small business financing

Everything You Need to Know About Small Business Financing

While obtaining funding as an entrepreneur is not always easy, there are methods to make it easier. These financing solutions support startups and entrepreneurs, and the companies that provide these solutions understand the challenges that small businesses face when it comes to traditional funding methods. 

To meet the needs of small business owners and entrepreneurs, small business funding providers afford the following flexible options that provide startups with immediate working capital.


GET QUOTE: Apply for small business financing in minutes, get approved in hours by Rapid Finance

Small business financing options

Small business loan

A small business term loan allows business owners to obtain short term financing to grow their existing business, receiving funds in one lump sum with flexible repayment terms.

Benefits of a small business loan include quick access to capital, no credit impact to obtain a quote and, once you receive funds, the elimination of short-term financial needs. You can then use the funds to upgrade your company’s technology, hire new employees, expand locations, consolidate your debt and more.

Merchant cash advance

A merchant cash advance, also known as a business cash advance, is financing based on your future credit card receivables. This variable payment is based on daily credit card sales.

The benefits of this type of small business financing include quick access to capital, no credit impact to get a quote and flexible payments based on daily sales rather than receiving a fixed amount.

Once you receive funding, you can use those funds to purchase new equipment, manage short term capital needs, purchase inventory or bridge payroll. 



Healthcare cash advance

For those startups in the healthcare industry, healthcare cash advance is financing based off your future insurance receivables, similar to a merchant cash advance. Of course, this type of financing is only applicable to those businesses in the healthcare industry.

Benefits to this type of financing include quick access to capital, elimination of short term financial needs and flexible payment based on future receivables instead of a fixed amount. 

Your funds can be used to purchase equipment, manage short term capital needs, purchase inventory or bridge payroll. 

Bridge loan

A bridge loan is a short-term loan you can apply for while your business secures more long-term financing. There are many benefits to a bridge loan. The application process is speedy, easy to manage, has flexible repayment terms and protects your startup’s cash flow. 

Once you’ve obtained a bridge loan, you can use the funds to pay closing costs and fees associated with long-term financing, or manage short-term capital needs. 

Line of credit

A line of credit is used for a business with short-term cash flow needs. The best part is, you only pay interest on what you actually borrow. You can access the set amount you borrow at any time for any need. 

Lines of credit are flexible, there are no hidden fees, and this type of funding provides quick access to capital. You can then use the funds to purchase new equipment or inventory, or manage short-term capital needs. 

SBA loan

Small Business Administration loans are partially guaranteed by the government, which eliminates some of the risk that a financial institution typically takes on when providing a loan. SBA loans provide long-term financing with low interest rates. 

Benefits include longer terms and low interest. You can use the funds to purchase inventory and equipment, as well as manage short-term capital needs. 

Invoice factoring

Invoice factoring allows you to sell your business invoices in exchange for an immediate cash advance.

This type of small business financing provides you quick access to capital, flexible payments, and the elimination of short-term financial needs. You can then use those funds to purchase new equipment or inventory, or manage short-term capital needs. 

Asset-based loan

An asset-based loan allows you to secure a loan based on your business’ assets, rather than credit or cash. 

This provides quick access to capital and affords you the ability to meet short-term financial needs. You can then use those funds to purchase new equipment, manage short term capital needs or purchase inventory.


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Commercial real estate loan

For those who choose to purchase or refinance their business property in order to finance their business, a commercial real estate loan may be right for you. Benefits include quick access to capital and the elimination of short-term financial needs. 

Unlocking capital quickly will allow you to purchase new equipment or inventory, and manage short-term capital needs. 

Secure your financing today

Once you know your options, small business financing becomes much less intimidating. 

Take advantage of the many opportunities that Rapid Finance has available for funding your business. They offer fast decisions and can deliver your loan within three business days. Contact Rapid Finance today and see how you can get the small business financing you need.

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