Funding options

Understand the categories of business funding before you apply

Every business has a different mix of needs, history, and timeline, and no single funding product fits every situation. The six overviews below explain how each category generally works, what it's commonly used for, and the questions worth asking before you commit to any provider.

These are educational starting points, not a recommendation for any specific business.

Side-by-side overview

Category	Typical purpose	Repayment model	Documentation	Common trade-off
Business Credit Cards	Everyday operating expenses	Revolving, statement-based	Low to moderate	High APR if balance carried month to month
Bank Lines & Term Loans	Working capital, growth investment	Fixed or revolving installments	Moderate to high	Strong credit and documentation typically required
SBA Financing	Long-term capital, equipment, real estate	Structured term payments	High: extensive documentation	Longer timeline; detailed underwriting
Equipment Financing	Vehicles, tools, machinery	Fixed payments; asset as collateral	Moderate	Secured by the equipment; asset risk if business closes
Invoice Factoring	B2B businesses with outstanding receivables	Advance repaid when client pays invoice	Moderate; verifiable B2B invoices required	Fees can compound; not available without B2B invoices
Revenue-Based Financing	Short-term cash flow needs	Daily or weekly % of revenue	Low to moderate	Effective total cost can be very high; review carefully

Revenue-based financing may carry a high effective total cost. Review total repayment, not just the daily factor, before proceeding.

Business Credit Cards

Everyday operating expenses

Repayment: Revolving, statement-based

Trade-off: High APR if balance carried month to month

Bank Lines & Term Loans

Working capital, growth investment

Repayment: Fixed or revolving installments

Trade-off: Strong credit and documentation typically required

SBA Financing

Long-term capital, equipment, real estate

Repayment: Structured term payments

Trade-off: Longer timeline; detailed underwriting

Equipment Financing

Vehicles, tools, machinery

Repayment: Fixed payments; asset as collateral

Trade-off: Secured by the equipment; asset risk if business closes

Invoice Factoring

B2B businesses with outstanding receivables

Repayment: Advance repaid when client pays invoice

Trade-off: Fees can compound; not available without B2B invoices

Revenue-Based Financing

Short-term cash flow needs

Repayment: Daily or weekly % of revenue

Trade-off: Effective total cost can be very high; review carefully

GrowLocal Capital is not a lender and does not make credit decisions. Funding products are offered by independent providers and are subject to their underwriting, terms, availability, and applicable requirements. GrowLocal Capital may receive compensation from certain providers when a referred business obtains or purchases a product. No approval, rate, term, introductory period, or funding amount is guaranteed.

Not sure where to start?

The readiness assessment gives you an honest picture of which categories may be worth exploring for your business.

Check My Funding Readiness