50 Financing Options Available for Your Business Now

50 Financing Options Available for Your Business Now

Is this for you?

  • Your business is a startup.
  • It operates in a high-risk industry.
  • It hasn’t yet experienced significant growth or cash flow.
  • Your business has a history of bad credit.
  • You lack collateral for loans.
  • You’ve been previously denied financing.
  • The financing terms available to you have been unfavorable.
  • You have limited time to secure financing.

Understanding Business Funding Potential

  • Funding Potential refers to a company’s ability or potential to secure financing.
  • Key Factors: It includes various aspects that lenders or credit providers evaluate to determine the likelihood of a company repaying a loan or credit.
  • Overlooked Considerations: Often, there are critical factors influencing fundability that businesses may not have considered or might underestimate in importance.

Business Funding Potential Issues: Impact of Your Business Name

  • High-Risk Industry Names: If your company’s name includes terms associated with high-risk sectors (like bail bonds, pawn shops, or dentistry during COVID risk), it could hinder your funding opportunities.  Search for “HIGH RISK NAICS INDUSTRIES”
  • Influence on Funding: The company’s name might unexpectedly be a factor in the difficulty of obtaining funding.
  • Industry Name Not Necessary: Your business name doesn’t have to explicitly include your industry type.
  • Updating Name Changes: In case of a name change, it’s crucial to update this information with the Secretary of State, on business licenses, and in loan applications.
  • Consistency is Key: Ensure that the updated name is reflected consistently across registration forms, approvals, and reports to credit reporting agencies like D&B, Experian, and Equifax.
  • Avoiding Fraud Perception: Lenders and credit companies may perceive discrepancies in your company’s name across different documents as fraudulent.
  • Monitoring Name Usage: Keep track of all instances where your company’s name is used to ensure accuracy and consistency.

What Are The Major Naics Codes To Consider To Name As Your Company Industry For Business Funding?

221112 Fossil Fuel Electric Power Generation 

221119 Other Electric Power Generation 

221122 Electric Power Distribution 

221122 Electric Power Distribution 

221330 Steam and Air-Conditioning Supply 

236220 Commercial and Institutional Building Construction 

238220 Plumbing, Heating, and Air-Conditioning Contractors

322121 Paper (Except Newsprint) Mills 

323111 Commercial Printing (Except Screen and Books) 

323113 Commercial Screen Printing 

323119 Other Commercial Printing 

325220 Artificial and Synthetic Fibers and Filaments Manufacturing 

325910 Printing Ink Manufacturing 

325998 All Other Miscellaneous Chemical Product and Preparation Manufacturing 

326299 All Other Rubber Product Manufacturing

333244 Printing Machinery and Equipment Manufacturing 

334111 Electronic Computer Manufacturing 

334112 Computer Storage Device Manufacturing 

334113 Computer Terminal Manufacturing 

334118 Computer Terminal and Other Computer Peripheral Equipment Manufacturing 

334119 Other Computer Peripheral Equipment Manufacturing 

334290 Other Communications Equipment Manufacturing 

334310 Audio and Video Equipment Manufacturing 

334516 Analytical Laboratory Instrument Manufacturing

 334611 Software Reproducing 

339944 Carbon Paper and Inked Ribbon Manufacturing 

423420 Office Equipment Merchant Wholesalers 

423430 Computer and Computer Peripheral Equipment and Software Merchant Wholesalers 

423710 Hardware Merchant Wholesalers 

423840 Industrial Supplies Merchant Wholesalers 

443120 Computer and Software Stores 

452910 Warehouse Clubs and Supercenters 

481111 Scheduled Passenger Air Transportation 

484210 Used Household and Office Goods Moving 

485111 Mixed Mode Transit Systems 

485113 Bus and Other Motor Vehicle Transit Systems 

492110 Couriers and Express Delivery Services 

493110 General Warehousing and Storage 

511120 Periodical Publishers 

511130 Book Publishers 

511140 Directory and Mailing List Publishers 

511210 Software Publishers 

517110 Wired Telecommunications Carriers 

517210 Wireless Telecommunications Carriers (Except Satellite) 

517212 Cellular and Other Wireless Telecommunications 

517410 Satellite Telecommunications 

517911 Telecommunications Resellers 

517919 All Other Telecommunications 

518111 Internet Service Providers 

518210 Data Processing, Hosting, And Related Services 

519130 Internet Publishing and Broadcasting and Web Search Portals 

519190 All Other Information Services 

522310 Mortgage and Nonmortgage Loan Brokers 

523920 Portfolio Management

523999 Miscellaneous Financial Investment Activities 

524114 Direct Health and Medical Insurance Carriers 

524210 Insurance Agencies and Brokerages 

531210 Offices of Real Estate Agents and Brokers 532420 Office Machinery and Equipment Rental and Leasing 

532420 Office Machinery and Equipment Rental and Leasing 

532490 Other Commercial and Industrial Machinery and Equipment Rental and Leasing 

541110 Offices of Lawyers 

541211 Offices of Certified Public Accountants

541219 Other Accounting Services 

541310 Architectural Services 

541330 Engineering Services 

541380 Testing Laboratories 541511 Custom Computer Programming Services 

541511 Custom Computer Programming Services 

541512 Computer Systems Design Services 

541513 Computer Facilities Management Services 

541519 Other Computer Related Services 

541611 Administrative Management and General Management Consulting Services 

541612 Human Resources Consulting Services, Human Resources and Executive Search Consulting Services 

541614 Process, Physical Distribution, and Logistics Consulting Services 

541618 Other Management Consulting Services 

541620 Environmental Consulting Services 

541690 Other Scientific and Technical Consulting Services 

541712 Research and Development in the Physical, Engineering, and Life Sciences (Except Biotechnology) 

541720 Research and Development in the Social Sciences and Humanities 

541820 Public Relations Agencies 

541910 Marketing Research and Public Opinion Polling 

541990 All Other Professional, Scientific, And Technical Services 

561110 Office Administrative Services 

561210 Facilities Support Services 

561320 Temporary Help Services 

561410 Document Preparation Services 

561450 Credit Bureaus 

561499 All Other Business Support Services 

561510 Travel Agencies 

561611 Investigation Services

561612 Security Guards and Patrol Services 

561621 Security Systems Services (Except Locksmiths) 

561720 Janitorial Services 

561990 All Other Support Services 

611420 Computer Training 

611430 Professional and Management Development Training

721110 Hotels (Except Casino Hotels) and Motels 

722320 Caterers 

 811212 Computer and Office Machine Repair and Maintenance 

811219 Other Electronic and Precision Equipment Repair and Maintenance

812930 Parking Lots and Garages 

928120 International Affairs 

9562211 Hazardous Waste Treatment and Disposal 

Business Funding Potential: NAICS Code Considerations

  • Identifying Your NAICS Code: Determine your business’s North American Industry Classification System (NAICS) code via NAICS.com.
  • NAICS Classification: Businesses are categorized under NAICS codes based on their primary operations. High-risk NAICS codes can be found by searching “HIGH RISK NAICS CODES” or “HIGH RISK/CASH INTENSIVE NAICS INDUSTRIES.”
    • Examples of High-Risk Codes: Industries like boat dealers, money order sales, jewelry stores, pawn shops, liquor stores, vending machines, and currency exchanges are typically labeled high-risk.
  • Using Alternative NAICS Codes: If more than one NAICS code is applicable to your business, opting for a less risky one is acceptable and isn’t considered misleading or unethical.
  • Importance of NAICS Codes: These codes are utilized by the IRS, banks, insurance agencies, and corporate credit reporting agencies (CRAs) to assess if a business is in a high-risk market.
  • Impact on Financing: Your business’s classification under certain NAICS codes could lead to loan rejections, business credit card denials, higher insurance premiums, or reduced credit limits.
  • For More Information: Visit NAICS.com for additional details and guidance.

Business Funding: Business Entity Type

  • Avoid applying for funding using a sole proprietorship.
  • Consider establishing a new corporation or LLC (Limited Liability Company) or Corporation.  They’re both funded the same when building business credit.
  • If feasible, acquire a pre-existing aged company, provided it has a clean financial record and is free from debt.
  • In the past, corporations were treated better than LLCs in building business credit.  That is no longer the case.  At the moment, LLCs and corporation are on an even playing field in building business credit and obtaining business funding.

Fundability Issue: Your EIN (Employer Identification Number)

  • Your company must have a federal tax ID number, known as an EIN (Employer Identification Number).
  • The EIN serves as a unique identifier for your business, recognized by the IRS and lenders.
  • To open a business bank account, you need an EIN.
  • Ensure that your company is consistently identified with the same Tax ID number across all agencies, banks, and trade credit vendors. Double-check for accuracy.

Fundability Issue: Opening the Business Bank Account

  • Open the bank account in the name of your company, using the company’s name and EIN (Employer Identification Number).
  • To open a business bank account, you typically need the following:
  • Copy of the articles of incorporation, which is the official filing with the Secretary of State at the time of your company’s formation. Some banks may also require your company to be filed as a foreign entity (foreign qualification) if you’re conducting business out-of-state.
  • Certificate of good standing.
  • State-issued photo ID.
  • Social Security Number (SSN).
  • Initial deposit.
  • Completed application provided by the bank.
  • Resolution to open the account, signed by an officer of the company, often signed by you as the business owner.

Fundability Issue: Your Business Address

  • Your company’s address should ideally be a business address, preferably in a commercial or industrial zoned area.
  • It must be a physical address capable of receiving deliveries, not a residential address, apartment, PO Box, or UPS Store.

Fundability Issue: Your Business Phone Number

  • Using a personal mobile or home phone number as your primary business line may risk being perceived as inexperienced. Opt for a Voice Over IP (VoIP) number instead.
  • Avoid using your personal mobile or home phone as the official business phone line.
  • Ensure your company is listed with 411 directory services. You can do this by visiting Listyourself.net.
  • Verify that the 411 directory information matches the details in public records for consistency.

Fundability Issue: Your Business Licensing

  • Ensure that your company holds the appropriate licenses and verify that the business address on these licenses matches the address on all other documents.
  • Check with state, county, and city government departments to determine if there are any required licenses or permits for your business.
  • Obtaining certification can enhance your company’s reputation and attract more clients.

Fundability Issue: Your Business Website and Email

  • Align your email address with your business website. For a professional touch, use an email format like yourname@yoursite.com.
  • When it comes to your business email, refrain from using free email services like Yahoo, AOL, Gmail, Hotmail, or others.

The 3 C’s Capital Acquisition Formula

  • To gain a lender’s perspective on your company, envision it as an investor would. Consider what your company should look like from an investor’s standpoint.
  • Lenders typically evaluate one of three factors when approving a loan: cash flow, collateral, or credit.

# 50 Credit Line Hybrid: An Overview

The Credit Line Hybrid offers a unique financing option for businesses, especially startups and those in high-risk industries. Here’s a summary of its key features and qualifying criteria:

Key Features of Credit Line Hybrid

  • Unsecured Financing: It provides unsecured funding, meaning no collateral is required.
  • Higher Interest Rates: The interest rates for Credit Line Hybrids are typically higher compared to secured loans.
  • Loan Amounts and Credit Lines: Businesses with declared profits can access substantial loan amounts and credit lines, including 0% interest corporate credit cards.
  • Building Business Credit: These credit lines report to corporate credit agencies, aiding in the establishment and improvement of a business’s credit profile.
  • No Personal Guarantee Required: It allows for significant borrowing without personal guarantees, reducing personal risk.


Terms and Qualifying Criteria

  • Credit Score Requirements: Approval requires a decent credit score or a guarantor with good credit (FICO score of at least 680).
  • No Financials Needed: Unlike many traditional loans, Credit Line Hybrids don’t require financial statements for approval.
  • Loan Cap: The maximum loan amount can go up to $150,000, which is typically five times the highest revolving credit limit you already have.

This financing option can be particularly advantageous for businesses looking for flexible credit solutions without putting personal assets at risk. The ability to build business credit while accessing funds makes it a compelling choice for growing businesses.

#49 Equipment Financing: A Summary

Equipment financing offers a tailored solution for businesses needing to purchase physical assets. This method is particularly beneficial for acquiring items such as restaurant ovens, business vehicles, and other hard assets. Here’s an overview of its features and qualifying criteria:

Key Features of Equipment Financing

  • Purpose: Used for purchasing or leasing hard assets necessary for business operations.
  • Types of Assets: Applicable for a wide range of physical assets, including but not limited to kitchen equipment for restaurants or vehicles for business use.
  • Payment Structure: Payments are typically structured on a monthly basis.
  • Credit Building: Utilizing this financing option can contribute to building your business’s credit profile.

Terms and Qualifying Criteria

  • Service Provider: Credit Suite is noted as managing the terms of equipment lending.
  • Business Operation Duration: Eligibility requires that the company has been operational for a minimum of one year.
  • Credit Flexibility: Approval is possible even with bad credit, making it accessible to a wider range of businesses.
  • Rapid Approval Process: Financial statements are not a prerequisite for obtaining equipment financing, and approvals can be processed quickly, sometimes in as little as 24 hours.

Equipment financing stands out as a practical choice for businesses that need to acquire essential equipment but may not have the upfront capital or desire to purchase outright. Its flexibility in terms of credit requirements and the speed of approval make it especially attractive for growing businesses or those recovering from financial challenges.

#48 Equipment Leasing: Overview and Qualifications

Equipment leasing presents an alternative to outright purchase, offering flexibility and cost-effectiveness, especially for rapidly evolving technology. Here’s a summary of its features and qualifying criteria:

Key Features of Equipment Leasing

  • Leasing vs. Buying: Offers the option to lease equipment rather than purchasing it, which can be more financially feasible.
  • Lower Initial Cost: Typically requires less upfront investment compared to buying the equipment outright.
  • Flexible Terms: Leasing agreements often have more flexible terms compared to traditional equipment loans.
  • Easy Upgrades: Ideal for technology or equipment that quickly becomes outdated, as it allows for easy updates at the end of the lease term.

Terms and Qualifying Criteria

  • Provider
  • Credit Score Requirement: A personal credit score of 640 is usually sufficient for approval.
  • Equipment Details: Lenders may require specific information about the equipment being leased to process the approval.
  • Funding Potential: Qualifying businesses might be eligible for up to $10 million in equipment funding after a basic assessment.

Equipment leasing is particularly advantageous for businesses needing up-to-date technology or machinery but lacking the funds for a full purchase or wishing to avoid the depreciation associated with owning outdated equipment. The lower initial cost and potential for significant funding amounts make it a viable option for a wide range of businesses.

#47 Equipment Sale-Leaseback: Details and Qualifications

Equipment Sale-Leaseback is a financial strategy for businesses owning valuable equipment outright, allowing them to leverage these assets for immediate capital while retaining their use. Here are the key aspects and eligibility criteria for this option:

Key Features of Equipment Sale-Leaseback

  • Leveraging Owned Equipment: Utilizes machinery or equipment that a business already owns as collateral for lending.
  • Sale and Leaseback Process: Involves selling equipment to a lender (or lessor) and then leasing it back, which ensures continued use without losing operational capacity.
  • Tax Benefits: Businesses may benefit from tax breaks like Section 179, allowing for the depreciation of the leased equipment in the first year.

Terms and Qualifying Criteria

  • Variable Terms and Loan Amounts: The specifics of the agreement, including the length of the lease term and the amount of money that can be borrowed, vary depending on the situation and the value of the equipment.
  • Requirement of High-Value Equipment: To qualify, a business must own at least one substantial piece of high-value equipment outright.
  • Rapid Funding Process: In some scenarios, funding can be secured in as little as three weeks.
  • Lien-Free Equipment: It’s crucial that the equipment used as collateral is free of any liens or encumbrances to ensure a smooth transaction.

Equipment Sale-Leaseback is an effective method for businesses needing immediate funding while wanting to maintain the use of their essential equipment. It is especially suitable for companies with significant investment in high-value machinery or equipment but requiring liquidity for other business operations or expansion.

#46 Vendor Credit: Overview and Qualifications

Vendor Credit, a common business financing option, differs from traditional loans or credit lines. It is particularly used for acquiring goods or services from suppliers under a short-term credit arrangement. Here’s a breakdown of its characteristics and qualifying criteria:

Key Features of Vendor Credit

  • Flexible Terms and Amounts: The terms, including the length and the amount of credit, vary based on the vendor and the agreement.
  • Quick Access to Funds: Similar to Equipment Sale-Leaseback, funding through vendor credit can sometimes be obtained rapidly, often within a few weeks.
  • Requirement for Collateral: It typically requires having at least one high-value piece of equipment, which must be free of liens.

Terms and Qualifying Criteria for Vendor Credit

  • Variable Repayment Terms: The repayment terms depend on the vendor, but they often use the Net 30 framework, meaning the payment is due in full 30 days after the goods or services are delivered.
  • Specific Vendor Requirements: Different vendors have unique requirements. For instance, Crown Office Supplies charges a monthly fee and reports to major business credit rating services. This arrangement can aid in building a company’s credit profile.
  • Lower Credit Requirements: Vendor credit arrangements often don’t necessitate equity, a strong personal credit history, or proof of cash flow, making them accessible to a wider range of businesses, including startups or those with less established credit histories.

Vendor credit is particularly advantageous for businesses needing to manage cash flow efficiently while building a credit history. It offers a practical way to procure necessary goods or services while deferring immediate payment, thus maintaining liquidity.

#45 Retail Credit: Overview and Qualifications

Retail credit offers businesses a way to purchase necessary supplies or equipment directly from large retailers like Staples on credit terms. Here’s a summary of how it works and the qualifications needed:

Key Features of Retail Credit

  • Availability at Major Stores: Large retailers offer store credit, enabling businesses to purchase a variety of items, from office supplies to power tools.
  • Verification of Company Information: Retailers typically check for consistency and full authorization in the company’s information across various platforms.

Terms and Qualifying Criteria

  • Varied Requirements by Lenders: Different retail credit providers have unique qualifying criteria, which may include the business’s operational history, size, or revenue.
  • Operational History and Size: Some retailers might require your business to have been operational for a specified period, have a certain number of employees, or achieve a certain level of taxable revenue.
  • Credit Reporting: To qualify, your business might need to have established a certain number of trade accounts that report to commercial credit reporting agencies (CRAs).

Retail credit can be an excellent resource for businesses, particularly those that require regular supplies or equipment but prefer not to pay upfront. It not only facilitates the purchase of necessary items but also helps in building and strengthening a business’s credit profile.

#44 Fleet Credit: Overview and Qualifications

Fleet credit is a specialized form of credit used primarily for managing vehicle-related expenses, beneficial for both large and small businesses. Here’s a breakdown of its features and the criteria needed to qualify:

Key Features of Fleet Credit

  • Purpose: Primarily used for covering costs associated with fuel, equipment maintenance, and repairs.
  • Beneficial for Small Businesses: Even companies without large fleets can benefit from fleet credit, making it a versatile option.
  • Common Form: Gas credit cards are a prevalent type of fleet credit.

Terms and Qualifying Criteria

  • Varying Requirements: The prerequisites for obtaining fleet credit can differ significantly from one provider to another.
  • Minimum Operational Time: Many providers require a business to have been operational in its sector for a certain minimum period.
  • Alternative Qualification Methods: If a business doesn’t meet the operational time requirement, alternatives like providing a personal guarantee or making a deposit might be available to secure the credit.

Fleet credit offers a practical solution for businesses to manage their vehicle-related expenses efficiently. It’s especially useful for smaller companies that need to optimize their operational costs without the need for a substantial upfront investment.

# 43 Computer Leases: Overview

Computer leasing offers businesses an alternative to purchasing computing equipment outright, similar to leasing furniture or other office equipment. This approach can be particularly beneficial for managing cash flow and taking advantage of certain tax benefits. Here’s a brief overview:

Key Features of Computer Leases

  • Versatile Leasing Options: Allows businesses to lease a variety of computing equipment, including file servers, backup storage, hardware, and mainframes.
  • Tax Benefits: Leasing can offer tax advantages, allowing businesses to potentially deduct lease payments as a business expense, thereby optimizing cash flow.
  • Cost-Effective for Technology Upgrades: Ideal for keeping up with rapidly evolving technology without the heavy upfront costs of purchasing new equipment.

Computer leases represent a flexible and financially prudent option for businesses that require up-to-date technology but want to avoid the capital expenditure associated with purchasing the latest computing equipment.

#42 Cash Credit: Overview and Qualifications

Cash credit offers businesses a flexible financing option through universal credit cards like MasterCard. Here are the key features and qualifications for obtaining cash credit:

Key Features of Cash Credit

  • Universal Use: These credit cards can be used in almost any store, offering a high level of flexibility.
  • Incentives: Many cash credit cards come with additional benefits or incentives.

Terms and Qualifying Criteria for Cash Credit

  • Revolving Terms: Cash credit typically operates on revolving terms, meaning you can borrow, repay, and borrow again up to your credit limit.
  • Credit Reporting Requirements: You generally need at least fourteen accounts that report to commercial credit reporting agencies (CRAs) to qualify.
  • Time-Intensive Criteria: Meeting the business criteria for cash credit can be more time-consuming compared to other forms of credit.
  • Employee Numbers: Some cash credit providers may have stipulations regarding the minimum number of employees in your business.

Cash credit is a versatile option for businesses needing a readily accessible line of credit for various expenses, with the added benefit of potential rewards or incentives from credit card providers.

#41 Auto Financing: Overview and Qualifications

Auto financing is a key option for businesses requiring vehicles, whether new or used. Here are the essential aspects and qualifications for securing auto financing:

Key Features of Auto Financing

  • Lease Terms and Costs: The lease duration and payments vary based on whether the vehicle is new or used.
  • Impact of Vehicle Use: For used cars, the mileage significantly affects the loan terms.
  • Personal Guarantees: Business owners might need to personally guarantee auto loans.
  • Credit Reporting: If you’re a co-borrower, the debt typically appears on your personal credit report.
  • Prepayment Penalties: Some auto loans include clauses penalizing early repayment.

Terms and Qualifying Criteria

  • Down Payment Assessment: Determine the amount available for a down payment and the type and cost of the car you wish to finance.
  • Proof of Business Ownership: Provide documentation such as business licenses, partnership agreements, LLC certificates, and articles of incorporation, verifying at least a 20% ownership in the business.
  • Personal Credit Information: Include your personal credit score and history in the application.
  • Responsibility for Sole Proprietors: If you are a sole proprietor, you’ll be considered both the creditor and guarantor, with the loan registered under your Social Security number, making you directly responsible for repayment.
  • Loan Proposal Requirements: Prepare a detailed loan proposal including information about your business, the specific loan needs, and financial statements.

Auto financing can be a crucial tool for businesses in need of vehicles, offering various terms and options based on the vehicle type and the business’s financial status.

#40 Peer to Peer Lending: Overview and Qualifications

Peer to Peer (P2P) lending offers an alternative financing route, connecting borrowers directly with individual lenders. Here’s a summary of how it works and the qualifications needed:

Key Features of Peer to Peer Lending

  • Bypassing Traditional Banks: P2P lending allows individuals to lend and borrow money without involving traditional financial institutions.
  • Efficient and Cost-Effective: These platforms often facilitate faster and less expensive connections between borrowers and investors than traditional banking systems.
  • Risk Assessment: P2P networks conduct thorough risk assessments and communicate these risks to potential lenders.
  • Company Listing Challenges: Companies with a high-risk profile might find it more challenging to attract lenders on P2P platforms.

Terms and Qualifying Criteria

  • Variable Terms: The terms of P2P loans can vary significantly between different platforms and are also influenced by the borrower’s risk level.
  • Diverse Range of Platforms: There has been a change in the number of available P2P lending sites in recent years, each with its unique features.
  • Importance of Due Diligence: It’s crucial to thoroughly understand the terms and conditions, often found in the fine print, of each P2P platform before committing.

P2P lending can be a viable option for businesses seeking alternative financing methods, particularly those that may not qualify for traditional bank loans. However, it requires careful consideration of the platform’s terms and an understanding of the risk profile involved.

#39. Amazon Bank of America

  • Partnership Establishment: In 2011, Amazon Lending initiated a partnership with Bank of America Merrill Lynch.
  • Risk Reduction and Capital Access: This collaboration aids Amazon in minimizing its financial risk and provides access to additional capital. This enhanced capital availability enables Amazon to extend more credit to retailers.
  • Exclusivity of Amazon Lending: The Amazon Lending service is exclusive, open only to select retailers who receive an invitation.
  • Discounted Items for Participants: The program offers approximately 5 million items at special, discounted prices and quantities exclusively for those participating in the program.

#38. Amazon Marcus

Based on the details provided, here are the key terms and qualifying criteria for the Amazon Bank of America loan program:

  • Eligibility Based on Cash Flow: The eligibility for this loan program is primarily determined by the cash flow of the business. This implies that businesses must demonstrate a steady and sufficient cash flow to qualify.
  • Loan Amount and Terms: The program offers loans that range from $1,000 to $750,000, with terms lasting up to one year. This range allows flexibility for businesses of various sizes and needs.
  • Targeted Businesses: The loans are specifically intended for businesses that may face challenges in obtaining conventional business loans. This could include smaller businesses or those without a long credit history.
  • Discount Offer on Approval: Upon being approved for a loan, there is an offer of a 20% discount on the first $500. This discount is made available within five days of loan approval, providing an immediate financial benefit to the loan recipient.

These terms make the Amazon Bank of America loan program particularly suited for small to medium-sized businesses on Amazon’s platform that require financial support but might not easily qualify for traditional bank loans.

#37 Amazon Corporate Card Overview:

  • If you operate an online store, the Amazon Corporate Card offers you access to a revolving credit line.
  • Customers who spend over $100,000 annually on their accounts may have a dedicated account consultant assigned to them personally.
  • These account consultants are committed to helping you maximize the benefits of your credit line and adopt new product features.

Terms and Qualifications for the Amazon Corporate Card:

  • The Amazon Corporate Card provides a 55-day billing cycle, and it carries a purchasing Annual Percentage Rate (APR) of 12.99 percent, along with a $1 monthly interest fee.
  • To establish a business credit profile, it may be necessary to apply for the card with a personal guarantee.
  • You have the flexibility to choose between making minimum monthly payments or paying the full balance each month.

#36 Kickfurther Overview:

  • You can obtain funding for your next inventory order with the assistance of customers and supporters of your brand.
  • Customers engage by making purchases through a Consignment Opportunity, and they retain ownership of the products they help finance until your brand sells them.
  • You, as the seller, receive payments immediately upon selling the goods.
  • Additionally, businesses have the option to promote and distribute their products through the Kickfurther online store.

For additional details, please visit their website at kickfurther.com.

Kickfurther: Terms and Eligibility Criteria:

  • Kickfurther offers financing for inventory orders, allowing you to secure funding for amounts of up to $2 million.
  • The specific repayment terms can vary.
  • Sellers are typically required to submit sales reports and settle payments for the inventory sold at the conclusion of each sales period.
  • Additionally, you are expected to provide a monthly report outlining your existing inventory needs.

Please be aware that the terms and conditions associated with Kickfurther may change over time. For the most current information and eligibility requirements, it is recommended to visit their official website or contact them directly.

#35 Inventory Financing Overview:

  • Inventory financing refers to the acquisition of a revolving credit line or a short-term loan by a company to purchase goods for future resale.
  • The goods purchased serve as collateral for the loan.
  • There may be restrictions on the types of inventory that can be used as collateral.
  • Certain items such as cannabis, tobacco, firearms, and perishable foods may be prohibited from being used as collateral.

Inventory Financing: Terms and Eligibility:

  • You can qualify for a line of credit equal to 50% of the value of your inventory, regardless of your personal financial history.
  • The interest rates for this type of financing typically range from 5% to 15%, depending on the nature of the inventory.
  • Funds can be obtained within three weeks or less.
  • It’s important to note that inventory financing cannot be combined with non-inventory items like office appliances.

Please note that the specific terms and conditions of inventory financing may vary depending on the lender and the type of inventory being financed. It’s advisable to consult with a lender or financial institution for the most accurate and up-to-date information regarding inventory financing options.

#34 Fundbox Overview:

  • To get started with Fundbox, simply connect it to your online accounting tools, and you’re ready to go.
  • Fundbox offers the choice of a line of credit or invoice funding.
  • For more details, you can visit their website at fundbox.com.

Fundbox: Terms and Eligibility:

  • Access a revolving credit line of up to $150,000.
  • Fundbox automatically deducts your weekly deposits from your bank account.
  • There is no specific requirement for a minimum personal credit score or a mandatory duration of time in business.

Please note that the terms and conditions of using Fundbox may have variations depending on the specifics of your business and the current policies of the service. For the most up-to-date information and eligibility criteria, it’s advisable to visit their official website or contact them directly.


#33 Account Receivables Financing Overview:

  • Outstanding account receivables can serve as a source of equity or a basis for borrowing.
  • The management of receivables can be outsourced to the government or another company.
  • This financing option allows you to obtain loans and fulfill sales orders using your outstanding receivables, without affecting your cash flow.
  • An accounts receivable credit line is available with interest rates of less than 1%, and there’s no requirement for a customer’s creditworthiness.

Account Receivables Financing: Terms and Qualification:

  • Utilize your deferred account receivables to support your business, and access up to 80% of your receivables within four hours.
  • After the invoice is paid in full, any remaining accounts receivables are released.
  • Factor rates as low as 1.33% are possible with this financing option.
  • Obtain a credit line for accounts receivables at interest rates of less than 1%, and no customer credit check is necessary.

Please be aware that the specific terms and conditions for Account Receivables Financing may vary depending on the provider and the details of your receivables. For the most current information and eligibility requirements, it’s advisable to contact the financing provider directly or visit their official website. 

#32 401(k) Financing Overview:

  • 401(k) financing differs from making a deposit into your retirement account.
  • There are no early withdrawal penalties or tax levies associated with this type of financing.
  • The funds withdrawn can be returned to the account through investments, similar to any other 401(k) plan, ensuring that your retirement savings remain intact.
  • This is a specific type of Working Capital Programs 401(k) Rollover.
  • According to IRS guidelines, a ROBS (Rollover for Business Startups) eligible plan is a separate entity with its own regulations.
  • The plan, not the individual, owns the business or enterprise through its investments in company stock.
  • Consequently, some personal filing exceptions do not apply to such a plan.
  • Since this doesn’t constitute a debt against the 401(k), there are minimal penalties to worry about.
  • It does not rely on the 401(k) or an equity portfolio as leverage.

401(k) Financing: Terms and Eligibility:

  • Interest rates for 401(k) loans typically remain below 5%.
  • You can generally access more than $35,000 from your 401(k) for this type of financing.
  • You can typically obtain up to 100% of the amount that’s “rollable” within your 401(k).
  • Lenders may require copies of your two most recent 401(k) statements as part of the application process.

Please note that the terms and conditions for 401(k) Financing may vary depending on the specific lender and the details of your retirement account. To get the most accurate and up-to-date information regarding 401(k) financing options, it’s advisable to contact the lender directly or visit their official website.

#31 IRA Financing Overview:

  • The process of funding an IRA is similar to that of a 401(k) plan.
  • You can move a portion of your retirement savings into your company in as little as three weeks.
  • This approach provides you with increased control over the performance of your retirement investments while also supplying the operational capital needed for business expansion.

IRA Financing: Terms and Eligibility:

  • Typically, you will work with a Certified Public Accountant (CPA) during this process.
  • Your CPA will assist you in transitioning funds from a non-contributing account into a qualifying account.
  • This allows you to access up to half of your retirement savings, or a maximum of $50,000, whichever is less.
  • If needed, your CPA will establish a self-directed IRA for the remaining funds.

Please note that the terms and conditions for IRA Financing may vary depending on your specific situation and the regulations governing retirement accounts. It’s advisable to consult with a CPA or financial professional for the most accurate and up-to-date information on IRA financing options.

#30 Stocks Financing Overview:

  • Certain lenders offer loans that are collateralized by securities, providing leverage for borrowers.
  • Securities-based financing offers a swift way to access funds.
  • These funds can be utilized for a wide range of purposes, including real estate acquisitions and business investments.
  • The primary limitations of this lending method are that it should be used for securities-based investments, such as purchasing bonds or repaying a margin loan.

Stocks Financing: Terms and Eligibility:

  • If you opt for stocks borrowing, you can continue to earn interest on the securities used as collateral.
  • The process of closing and obtaining financing can be completed in as little as three weeks, and interest rates as low as 1.6 percent are achievable.


#29 Bonds Financing Overview:

  • Major financial institutions and private banks offer securities-based loans for financing bonds.
  • Individuals often seek these loans when they have a need for significant business investments or when engaging in substantial transactions like real estate transactions.
  • The loan amount is determined based on the value of the borrower’s investment account.
  • In some cases, eligibility for the loan can be determined by the underlying asset.
  • In place of stocks, a loan can be approved based on a portfolio of US Treasury notes.

Bonds Financing: Terms and Qualification:

  • Bonds financing typically accepts a wide range of bonds, including investment-grade private, treasury, federal, and government department bonds.
  • You retain the full value and appreciation of your bond holdings.
  • Qualifying for the loan usually requires providing the lender with copies of the two most recent securities statements.
  • Even if your personal credit is less than stellar, you may be eligible for approval if the value of your securities or bonds exceeds $25,000.

#28 Angel Investing Overview:

  • Angel investors provide funding to support new businesses and entrepreneurs.
  • Angel investors often include individuals from the entrepreneur’s circle of family and friends.
  • They may make a one-time investment to help launch the business or provide continuous financial support to sustain the company during its early stages.
  • Angel investors are not subject to the Securities Exchange Commission’s (SEC) guidelines for accredited investors.
  • Angels can be individuals who have a personal stake in the success of the business, such as family members or colleagues, or they can be local professionals seeking investment opportunities.

Angel Investing: Terms and Qualification:

  • Angel investments are typically informal, so there are no standardized terms.
  • While there may not be specific qualifications, some investors might require an evaluation of your business before providing funding.
  • Regardless of the arrangement, it’s always advisable to document everything in a written agreement.

Please be aware that the specific terms and conditions of angel investments can vary widely based on individual investors and their preferences. It’s important to communicate openly with potential angel investors and seek legal or financial advice when entering into such arrangements.

#27 Venture Capital Overview:

  • When venture capitalists identify a business with high growth potential but also high risk, they invest capital to aid in its development.
  • Many high-growth businesses have a clear exit strategy.
  • Typically, venture investors aim to recoup their investment within a span of 3 to 5 years.
  • Venture capitalists often seek to acquire a significant ownership stake in a company, and in some cases, they may aim to acquire the entire company.
  • They are primarily interested in groundbreaking companies, and relatively simple businesses may not attract their attention.
  • Similar to angel investors, venture capital investments involve relinquishing a portion of the company’s ownership, but VCs may typically seek a larger stake in the business.

Venture Capital: Terms and Qualification:

  • Venture capitalists are more formal investors compared to angel investors, so a thorough evaluation of the company is almost always required.
  • Specific terms and conditions will be clearly outlined in the agreement with venture capitalists.
  • Additionally, there will be regulatory provisions from the Securities and Exchange Commission (SEC) to consider.

Please note that venture capital deals can vary significantly based on the specific venture capitalist and the circumstances of the business. It’s essential to consult with legal and financial professionals when entering into such arrangements, given their complexity and formal nature.

#26 PayPal Business Loans Overview:

  • PayPal offers loans to businesses based on their PayPal sales, with the loan amount and eligibility determined by these sales.
  • To qualify for a PayPal loan, your business must have been in operation for a minimum of 9 months.
  • For more details, you can visit their website at paypal.com/us/webapps/mpp/paypal-business-loan.

PayPal: Terms and Qualification:

  • PayPal provides loans with amounts ranging from $5,000 to $500,000.
  • The maximum loan amount you can borrow is 35 percent of your annual PayPal revenue.
  • Applying for a PayPal loan may involve credit checks and other public records checks, which could potentially affect your credit score.

Please note that the specific terms and conditions for PayPal loans may vary, and it’s advisable to visit their official website or contact them directly for the most accurate and up-to-date information on loan options and eligibility criteria.

#25 Square Capital Overview:

  • Square provides loans with amounts that range from $300 to $100,000.
  • Borrowers using Square’s services receive a customized loan offer based on their card sales, allowing them to select their desired loan amount.
  • Instead of charging interest, Square loans come with a one-time fixed fee.
  • For additional details, you can visit their website at squareup.com/capital.

Square Capital: Terms and Qualification:

  • Square offers loans with a range of amounts from $300 to $100,000.
  • Borrowers are presented with a personalized loan offer through Square, determined based on their card sales, and they have the freedom to choose the loan amount they prefer.
  • Square loans are structured with a single fixed fee, rather than traditional interest rates.

Please keep in mind that the specific terms and conditions for Square Capital loans may vary, and it is advisable to visit their official website or contact them directly for the most accurate and up-to-date information on loan options and eligibility criteria.

#24 Stripe Overview:

  • Stripe is a service that assists in the management of your online business.
  • Unlike PayPal, Stripe functions as a white-label merchant account.
  • Stripe is a company that handles transactions, detects potential fraud, and takes a small fee.
  • Stripe offers integration with a wide variety of business tools and services.
  • Examples of these integrations include e-commerce websites, shopping carts, billing and invoicing systems, and customer relationship management (CRM) applications.

Stripe: Terms and Eligibility:

  • Stripe can also facilitate the process of obtaining a business passport.
  • To get started with Stripe, you need to create a Stripe account.
  • Your creditworthiness is evaluated based on your payment history and the duration of your relationship with Stripe.
  • As your business grows, your business credit line with Stripe can expand.
  • Stripe’s credit card program is in beta, and you need to request an invitation to participate.
  • Eligibility for the credit card program is determined based on factors such as payment volume, your business’s history with Stripe, and your bank account history.

Please note that specific terms and conditions for Stripe services may vary, and it’s recommended to visit their official website or contact them directly for the most accurate and up-to-date information on their offerings and eligibility criteria.

#23 Merchant Lines of Credit Overview:

  • Retail stores have the option to offer merchant lines of credit to their customers.
  • These business-specific lines of credit can typically only be used at the specific store where they are issued.
  • For example, Amazon provides business credit lines through Marcus by Goldman Sachs.

Merchant Lines of Credit: Terms and Eligibility:

  • The terms for merchant lines of credit can vary widely.
  • Eligibility for these credit lines is often determined based on cash flow.
  • Some lines of credit may come with special lending terms, which can include specific timeframes, eligible items, or a required dollar amount spent at the store.
  • In certain cases, full payment may be required after a designated period, such as a promotional period.
  • Unlike traditional credit cards and merchant credit cards that allow borrowers to carry a revolving balance with interest, merchant lines of credit may offer reduced or zero percent interest, or a discount off the purchase price, in exchange for a shorter repayment period.

Please keep in mind that the specific terms and conditions of merchant lines of credit can vary depending on the retailer and the details of the credit offer. It is advisable to inquire with the specific retailer or financial institution for the most accurate and up-to-date information regarding their merchant credit offerings and eligibility criteria.

#22 Business Revenue Financing Overview:

  • Business revenue financing is a funding method where funds are raised from customers in exchange for a share of the ongoing gross profits of the company.
  • Investors who participate in revenue-based financing receive a daily portion of the business’s earnings until a predetermined fee is met.

Business Revenue Financing: Terms and Eligibility:

  • The repayment period for this type of financing can vary because it relies on sales.
  • The rate at which you can repay the loan depends on how your income fluctuates; higher income results in faster debt repayment, while lower income may prolong it.
  • Typically, the portion of earnings allocated to debt repayment may be as much as 10% of monthly revenue.
  • Monthly installments will fluctuate based on the highs and lows of sales, and they will continue until the entire debt is paid off.

Please note that the specific terms and conditions for Business Revenue Financing may vary among lenders and financing providers. It is recommended to contact the lender directly or visit their official website for the most current and accurate information on this financing option and its eligibility criteria.

#21Merchant Cash Advances Overview:

  • A Merchant Cash Advance (MCA) is not a traditional loan but rather a cash advance based on a company’s credit card sales.
  • Small businesses can apply for an MCA and receive funds deposited into their accounts within a few days.
  • With an MCA, you can have Net 30 terms, allowing you to receive payment without waiting for a full month.
  • Merchant cash advances are designed for business owners who accept credit cards and need quick and convenient funding.
  • MCA providers use your company’s bank statements to assess your cash balance, eliminating the need for lengthy paperwork requirements.
  • As a result, lenders do not make extensive paperwork demands for MCAs.

Merchant Cash Advances: Terms and Eligibility:

  • Lenders may also review your company’s bank accounts to check for an excessive number of Non-Sufficient Funds (NSFs).
  • They want to ensure that your merchant accounts have few chargebacks and that you have more than ten deposits per month into your bank account.
  • Essentially, they seek evidence of responsible management of your bank and merchant accounts.

Please note that the specific terms and conditions for Merchant Cash Advances may vary among lenders. It’s advisable to contact the lender directly or visit their official website for the most accurate and up-to-date information on MCA options and eligibility criteria.

#20 Unsecured Credit Cards Overview:

  • Unsecured credit cards do not require an initial deposit of money to open.
  • Providers consider them riskier because there’s no collateral, making them less accessible if you have poor credit.
  • Consequently, individuals with bad credit may receive credit cards with limited credit limits.

Unsecured Credit Cards: Terms and Qualification:

  • Unsecured credit cards come with varying Annual Percentage Rates (APRs).
  • Some of these cards may offer rewards or bonuses.
  • Your interest rates will be lower, and your credit limits will be higher if you have a higher FICO score (personal credit score).

Please keep in mind that the specific terms and conditions for unsecured credit cards can vary among credit card providers. It’s advisable to review the terms and conditions of each card and check with the issuer for the most accurate and up-to-date information on APRs, credit limits, and eligibility criteria.

#19 Book of Business Financing Overview:

  • A professional’s “book of business” refers to their list of clients or customers.
  • For insurance agents, their book of business can continuously grow as they acquire more clients.
  • Insurance brokers can use their renewable commissions as collateral to secure low-interest, long-term funding.
  • While this financing option is more suitable for insurance brokers due to compliance and terminology, State Farm agents may not be eligible.

Book of Business Financing: Terms and Qualification:

  • To qualify, you will need to have your business evaluated.
  • Lenders will assess a combination of your business performance, cash flow, and operational efficiency.
  • The primary qualification requirement is having a book of business with renewable commissions.
  • You can also use your book of business as collateral when purchasing an independent insurance agency to secure approval.
  • Even with an average personal credit score, you can still be approved for this type of financing.

Please note that the specific terms and conditions for Book of Business Financing may vary among lenders and financing providers. It’s recommended to contact the lender directly or visit their official website for the most accurate and up-to-date information on eligibility criteria and financing terms.

#18 Reward-Based Crowdfunding Overview:

  • Crowdfunding is a method to raise funds for your business.
  • You can start by using a platform like Kickstarter, but it’s essential to carefully review the platform’s terms and conditions before signing up.
  • Many crowdfunding websites require you to return all the funds raised if you fail to meet your fundraising target by the end of the campaign. However, Indiegogo offers a flexible funding option.
  • Crowdfunding is particularly effective when supporters can directly engage with a product or service, but it can be challenging for simple businesses to succeed.
  • The most successful crowdfunding projects often involve creative efforts to develop innovative products.
  • Standard widgets are less likely to attract brand ambassadors.
  • Crowdfunding projects can be time-consuming, so it’s advisable to pursue this financing method only if you are confident that your chances of success exceed 50%.

Reward-Based Crowdfunding: Terms and Eligibility:

  • The terms of crowdfunding can vary depending on the platform you choose.
  • Always ensure that your chosen platform aligns with your industry and project.
  • It’s worth noting that some crowdfunding platforms, like Kickstarter, prohibit funding for marijuana, cigarettes, alcohol, vaporizers, and related paraphernalia, even in states where commercial cannabis use is legal.
  • Every major crowdfunding site typically has a rules section, so it’s crucial to carefully read and understand their guidelines.

Please keep in mind that each crowdfunding platform may have its specific terms, conditions, and eligibility criteria. It’s advisable to thoroughly review the rules of the platform you intend to use and seek legal advice if necessary to ensure compliance with their policies.

#17 Equity Crowdfunding Overview:

  • Equity crowdfunding refers to a method by which a business offers shares to raise capital, and this business is typically not listed on a stock exchange.
  • Equity crowdfunding has been in existence for approximately ten years.
  • It differs from reward-based crowdfunding, as seen on platforms like Kickstarter.
  • In equity crowdfunding, potential investors visit a funding portal page where they can explore various investment opportunities.
  • The ability of an individual to invest a certain amount of money is often limited based on their income and net worth.

Equity Crowdfunding: Terms and Eligibility:

  • Equity crowdfunding is subject to regulatory frameworks such as the Securities Act of 1933, Regulation Crowdfunding (17 CFR Part 227), Regulation D Rule 506 (17 CFR § 230.506), and Regulation A+ (17 CFR § 227.100).
  • For more detailed information, it’s advisable to visit a reliable legal resource like law.cornell.edu/cfr/text/17/227.100.
  • Federal laws pertaining to equity crowdfunding can be intricate, and it is recommended to seek guidance from an attorney well-versed in federal law, particularly in the areas of securities and corporations, for a thorough understanding of the terms and qualifications.

Please note that equity crowdfunding regulations may evolve over time, so consulting with a legal professional familiar with the latest laws and regulations is essential when considering equity crowdfunding for your business.

#16 Federal Grants Overview:

  • Federal government grants typically do not require repayment.
  • You can explore options like the Department of Housing and Urban Development (HUD) for urban projects or the Department of Agriculture (USDA) for rural programs.
  • Applying for federal grants often involves a significant amount of documentation.
  • In some cases, you may be required to demonstrate prior experience in a related field.

Federal Grants: Terms and Eligibility:

  • Federal grants come with various requirements and are highly competitive.
  • It’s essential to thoroughly review all grant details, including deadlines and necessary documentation.
  • Some grants may prioritize applications from minority-owned, female-owned, veteran-owned, or disabled-owned businesses.

Please note that the specific terms and eligibility criteria for federal grants can vary widely depending on the grant program. For the most accurate and up-to-date information, it’s recommended to visit the official website grants.gov and carefully review the details of each grant opportunity you are interested in.

#15 Local, City, and State Grants Overview:

  • Municipal authorities often offer incentives and grants for small businesses.
  • You can visit grantwatch.com to find current grants that may be relevant to your small business.
  • It’s advisable to also explore information on the websites of your city and state governments.
  • Local grants often have more flexible requirements compared to federal grants.
  • Collaborating with local businesses can demonstrate your commitment to the community.

Local, City, and State Grants: Terms and Eligibility:

  • Similar to federal grants, it’s essential to carefully review all terms and conditions, as well as other relevant details.
  • Eligibility criteria may include being a resident of the specific state, area, or county in question or having your business headquartered there.

Please be aware that the specific terms and eligibility requirements for local, city, and state grants can vary significantly depending on the grant program and location. For the most accurate and up-to-date information, it’s recommended to visit the official websites of relevant authorities and grant sources in your area.

#14 Commercial Real Estate Financing Overview:

  • Commercial real estate loans are typically extended to developers, businesses, limited partnerships, accounts, and trusts.
  • These entities are often established with the specific purpose of acquiring commercial properties.
  • Corporate entities may not have an established financial history or credit scores.
  • In such cases, lenders may allow the loan to be guaranteed by the principals or shareholders of the entity.
  • This means that individuals with poor credit histories, or a group of people with poor credit, are putting their personal assets at risk.
  • The lender can seize these assets if the borrower defaults on the loan.

Commercial Real Estate Financing: Terms and Eligibility:

  • Lender assessments can include evaluating available collateral, the creditworthiness of the borrower, and various financial ratios based on the property’s characteristics.
  • Depending on the lender, borrowers may be required to provide several years of financial statements and tax reports.
  • Lenders may also request financial statements that demonstrate the cash flow generated by the property to be financed.
  • Borrowers with lower Loan-to-Value Ratios (LTVs) may qualify for lower interest rates compared to those with higher LTVs.
  • The Loan-to-Value Ratio (LTV) is a calculation that compares the loan amount to the value of the property.

Please note that the specific terms and eligibility criteria for commercial real estate financing can vary among lenders, and it’s essential to consult with potential lenders to understand their requirements and conditions thoroughly.

#13 SBA Contract Line Overview:

  • The SBA Contract Line is a type of loan offered by the Small Business Administration (SBA) and is categorized under the CAPLines program.
  • This loan can either be revolving or non-revolving, and it is designed to provide financing for direct labor and manufacturing costs associated with fulfilling assignable contracts.

SBA Contract Line: Terms and Eligibility:

  • Borrowers can access loans of up to $5 million through the SBA Contract Lines program.
  • The eligibility requirements for this program align with those of other SBA programs.
  • The maximum maturity period for this CAPLine loan is ten years.
  • A key requirement is that the loan must be personally guaranteed by an individual who owns at least 20% of the applicant’s business.

Please note that the specific terms and eligibility criteria for the SBA Contract Line may be subject to further details and conditions determined by the SBA, so it’s advisable to consult with the SBA or a qualified lender for comprehensive information.

#12 SBA Working Capital Overview:

  • Borrowers are required to utilize the loan proceeds for short-term working capital needs and operational expenses.
  • If the funds are used to acquire fixed assets, the borrower must refinance the portion of the loan used for that purpose into a facility with more favorable terms.
  • This refinancing must take place within 90 days of the lender’s discovery that the loan funds were used for a fixed asset purchase.

SBA Working Capital: Terms and Eligibility:

  • Borrowers can access loans of up to $5 million through the SBA Working Capital program.
  • The eligibility criteria for this program align with those of other SBA programs.
  • The maximum maturity period for this CAPLine loan is ten years.
  • A critical requirement is that the loan must be personally guaranteed by an individual who owns at least 20% of the applicant’s business.

Please note that the specific terms and eligibility conditions for SBA Working Capital may be subject to further details and guidelines established by the SBA, so it’s advisable to consult with the SBA or a qualified lender for comprehensive information.

#11 SBA Builders Line Overview:

  • The SBA Builders Line is specifically designed for general contractors or builders engaged in the construction or renovation of commercial or residential buildings.
  • It provides financing for direct labor and material costs, with the building project itself serving as collateral.

SBA Builders Line: Terms and Eligibility:

  • Borrowers can access loans of up to $5 million through the SBA Builders Line program.
  • The eligibility requirements for this program are consistent with those of other SBA programs.
  • The maximum maturity period for this CAPLine loan is ten years.
  • A key requirement is that the loan must be personally guaranteed by an individual who owns at least 20% of the applicant’s business.

Please note that the specific terms and eligibility criteria for the SBA Builders Line may be subject to further details and conditions determined by the SBA, so it’s advisable to consult with the SBA or a qualified lender for comprehensive information.

#10 SBA Seasonal Line Overview:

  • SBA Seasonal Line advances are utilized to cover planned expenses related to inventory, accounts receivables, and occasionally increased labor costs.
  • This program, which can be either revolving or non-revolving, is designed to provide support to seasonal businesses.

SBA Seasonal Line: Terms and Eligibility:

  • Borrowers can access loans of up to $5 million through the SBA Seasonal Line program.
  • The eligibility criteria for this program align with those of other SBA programs.
  • The maximum maturity period for this CAPLine loan is ten years.
  • A significant requirement is that the loan must be personally guaranteed by an individual who owns at least 20% of the applicant’s business.

Please note that the specific terms and eligibility conditions for the SBA Seasonal Line may be subject to further details and guidelines established by the SBA, so it’s advisable to consult with the SBA or a qualified lender for comprehensive information.

#9 SBA 7(a) Loan Program Overview:

  • The SBA 7(a) loan program is the most widely utilized SBA loan option.
  • The SBA offers an 85% guarantee for loans up to $150,000, and for loans exceeding $150,000, the SBA guarantee is 75%.
  • While the SBA has the ultimate authority in loan decisions, eligible lenders may be granted delegated authority to make loan decisions independently without SBA review.

SBA 7(a): Terms and Eligibility:

  • SBA 7(a) loans can be as high as $5 million.
  • Applicants must provide various documents, including articles of incorporation, business permits, and any records related to litigation, judgments, or bankruptcies, along with other relevant documentation.
  • Loans under $25,000 typically do not require collateral as per SBA guidelines.
  • For loans exceeding $350,000, the SBA requires lenders to secure collateral to the greatest extent possible, up to the loan amount.

Please note that specific terms and eligibility criteria for SBA 7(a) loans may be subject to additional details and guidelines established by the SBA. Consulting with the SBA or an authorized lender is recommended for a comprehensive understanding of the program.

Check the terms and requirements before applying for an SBA loan with a shelf company.

#8 SBA 504 Loan Program Overview:

  • The SBA 504 loan program is designed to promote economic development by providing small businesses with access to capital, facilitating job creation, and supporting business growth.
  • This initiative offers approved small businesses long-term, fixed-rate financing to acquire fixed assets for expansion or modernization purposes.
  • Funds from this program can be used for various purposes, including purchasing existing properties, constructing new ones, and more.

SBA 504: Terms and Eligibility:

  • Individuals holding a 20% or greater equity stake in a business are required to complete the necessary documentation.
  • This documentation includes an affirmation of not facing any felony charges.
  • In this program, the SBA contributes 40% of the total project costs, a participating lender contributes up to 50% of the total project costs, and the borrower contributes 10% of the total project costs.
  • In certain cases, the borrower may be required to contribute up to 20% of the total project costs.

Please note that specific terms and eligibility criteria for SBA 504 loans may be subject to additional details and guidelines provided by the SBA. It is advisable to consult with the SBA or an authorized lender for a comprehensive understanding of the program.

#7 SBA Microloans Program Overview:

  • SBA Microloan lenders are nonprofit organizations rooted in the community, possessing expertise in lending, management, and professional support.
  • The Small Business Administration (SBA) provides funding to designated intermediary lenders who oversee the Microloan program for eligible borrowers.
  • The primary objective of this program is to assist small businesses and certain nonprofit childcare centers in establishing and expanding their operations.

SBA Microloans: Terms and Eligibility:

  • Borrowers can access loans of up to $50,000 through the Microloan program network.
  • On average, a typical microloan amount is approximately $13,000.
  • Each intermediary lender sets its unique credit and loan criteria.
  • Typically, intermediaries may require some form of collateral and may also seek a personal guarantee from the business owner.

For more detailed information on SBA Microloans, you can visit the SBA website at sba.gov/oans-grants/see-what-sba-offers/sba-loan-programs/microloan-program%.

#6 Microloans Program Overview:

  • Microloans are loans tailored for small businesses, featuring low interest rates.
  • Typically, these loans are suitable for small or emerging businesses with limited capital requirements and minimal revenue history.
  • Microloans, as the name suggests, are smaller in scale compared to traditional bank loans.
  • These loans generally range from $500 to $50,000, making them accessible for smaller enterprises.

Microloans: Terms and Eligibility:

  • Microloan providers may have varying terms and conditions.
  • For instance, Kiva offers loans without charging any interest.
  • The Opportunity Fund specializes in providing loans to underserved small business owners from minority backgrounds, mothers, and those with low to moderate incomes.
  • Accion is an example of a lender that may require a co-signer.
  • It’s essential to review the specific terms and conditions of any microloan program that interests you.

#5 Term Loans Program Overview:

  • When thinking about borrowing money, banks are often the initial choice that comes to mind.
  • However, major banks typically approve only a quarter of the small business loan applications they receive.
  • Many alternative borrowing options come with higher interest rates compared to term loans.
  • Additionally, these alternatives are more likely to be suitable for larger loan amounts.

Term Loans: Terms and Eligibility:

  • Generally, banks tend to finance businesses with excellent financial records and nearly flawless credit histories.
  • It is highly likely that a thorough personal credit assessment will be required.
  • Collateral may also be necessary when applying for these types of loans.

#4 Alternative SBA Loans Program Overview:

  • Instead of SBA loans, private lenders are another option for borrowing.
  • These private lenders typically include individuals or banks.
  • Private lenders specialize in raising funds from individuals, and they use these funds to provide loans, often involving real estate.

Alternative SBA Loans: Terms and Eligibility:

  • Private lenders might have more flexibility when assessing qualifying income.
  • They may overlook historical issues if they are adequately explained.
  • Hard money loans are usually short-term, with durations typically ranging from 6 to 36 months.

#3 Financing for House Reselling:

  • If you already own a home in addition to the one you plan to flip, you have financing options.
  • One option is to utilize a Home Equity Line of Credit (HELOC) to access funds.
  • HELOCs offer low-interest funding since they are secured by your home.
  • If you’re purchasing a rental property, an Investment Property Line of Credit may be available.
  • This allows you to borrow against the equity in your investment property, similar to a HELOC.
  • The property serves as collateral once again.
  • To qualify for an Investment Property Line of Credit, you usually need to provide strong collateral.
  • Additionally, a history of successful real estate transactions is required.
  • Typically, you must have owned the property for at least one year before becoming eligible.

#2 Short-Term Bridge Loans:

  • A bridge loan is a brief financial solution designed to cover the gap between permanent borrowing and settling existing debts.
  • It provides immediate cash flow to borrowers, enabling them to meet their current obligations.
  • Bridge loans typically have a maximum duration of one year.
  • These loans tend to come with high interest rates and are frequently secured by assets like real estate or inventory.

Credit Suite Credit Line Hybrid:

  • The Credit Suite Credit Line Hybrid includes a term loan program.
  • Borrowers can add this bridge loan to the program if they meet eligibility criteria and are willing to use some or all of their financing as cash term loans.
  • The program comes with a fixed monthly payment.

Bridge Loan Terms and Qualifications:

  • The Credit Suite Program is a multi-account program, and multiple accounts must be prequalified.
  • Borrowers can access amounts ranging from $25,000 to $300,000 per applicant.
  • The annual percentage rate (APR) varies from 7% to 24%, depending on creditworthiness and selected terms.
  • Loan terms are available for 3, 5, or 7 years.
  • To qualify, applicants typically need a FICO score of 680 or higher and an estimated gross income exceeding $35,000.
  • Qualification is also influenced by your company’s debt-to-income ratio.

#1. Blanket Real Estate Loans

Blanket real estate loans, also known as blanket mortgages, are a specialized type of financing particularly useful for businesses involved in real estate. Here’s an overview of their key aspects:

  • Purpose and Use: Blanket loans are designed to finance multiple properties simultaneously. This is especially beneficial for businesses such as commercial tenants, industrial owners, building managers, and development firms that deal with multiple real estate properties.
  • Collateral: The properties being financed under a blanket mortgage act as collateral for the loan. This means that if the borrower defaults on the loan, the lender can seek to recoup their losses through these properties.
  • Absence of a Due on Sale Clause: A defining feature of blanket mortgages is that they don’t have a ‘due on sale’ clause. This allows the loan to remain in place even if one or more of the properties securing the loan are sold. The borrower must pay off the portion of the debt related to the sold property, but they don’t need to refinance the entire loan.
  • Loan Amounts: Generally, lenders of blanket mortgages don’t offer loans less than $75,000.
  • Term Lengths and Rates: The terms of these loans can vary widely, ranging from two to thirty years, with interest rates typically falling between 4% and 11%.
  • Balloon Payments: Borrowers may be required to make a balloon payment, a large, lump-sum payment, within 3 to 15 years after taking out the loan.
  • Loan Origination Fees: These fees typically range from 1% to 3% of the loan amount.

Blanket real estate loans are a powerful financial tool for businesses managing multiple properties, offering flexibility in terms of property sales and refinancing. However, they also require careful consideration due to aspects like balloon payments and significant loan origination fees.

BONUS #1 Second and Third Priority Revenue-Based Financing Loans

  • The order of priority becomes a consideration when borrowers engage in a practice known as loan stacking.
  • Loan stacking occurs when a business owner seeks additional funds while still having an outstanding loan or line of credit.
  • In such situations, entrepreneurs may secure a new line of credit from a different lender.
  • Priority determines the order in which claims against collateral will be satisfied in the event of a default or foreclosure.
  • Most lenders prefer to be the primary lender, but some may accept a secondary position in exchange for a higher interest rate.
  • Alternative lenders are often available as well.
  • When obtaining these loans, lenders often file a UCC (Uniform Commercial Code) form with the secretary of state’s office, creating an official record.

Terms and Qualifications for Second and Third Position Revenue-Based Financing Loans

  • First-position loans typically carry an average interest rate ranging from 11% to 15%.
  • Second and third position loans generally come with higher interest rates.
  • Many of these loans may require collateral, such as real estate, as security for funding.
  • The duration of a first-priority loan can vary from one to three years.

BONUS #2 Purchase Order Funding

  • This financing option is designed for businesses that receive substantial purchase orders or contracts but lack the necessary resources to fulfill them.
  • In this arrangement, a lender provides the funds required to complete the purchase order and, in return, receives a percentage of the transaction.
  • The company can then successfully fulfill its order or contract.
  • Purchase order financing involves a company lending you the necessary funds to meet your purchase orders, whereas accounts receivable financing involves a company buying your outstanding unpaid invoices.

Terms and Eligibility for Purchase Order Funding

  • Lenders typically assess your outstanding purchase orders that need fulfillment for approval.
  • Approval may be granted based on the validity of the purchase orders and the credibility of the suppliers you are dealing with, irrespective of personal credit history.
  • Interest rates typically range from 1% to 4%. In some cases, you may secure financing for up to 95% of your purchase order.

BONUS #3 Cash Flow-Based Financing

  • This type of financing involves extending a loan to a company, with the loan being supported by the anticipated cash flows of the business.
  • Cash flow, in this context, refers to the amount of cash that moves in and out of a company within a designated time frame.
  • Cash flow financing, also known as a cash flow loan, utilizes the cash generated by the business as the primary source for repaying the loan.