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The financing desk

Business Funding

Find the capital that fits the business you’re building.

Business loans, lines of credit, SBA financing and other funding routes, explained through the decisions that matter: purpose, cash flow, cost and the terms behind the offer.

By Motenza Editorial

How to choose a business loanWhat to prepare before applying
Business financial records and a project document package on an executive desk

Start with what the money needs to do.

Compare business funding options.

Open Motenza Advisor

Begin with the use of funds, then compare the repayment structure. The cheapest headline rate can still be a poor fit for the timing of your cash flow.

A practical comparison of financing structures
Funding routeWhat it can help fundWhat to examineRead further
Business term loan
A defined purchase, investment or project budget, repaid over an agreed term.
Net proceeds, total payments, payment frequency, collateral and early repayment terms.
Explore the guide
Business line of credit
A recurring cash gap where borrowing and repayment follow the operating cycle.
Draw and maintenance fees, renewal conditions, variable rates and any clean-up requirement.
Explore the guide
Working capital financing
Inventory, payroll or another operating need with a clear repayment source.
Whether collections can support the payment schedule even in a slower month.
Explore the guide
Equipment financing
Machinery, vehicles or equipment used in the business.
Deposit, useful life, maintenance, ownership at the end and the cost of a lease alternative.
Explore the guide
SBA 7(a) loan
Eligible US business uses, including working capital, equipment and changes of ownership.
Current eligibility, permitted use, lender requirements and the complete project budget.
Explore the guide
SBA 504 financing
Qualifying major fixed-asset projects through a Certified Development Company.
Project eligibility and owner contribution. SBA 504 cannot fund working capital or inventory.
Explore the guide
Invoice financing & factoring
Financing tied to unpaid customer invoices; the structure determines who collects payment.
Recourse, customer notification, reserves, service fees and responsibility for disputed invoices.
Explore the guide
Grants & community programs
Specific eligible activities or local programs with their own application rules.
Open intake, eligible spending, matching funds, reimbursement timing and reporting obligations.
Explore the guide

Program references cover the United States. Eligibility, terms and available products depend on the provider and jurisdiction. Official SBA program sources are linked below.

Beyond the headline rate

Compare the whole offer.

Put competing offers on the same sheet: the same amount of usable cash, the same spending purpose and the actual payment dates.

Understand the cost of capital
Cash you receive
Start with net proceeds after withheld fees, reserves or existing debt payoffs.
Cash you repay
Record the full payment schedule, interest or finance charges and every mandatory fee.
Conditions you accept
Read guarantees, collateral, renewal, default and early repayment provisions.
Room for a slower month
Test lower collections or higher costs before committing to another fixed obligation.

Run the numbers before you commit.

All calculators

Change the assumptions to match your business. These tools are planning models; they do not quote lender terms or determine approval.

Planning tool

Business loan payment

Model a monthly payment and total interest using your own loan assumptions.

Planning tool

Repayment capacity

Explore debt service against cash available for repayments.

Planning tool

13-week cash flow

Map collections, spending and the week a cash shortfall could appear.

Planning tool

Break-even sales

Test how pricing, variable costs and fixed spending change the sales target.

The application notebook

Prepare a clear funding case.

A useful application explains the amount, purpose and repayment source. Keep a consistent set of records and confirm the provider’s exact requirements before submitting sensitive documents.

Open the financing checklistGet the owner’s field guide
  • Use of fundsProject budget, supporting quotes, timing and your own contribution.
  • Financial recordsCurrent financial statements, tax records and bank statements requested by the provider.
  • Existing obligationsDebt balances, payment schedules and any guarantees already in place.
  • Ownership and operationsBusiness identity, ownership details and the records relevant to this financing route.
  • Repayment planA cash forecast with a downside scenario and the assumptions behind expected collections.

The business funding reading room.

All guides

50 articles

Build a 13-week cash-flow planReview business loan requirementsResearch small-business grants

Local context

Research funding where you operate.

Our city and state resources connect local business context with public program references. A listed program is a research lead; check intake and eligibility with its administrator.

Business funding questions, answered.

How do I choose the right business funding option?

Start with what the money will pay for, when it will be needed and how it will be repaid. A one-time equipment purchase and a recurring gap between invoices and collections call for different comparisons. Review the full payment calendar and terms before deciding.

Read the business loan guide
What do lenders look at in a business funding application?

Requirements vary by lender and product. Prepare current financial records, a debt schedule, ownership information and an explanation of the use of funds. Cash-flow assumptions should connect to actual trading results. Ask the provider for its product-specific checklist.

Explore application requirements
Can a startup use the same financing routes as an established business?

A startup may have less operating history to demonstrate repayment. Build a startup budget, separate personal and business obligations and check each program’s actual eligibility. Equity, owner contributions, community lending and qualifying programs involve different costs and responsibilities.

Build a startup cost budget
Is a factor rate the same as an APR?

A factor rate describes a repayment multiple, while an annual percentage rate expresses cost on an annual basis under its calculation rules. Comparing the two directly can be misleading. Ask for usable proceeds, all fees and the actual payment dates before comparing offers.

Understand factor rate vs. APR

Sources & editorial approach

Our guides explain financing structures and the questions behind a decision. Program details should be checked against the original source. We do not rank lenders by a promised approval rate or give individual suitability advice.

  • SBA loan programsOfficial overview and lender-specific eligibility.
  • SBA 7(a)Permitted uses, eligibility and how to apply through a lender.
  • SBA 504Fixed-asset financing and excluded uses.
  • SBA microloansCommunity intermediaries and permitted spending.
  • SBA grantsSpecific programs and their eligibility, rather than general-purpose funding.
Editorial standardsDisclosuresRequest a correction