Term Loans:

• Short-Term Loans: Typically repaid within a year and used for immediate needs.
• Medium-Term Loans: Repaid over one to five years and used for larger investments.
• Long-Term Loans: Repaid over more than five years and often used for major investments or expansion.

Lines of Credit:

• Provides a revolving credit limit that the business can draw from as needed. Interest is paid only on the amount borrowed, not the total credit limit.

SBA Loans:

• 7(a) Loans: General-purpose loans backed by the Small Business Administration (SBA).
• 504 Loans: Used for purchasing fixed assets like real estate or equipment.
• Microloans: Smaller loans intended for startups or businesses in underserved communities.

Equipment Financing:

• Specifically for purchasing or leasing equipment. The equipment itself often serves as collateral.

Invoice Financing:

• Allows businesses to borrow against outstanding invoices to improve cash flow. Includes factoring (selling invoices) and invoice discounting (borrowing against invoices).

Merchant Cash Advances:

• Provides a lump sum of cash in exchange for a percentage of future credit card sales or daily bank deposits. This type of financing can be expensive due to high fees and interest rates.

Business Credit Cards:

• Offer a revolving credit line for daily expenses and can be a flexible way to manage short-term financing needs.