Every business hits the moment where cash and opportunity don't line up: the walk-in cooler dies, the big order needs inventory up front, the second location won't wait. Here are the main funding tools, without the jargon.
Working capital loans
A lump sum repaid over a fixed term. Faster and lighter on paperwork than a bank loan, sized off your revenue. Best for defined needs with a clear payback — inventory buys, buildouts, seasonal ramp-ups.
Merchant cash advances (MCAs)
An advance against your future card sales, repaid automatically as a small slice of daily processing. The fastest option and the most forgiving on credit, because approval is based on your processing history. Cost is expressed as a factor rate — make sure you understand the total payback before signing anything.
Equipment financing
The equipment itself secures the loan, so rates are lower and terms match the life of the asset — ovens, lifts, machines, vehicles. You keep cash free while the equipment pays for itself.
Lines of credit
A reusable limit you draw on when needed and pay interest on only what you use. The best cushion for uneven cash flow — but usually the slowest to get approved.
How to choose
- Speed matters most: MCA or working capital loan
- Buying a specific asset: equipment financing
- Smoothing cash flow: line of credit
- Cheapest overall: whatever you qualify for with the strongest documents — compare total payback, not just the rate