Every way to fund your business, honestly compared

The right funding grows your business; the wrong funding keeps you stuck — or worse, starts a debt spiral. Here’s the honest map of the options, what each is for, and what lenders typically want to see. (Every lender differs; treat the qualifications as ballpark, not gospel.)

Equipment financing

A loan or lease specifically for equipment — mowers, trucks, trailers, skid steers. The equipment itself backs the loan, which is why this is often the easiest financing for a newer business to land.

• Typical qualifications: Even new businesses qualify; credit scores from the low 600s; an invoice or quote for the equipment
• Best for: Getting revenue-producing machines without draining cash — see also lease vs. finance vs. cash

Business line of credit

A revolving pool you borrow from as needed — like a credit card with better rates. Pay interest only on what you use; repay and it’s available again.

• Typical qualifications: Several months in business, steady revenue, decent credit
• Best for: Smoothing seasonal cash flow and covering surprises

Working capital loan

Short-term financing for everyday operations — payroll, fuel, materials — when cash is tight or opportunity knocks.

• Typical qualifications: A few months in business and consistent monthly sales; credit often flexible
• Best for: Bridging the gap between doing the work and getting paid

SBA loan

Government-backed loans with the best rates and longest terms (up to 25 years). The trade: heavy paperwork, a longer wait, and a personal guarantee.

• Typical qualifications: Good credit, roughly two years in business, solid financials and a business plan
• Best for: Major expansions you can plan months ahead

Term loan

A lump sum repaid in fixed installments over a set period — the classic loan, from banks or (faster, pricier) online lenders.

• Typical qualifications: Banks want strong credit and history; online lenders accept less but charge more
• Best for: A single defined purchase or project with a known payoff

Business credit cards

Quick to get, convenient, often with rewards — and brutal if you carry a balance.

• Typical qualifications: Personal credit around 680+, steady income
• Best for: Small short-term purchases you’ll pay in full — and building credit history

Microloans

Smaller loans (typically under $50,000) from nonprofits and community lenders, often with coaching attached.

• Typical qualifications: A solid plan matters more than years in business; community impact helps
• Best for: Startups and first steps that banks won’t touch yet

Invoice (A/R) financing

Advance cash against invoices your commercial clients haven’t paid yet.

• Typical qualifications: Real invoices to creditworthy customers; typically higher revenue businesses
• Best for: Commercial-contract businesses waiting 30–60 days on payment

And the free money

Grants never get repaid — start with our grant database. And before any borrowing, build business credit so the business can qualify on its own name.

A caution: merchant cash advances (daily-repayment advances against future sales) are the fastest money on the market and routinely the most expensive. Read every term, and talk to someone on your side first.

Watch the full breakdown

Prefer video? Everything in this article, straight from Taucier — and there’s more on our YouTube channel.

Questions about how this applies to your business? Book a free discovery call — thirty minutes, no cost, no jargon. Or head back to all free resources.