What is small business financing?
What is small business financing?
Business financing refers to when a small business receives financing, such as a business loan, merchant cash advance or line of credit that is used solely for business purposes. Many business purposes are not just limited to purchasing new inventory, machinery or even paying off debt. Business financing can also be used for anything business related such as marketing efforts, location expansion, and general working capital.
Most businesses whether large or small heavily rely on small business financing to help meet a lot of their business needs. We understand how small businesses operate and that’s why our team created business financing products to help meet those needs in a simple and fast way. Our loan products have a quick and easy application process, easy to understand terms and flexible payment options so that small businesses can obtain the capital they need ASAP. For those businesses that have a lot of receivables, credit card sales or are a seasonal business, our merchant cash advance product might be a great fit for your business. If you want your business to have a safety net by having financing available as easy as a draw away, a line of credit might be the perfect business financing solution. It all starts with a quick application so we can learn more about your small business. If we are a fit and your business is fully approved, our team will work quickly to send over the funds.
Business Financing Options
Business Financing Options
Great for receiving funds in one lump sum with fixed payments and a fixed term. Small business loans are ideal for bridging a gap or fluctuation in business cash flow, for a one-off purchase of equipment, to capitalize on an opportunity or complete a big job.
Loan Amount
Loan amounts starting at $5,000 up to $1 million
Business Loan Terms
Payment Frequency
Fixed Payments
Key Benefits
Easy application process, fixed payments, longer terms and access to higher dollar financing amounts
Cost and Fees
Variable payments based on a portion of your credit card sales or other receivables. An advance is great for businesses that want more flexibility as the advance has variable payments based on credit card sales or receivables.
Advance Amount
Estimated Completion Date**
Payment Frequency
Variable automatic payments based on the business receivables
Flexible Payments
Key Benefits
Cost and Fees
The receivables are purchased at a discounted price and fees may be charged and deducted from the advance amount
**An estimated completion date is calculated based on the estimated time it will take the business to deliver the receivables (which will vary based on the business’ performance). These estimated completion dates typically range between 3 months up to 18 months, but this is only an estimate.
A business line of credit is ideal for repeat cash flow needs. Businesses have access to the approved amount whenever they need it, which makes it great for those unexpected expenses.
Available funds
Credit limits starting at $5,000 up to $250,000
Payment Terms
Payment Frequency
Flexible Payments
Key Benefits
Cost and Fees
A short term loan available to businesses while they secure permanent financing or remove an existing financial obligation. Ideal for businesses that need to meet current obligations with immediate cash flow.
Loan Amount
Loan Terms
Payment Frequency
Fixed Payments
Key Benefits
Cost and Fees
An SBA loan is a long-term, low fee small business loan partially guaranteed by the government that can be used for business purposes
Loan Amount
Loan Terms
Payment Frequency
Invoice factoring, also known as accounts receivables factoring, allows businesses to turn pending invoices into immediate funds
Advance Amount
Easy Application
Simple Process
An SBA loan is a long-term, low fee small business loan partially guaranteed by the government that can be used for business purposes
Loan Amount
Loan Terms
Payment Frequency
Invoice factoring, also known as accounts receivables factoring, allows businesses to turn pending invoices into immediate funds
Advance Amount
Easy Application
Simple Process
Asset based loans are based on company assets that are used as collateral to secure business financing. This allows you to borrow based on company assets on an ongoing basis to cover expenses or investments.
A loan to help finance the purchase, development, or repair of land, buildings, offices, and other commercial properties.
Loan Amount
Loan Terms
Payment Frequency
Loan Amount
Loan Terms
Loan terms starting as low as 5 years ranging up to 20 years
Payment Frequency
Monthly payments from an account on file
Asset based loans are based on company assets that are used as collateral to secure business financing. This allows you to borrow based on company assets on an ongoing basis to cover expenses or investments.
Loan Amount
Loan amounts starting at $50,000 and range up to $10 million
Loan Terms
Payment Frequency
A loan to help finance the purchase, development, or repair of land, buildings, offices, and other commercial properties.
Loan Amount
Loan Terms
Payment Frequency
Important considerations for small business financing
For businesses that accept credit card payments, have receivables or are seasonal, a merchant cash advance is a great option as it is based off of the businesses’ credit card sales or other receivables, so payments are flexible. If a business is looking for a higher financing amount and fixed payments, than a small business loan may be a better solution for the business.
How long you need the capital for can guide you towards the finance option that meets that time frame. Merchant cash advances and lines of credit are the most flexible when it comes to short term financing. Small business loans are great for long term financing as you may have up to 60 months to repay.
While some small business financing does take into account your credit score, the majority of commercial financing companies rely more on the performance of your small business. Certain financing products, such as a merchant cash advance (which payments are based on future credit card and other receivables) typically allow for a lower credit score, where as a line of credit might require a higher credit score.
Unexpected costs can be frustrating and stressful. Lines of credit could be the best business financing option as you have access to a pre-approved amount whenever you need it. No need to take more than you actually need for your expenses.
Important considerations for small business financing
For businesses that accept credit card payments, have receivables or are seasonal, a merchant cash advance is a great option as it is based off of the businesses’ credit card sales or other receivables, so payments are flexible. If a business is looking for a higher financing amount and fixed payments, than a small business loan may be a better solution for the business.
How long you need the capital for can guide you towards the finance option that meets that time frame. Merchant cash advances and lines of credit are the most flexible when it comes to short term financing. Small business loans are great for long term financing as you may have up to 60 months to repay.
While some small business financing does take into account your credit score, the majority of commercial financing companies rely more on the performance of your small business. Certain financing products, such as a merchant cash advance (which payments are based on future credit card and other receivables) typically allow for a lower credit score, where as a line of credit might require a higher credit score.
Unexpected costs can be frustrating and stressful. Lines of credit could be the best business financing option as you have access to a pre-approved amount whenever you need it. No need to take more than you actually need for your expenses.
Business Funds by Purpose
Business Funds by Purpose
All the businss financing options we offer here at Rapid Finance can suite any of your needs.
*Small Business Financial Solutions, LLC offers term loans (pursuant to its California Lenders License No. 603-I855) and factoring in California. Small Business Financial Solutions, LLC and Rapid Financial Services, LLC offer term loans, lines of credit and factoring outside of California. RFS Business Funding, LLC arranges term loans in California (pursuant to its California Finance Lenders License No. 603-J299) and arranges term loans, SBA loans, lines of credit, factoring, asset based loans, commercial real estate loans and business credit cards outside of California.