Financing

funding is key

Signing Check

Every entrepreneur, regardless of industry or trade, needs funding to launch their business.

How you fund your business is one of the earliest and most important decisions you will make as a small business owner. 

However, every business requires different kinds of funding, and understanding the different business financing options available to you can be tricky.

Planning for your immediate and long-term financial needs is key to your long-term success. 

Before you choose a financing option, make a list of all your financial needs. Do you need to improve your cash flow?  Does your business need long-term financing?

Business Financing Options

How will you use financing to grow your business? What is your personal and business credit history? As you answer these questions, you can consider two general types of financing: debt versus equity.

Person Writing

Debt-based financing is essentially a business loan. A lender provides working capital to a business who must then repay the funds, plus interest, over a set period of time.

 

To secure a loan, a business must usually provide some form of collateral that the lender takes if the loan isn’t repaid. Equity financing, on the other hand, is when a business owner gives a percentage of their company (shares) in exchange for financing. 

For most small businesses, debt-based financing is the best way to fund your company as you retain full control of the operation. There are many different types of loans to consider, from traditional bank loans, micro-loans, lines of credit, and so on.

Explore your Options

Regardless of how you want to finance your business, it’s important to explore different funding options before applying for a traditional business loan. Our top business financing picks can help you find a funding solution that will set you up for success.

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Best for: 

  • Commercial real estate financing.

  • Equipment leasing.

  • Unsecured line of credit.

  • Merchant cash advances.

Features:  

  • Quick and easy online application process;

  • Live customer service (yes, you can talk to an actual person!).

  • Wide range of commercial financing options are available.

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Best for: 

  • Term loans.

  • Line of credit.

  • Invoice financing.

  • PPP loans available.

Features:  

  • Requires 6 months in business and $120k annualized income.

  • Checking account available.

  • Quick and easy online application process, quick funding.

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Best for: 

  • Line of credit.

  • Invoice financing.

  • PPP loans.

Features:  

  • Integrates with multiple accounting software.

  • Easily apply online, funding within a day.

  • Easier to qualify for financing products, but may be more expensive.