How do I know what type of business funding I need?

The right type of business funding depends on five factors: (1) time in business — most traditional lenders require 2+ years; (2) monthly revenue — determines how much you can borrow and repay; (3) credit score — affects which products you qualify for and at what rates; (4) urgency — if you need capital in 24-72 hours, MCA or merchant services are the only options; (5) use of funds — equipment financing is cheapest for equipment, invoice factoring is cheapest for A/R gaps. Use the interactive decision tree above to get a personalized recommendation.

What is the cheapest type of small business financing?

In order from cheapest to most expensive: (1) Small business grants (free — but rare and competitive); (2) SBA loans — 10-13% APR, requires 2+ years and strong credit; (3) CDFI loans — 6-20% APR, serves underserved borrowers; (4) Equipment financing — 6-18% APR, collateralized by equipment; (5) Business line of credit — 8-30% APR; (6) Invoice factoring — 1-5%/month of invoice value; (7) Business credit card — 18-30% APR; (8) Merchant cash advance — 60-120% true APR. The cheapest option you qualify for, given your timeline, is almost always the right answer.

How quickly can a small business get funding?

Speed varies widely by product: Merchant cash advance (24-72 hours), online business lender (1-3 days), invoice factoring (1-3 days per invoice), business line of credit - existing (same day draw), equipment financing (3-10 days), business line of credit - new (1-4 weeks), SBA Express loan (5-10 business days), SBA 7(a) loan (30-90 days), CDFI loan (2-8 weeks). If you need capital in under 72 hours, MCA is typically the only product that can deliver.

How do I know which business funding option is right for me?

The most important factors are your FICO score, time in business, and how quickly you need the money. If you need capital in 24–48 hours and have a 500+ FICO, MCA is typically the fastest path. If you can wait 60+ days and have 680+ FICO, an SBA loan offers lower cost. Use the decision tree above to map your specific situation.

Can I qualify for business funding if I have bad credit?

Yes. MCA approves at 500 FICO minimum and evaluates revenue more heavily than credit score. Revenue-based financing options like MCA were specifically designed for businesses that do not qualify for traditional bank products.

Business Funding Decision Tree

How long has your business been operating?

Time in business affects which products you qualify for more than almost any other factor.

What is your average monthly revenue?

Based on your last 6 consecutive months of bank deposits.

What is your personal credit score (approximate)?

Your personal FICO score affects rates and eligibility for most business lending products.

How quickly do you need the funds?

Urgency is the biggest single factor in which products are actually available to you right now.

What do you need the funding for?

Use of funds determines which product type is the best structural fit — not just which you can access.

Your Personalized Recommendation

Best Fit

Typical Cost

—

Speed

—

Min. Credit

—

Also Consider

Apply Now →

Full Financing Options Comparison

Every major type of small business financing, ranked by cost — with minimum requirements for each.

Product	Typical APR / Cost	Speed	Min. Time in Biz	Min. Credit	Min. Revenue	Collateral
Small Business Grant	Free	2–6 months	Varies	Varies	Varies	None
SBA 7(a) Loan	10–13%	30–90 days	2+ years	640 FICO	$50K+/yr	Required
CDFI Loan	6–20%	2–8 weeks	6–12 months	550 FICO	$15K+/yr	Sometimes
Equipment Financing	6–18%	3–10 days	12 months	600 FICO	$30K+/yr	Equipment
Business Line of Credit	8–30%	1–4 weeks (new)	12 months	660 FICO	$50K+/yr	Sometimes
Invoice Factoring	12–60%/yr est.	1–3 days	3 months	No min.	B2B invoices	Invoices
Business Credit Card	18–30%	Minutes (if approved)	None	640 FICO	None	None
Online Term Loan	20–60%	1–3 days	12 months	580 FICO	$50K+/yr	Sometimes
Merchant Cash Advance	60–120%+ (true APR)	24–72 hours	6 months	500 FICO	$4K–$6K+/mo	None

MCA APR shown as true IRR-based declining balance rate. Convert any factor rate to APR →

Frequently Asked Questions

How do I know what type of business funding I need?: The right product depends on five factors: time in business, monthly revenue, credit score, urgency, and use of funds. The interactive tool above weighs all five and returns a ranked recommendation. The core logic: urgency often forces your hand (MCA is the only 24-72 hour option), and use of funds determines structural fit (equipment financing is always cheaper than MCA for equipment when time allows).

What is the cheapest type of small business financing?: From cheapest to most expensive: grants (free), SBA loans (10-13% APR), CDFI loans (6-20%), equipment financing (6-18%), business line of credit (8-30%), invoice factoring (12-60% annualized), business credit card (18-30%), online term loan (20-60%), merchant cash advance (60-120%+ true APR). Use the cheapest product you qualify for given your timeline.

How quickly can a small business get funded?: Speed by product: MCA (24-72 hours), invoice factoring (1-3 days), online lender (1-3 days), equipment financing (3-10 days), LOC draw on existing line (same day), new LOC (1-4 weeks), SBA Express (5-10 business days), SBA 7(a) (30-90 days). If you need capital under 72 hours, MCA is typically the only option.

Can I get a business loan with bad credit?: Yes — several products serve borrowers with challenged credit. MCAs approve with 500+ FICO, CDFIs serve 550+ FICO, and invoice factoring has no minimum credit score (underwritten on your client's creditworthiness). The trade-off is cost: lower credit means higher rates and fewer options. Building credit over 12-24 months while using accessible products is usually the right long-term strategy.

Not Sure Which Path Is Right? Talk to T.A.G.

We will tell you what you qualify for across multiple products — including options besides MCA — before you commit to anything.

Apply Now → 330-238-3003

How to Choose Business Funding: Step-by-Step Decision Guide

Answer these 5 questions in order to identify your optimal funding path.

Step 1: How long has your business been operating?
Under 6 months: personal financing only. 6-12 months: MCA or microloans. 1-3 years: MCA, fintech loans, SBA Express. 3+ years: full range including SBA 7(a), bank term loans, LOC, equipment financing.
Step 2: What is your average monthly revenue?
Under $10K/month: MCA typically unavailable; consider microloans. $10K-$30K/month: MCA advance up to $30K-$45K. $30K-$100K/month: MCA $25K-$150K, fintech loans available. Over $100K/month: full MCA range ($50K-$500K+), bank products available.
Step 3: What is your personal credit score?
Under 500: MCA decline likely. 500-579: MCA at higher factor rates (1.40-1.50). 580-679: MCA, fintech term loans, business credit cards. 680+: adds SBA eligibility. 720+: best factor rates, conventional bank products.
Step 4: How quickly do you need the funding?
Same day or next day: MCA is the primary option. 1-5 business days: MCA or fintech term loan. 1-4 weeks: fintech LOC or equipment financing. 1-3 months: SBA Express, credit union. 3-6 months: SBA 7(a) or conventional bank loan.
Step 5: What will you use the funds for?
Equipment: equipment financing (8-15% APR, asset-secured). B2B invoice gaps: invoice factoring (1-3%/month). Seasonal inventory: MCA is well-suited. General working capital: LOC if available, MCA if urgent. Operating losses: no financing product fixes a structural loss.

Business Funding Product Selector — Qualification Requirements and Best-Fit Scenarios (2026)
Product	Min FICO	Min TIB	Funding Speed	Best For
MCA	500	6 months	24-72 hours	Urgent capital, no collateral, fast ROI use case
Business LOC (Online)	600-640	6 months	1-3 days	Recurring cash flow gaps, revolving needs
Fintech Term Loan	580-620	12 months	1-5 days	Longer-term capital at lower cost than MCA
SBA Express	650	2 years	1-3 weeks	Up to $500K at SBA rates, faster than 7(a)
SBA 7(a)	680	2 years	4-12 weeks	Largest amounts ($500K+), lowest rates, long terms
Equipment Financing	600	6 months	1-5 days	Equipment only; asset-secured, 8-15% APR
Invoice Factoring	N/A	N/A	1-3 days	B2B invoices; advance 85-95% of AR face value

Business Funding Decision Tree

Not Sure Which Path Is Right? Talk to T.A.G.

Explore Your Options

See If Your Business Qualifies

How to Choose Business Funding: Step-by-Step Decision Guide