Financing guide
Small-Business Financing Options: A Plain Guide
Short answer
Start from what the money is for. Short timing gaps fit lines of credit and trade credit; equipment fits equipment loans or leases; property fits commercial mortgages or SBA 504; buying a business often uses SBA 7(a). Fast products like merchant cash advances cost far more and are best kept for genuine emergencies. GoHarvest makes no offers and refers to no lenders.
This is a guide, not a marketplace. GoHarvest doesn't lend, broker or refer, so nothing here is ranked by who pays us. It's organized around the question that matters first: what is the money for?
Find the need, then the product
| If you need money for... | Usually a good fit | Read |
|---|---|---|
| Payroll or bills before customers pay | Line of credit; trade credit; factoring for B2B invoices | Line vs term loan, factoring |
| Seasonal inventory | Line of credit; supplier terms; SBA CAPLines | Line vs term loan |
| Equipment or vehicles | Equipment loan or lease; SBA 7(a) or 504 for larger items | Equipment financing |
| Buying or improving a building | Commercial mortgage; SBA 504; SBA 7(a) | SBA loans |
| Buying a business | SBA 7(a); bank term loan; seller financing | Credit before a sale |
| Growth for a recurring-revenue business | Term loan; revenue-based financing | Revenue-based financing |
| A small start-up need | SBA microloan (up to $50,000); CDFI loan; business card for very small amounts | Institutional lenders |
| An emergency nothing else covers | Merchant cash advance, with great care | MCAs and factor rates |
| Covering ongoing losses | Usually not debt: equity, cost changes or restructuring | Capital structure |
Three rules that prevent most mistakes
- Match the term to the use. Short money for short needs, long money for long assets.
- Compare APR and total dollars. A quoted rate, factor or fee isn't comparable on its own. Use the APR calculator.
- Size it to cash flow. Add the new payment to existing ones and check your DSCR.
Where most small businesses actually go
In the Federal Reserve Banks' 2025 Small Business Credit Survey of employer firms, 60% applied for some financing in the prior year and 38% for a loan, line of credit or merchant cash advance. Credit cards and loans were the products firms most commonly used regularly. Applicants to small banks were fully approved at 57%. Starting with a lender who knows you tends to pay off.
Comparing everything at once
The full comparison of lending options puts every product type in one table: how it's priced, typical terms, collateral, guarantees and who it tends to suit.
Sources
Checked November 9, 2026. Program rules and scoring models change; the source is the authority.