The Business Owner's Guide to Funding

“90% of business owners only know about term loans and MCAs. There are 10 products — and the right one depends on your situation, not what a broker wants to sell you. This guide covers all of them.”

— Bobby Friel, Basecamp Funding - Founder

What it is: Government-backed loans with the longest terms and most competitive structures. The SBA guarantees a portion, so lenders take less risk — and pass that savings to you.

Best for: Established businesses (2+ years) that need $50K-$5M and can wait 30-90 days for funding.

When to avoid: You need money fast — SBA loans take 30-90 days.

What it is: Traditional fixed-amount loans from banks with set monthly payments. You borrow a lump sum and pay it back over a defined period with interest.

Best for: Businesses with strong credit (680+), 2+ years in operation, needing $50K-$500K with predictable repayment.

When to avoid: You need revolving access or your credit is below 680.

What it is: Same structure as bank term loans but issued by online lenders. Faster approval, less paperwork, and more flexible credit requirements — but typically shorter terms and higher costs.

Best for: Businesses with 1+ year, $100K+ revenue that need $10K-$500K faster than traditional banks can deliver.

When to avoid: You qualify for SBA or bank terms — online loans cost more.

What it is: A revolving credit line you draw from as needed. Like a credit card for your business, but with better rates and higher limits. Pay interest only on what you use.

Best for: Businesses with 1+ year and $100K+ revenue that need flexible, ongoing access to working capital.

When to avoid: You need a one-time lump sum — a term loan is cheaper for that.

What it is: Loans or leases specifically for purchasing business equipment. The equipment itself serves as collateral, so approval is easier and rates are typically lower than unsecured options.

Best for: Any business buying equipment worth $10K+ that wants to preserve cash flow and potentially deduct the cost under Section 179.

When to avoid: The equipment depreciates faster than the loan term.

What it is: Sell your outstanding invoices to a factoring company and get 80-90% of the value upfront. They collect from your customers and send you the rest minus a small fee.

Best for: B2B businesses (construction, staffing, manufacturing, logistics) with $50K+ in monthly receivables and reliable commercial customers.

When to avoid: Your customers pay on time and you don't have cash flow gaps.

What it is: Receive a lump sum and repay through a fixed percentage of daily or weekly revenue. Payments flex with your sales — slower months mean smaller payments.

Best for: Businesses with $10K+/month in revenue that want repayment to flex with their sales cycle.

When to avoid: Your revenue is inconsistent or declining — you still owe the full amount.

What it is: A lump sum in exchange for a percentage of future credit card or debit card sales. Not technically a loan — it's a purchase of future receivables. Fastest funding available, but most expensive.

Best for: Businesses with $5K+/month in card sales that need capital in 24-48 hours and can't qualify for other products.

When to avoid: You have time to explore other options — MCA is the most expensive product on this list.

What it is: Financing for purchasing, refinancing, or renovating commercial property. Longer terms and lower rates because the property serves as collateral.

Best for: Established businesses or investors looking to purchase, refinance, or develop commercial real estate.

When to avoid: You're leasing and don't need to own — or you need the capital in less than 60 days.

What it is: Funding based on confirmed purchase orders from creditworthy customers. The PO itself serves as collateral — the lender advances you money to fulfill the order.

Best for: Manufacturers, distributors, and wholesalers with confirmed POs from creditworthy customers and margins above 20%.

When to avoid: Your margins are below 20% — PO financing fees can eat into thin margins.

What's available: Business credit cards, microloans, personal guarantees, and revenue-based financing (if you have $5K+/month). Most traditional lenders won't fund below $25K.

Best move: Build revenue first. Even 6 months of $10K/month bank deposits opens up options. A small-town restaurant in Texas might start with a $15K equipment lease for their first commercial oven.

What's available: Online term loans, business lines of credit, equipment financing, MCA, and revenue-based financing. This is where the marketplace advantage kicks in — multiple lenders competing for your business.

Best move: Compare at least 3 offers. A landscaping company in California needing a $60K truck should compare an equipment loan vs. a term loan vs. a line of credit. Use the Loan Cost Calculator to see the true cost difference.

What's available: SBA loans, bank term loans, larger lines of credit, invoice factoring, and equipment financing. At this level, SBA loans become highly competitive if you have the time.

Best move: If you can wait 30-90 days, start the SBA process. While you wait, use a working capital line as a bridge. Many businesses stack both.

What's available: SBA 504 loans, large term loans, commercial real estate, PO financing, and multi-product packages. At this level, you're often combining products — an SBA loan for the building, equipment financing for machinery, and a line of credit for operations.

Best move: Work with a marketplace that can structure the financing across multiple products and lenders. One application, one advisor, multiple funding sources.

What's available: Capital stacking — combining multiple products across multiple lenders into a single structured package. SBA + conventional + equipment + line of credit, all coordinated to maximize funding while minimizing cost.

Best move: You need a commercial financing specialist, not a single lender. The right advisor can save you hundreds of thousands in interest over the life of the loan.

Why One Application to 70+ Lenders Matters

“This guide covers everything I wish someone had told me 20 years ago about business financing. The industry is designed to confuse you. This guide is designed to fix that.”

— Bobby Friel, Basecamp Funding - Founder

Bobby Friel is the founder of Basecamp Funding, a business loan marketplace connecting business owners with 70+ lending partners across all 50 states. With over 20 years of experience in banking and mortgage lending, Bobby specializes in capital stacking for commercial transactions and helping business owners understand their financing options without the industry jargon. Based in Colorado's Vail Valley, Bobby works with businesses from startups to $10M+ commercial acquisitions.