You can secure financing with these 9 types of business loans.

Term Loans
Term Loans are a lump sum of cash that you repay over a fixed term through monthly principal and interest payments.


  • Lower interest rates
  • Potential for early loan repayment
  • Potentially slow funding timeline


  • Strict eligibility requirements
  • Rigid repayment schedule
  • Potentially slow funding time
SBA Loans
Small Business Administration (SBA) loans are enticing because they are a lower-cost government-backed option.


  • Broad eligibility requirements
  • Businesses typically not approved for traditional loans could qualify
  • Capped Interest Rates


  • Lengthy Application Process Borrowers typically must
  • Make a down payment Low-credit applicants
  • Generally not approved
Business Line of Credit
A business line of credit is a revolving credit limit that you generally access through a checking account. Similar to a credit card.


  • Only pay interest on what you use / great if you’re unsure on how much you need
  • Great tool to balance cash flow
  • Low risk way to build business credit


  • Extra fees
  • Not a good source of startup funding
  • Low borrowing limits
Equipment Loans
Equipment loans are designed to help you pay for expensive machinery, vehicles, and equipment.
Commercial Real
Estate Loans
Can help you finance new or existing property like an office, warehouse, or retail space.
Small loans typically providing $50k or less offered through nonprofits and the SBA.
Merchant Cash Advances
The fastest way for existing businesses to obtain funding. Requires you to borrow against your future sales and repay with a portion of daily or weekly income.
Franchise Loans
For franchise businesses needing capital for upfront franchise fees.
Invoice Financing
With invoice financing, you can use unpaid invoices as collateral to get an advance on the amount you’re owed.


Grant funding can be a great source of startup capital if you qualify. Although grants don’t have to be repaid like a business loan, they are certainly not free as they can take a lot of work to get.

No Repayment

Grants are essentially “free money” that doesn't
require repayment making it virtually risk free.

Gain Credibility

Successfully receiving a grant can provide business coverage, visibility,
and credibility which can be even more valuable than the money itself.

Waterfall Effect

Once you’ve been awarded one grant, you are more
likely to receive others since other organizations will
see you as a reliable and credible candidate.

Strings Attached

Grants require you to be very specific about how you are using the money and
can sometimes come with restrictions and conditions that need to be met once
you receive it. Be wary about these types of contingencies.


Despite investing a significant amount of time and effort into a grant
opportunity, receiving one is never a guarantee. Some grants receive
hundreds and even thousands of applications.


Grants require a significant time investment involving
lots of research and paperwork.

Major Grant Categories

  • Minority owned grants
  • Woman owned grants
  • Veteran owned grants
  • Government grants
  • Research grants
  • Non-Profit Grants


Raising funding from investors, also referred to as venture capital, is a form of private equity and is a type of financing that investors provide to startups and businesses that they believe have growth potential. In return for the capital, businesses provide investors a percentage of ownership in the business.

Types of investors include:

Capitalists (VCs)

A VC is a private equity investing firm that provides capital to companies with high growth potential in exchange for an equity stake. Funding amounts can vary greatly.


Angel investors are smaller, often individual investors who are interested in smaller amounts of seed funding. Typically providing under $500k.

Friends &

Friends and family funding is a common source of startup capital typically providing smaller amounts per individual who are primarily interested in supporting your business.


Accelerator programs are programs that give businesses access to mentorship, investors, funding, and other types of support. Typically accelerator programs focus on startups developing new innovative products, services, and technologies. There are hundreds of accelerator programs across the US ranging in size, focus, and offerings.


One of the most famous startup accelerator programs. Each company is given $120,000 in funding annually, with the startups accelerated by Y Combinator totaling over $100 billion in value.
  • High Growth Startups
  • Tech Startups
  • Seed-Stage
Members of this accelerator can expect access to capital, mentorship, and more. Techstars also hosts Startup Week and Startup Weekend, two impactful events for the startup community to accelerate their companies quickly.
  • High Growth Startups
  • Tech Startups
  • First time entrepreneurs
500 Startups
500 Startups, the venture capital firm specializing in early and seed-stage companies of various industries.
  • Tech Startups
  • Early-Stage Startups
  • High-growth Startups
Google Startup
Global program, each composed of 10 to 15 startups that work together to help each other accomplish their entrepreneurial goals. Additionally, this accelerator offers one-on-one mentors and a tailored experience for each company to ensure each startup’s individual needs are met.
  • High Growth Startups
  • Tech Startups
  • Seed-Stage


Intense application processes involving various rounds of applications, pitches, and in-person interviews.

Some accelerators expect full time commitment during the program.

Accelerators provide varying amounts of funding and funding terms such as convertible notes, loans, and equity investments.

Accelerator programs are very competitive but can bring startups immense opportunities, capital, and prestige.