Commercial funding options for growing businesses

Not all business loans are created equal. Here's a plain-English breakdown of what's available, what lenders look for, and how to avoid overpaying.

Common loan types

Term Loans
$25K – $5M+

A lump sum repaid over a fixed schedule — months to years. Best for expansion, acquisitions, or large one-time costs. Rates depend heavily on credit and time in business.

SBA Loans
Up to $5M

Government-backed loans with favorable rates and long terms. The SBA 7(a) is the most common. More documentation required, but lower cost of capital for qualifying businesses.

Merchant Cash Advance
$5K – $500K

An advance against future revenue, repaid as a percentage of daily sales. Fast funding with flexible payback. Higher effective cost — best for short-term cash flow needs.

Equipment Financing
$10K – $5M

Asset-backed loans or leases for specific equipment. The equipment itself is collateral, which typically means better rates. Preserves working capital.

Business Line of Credit
$10K – $1M

Revolving credit you draw from as needed and repay on your terms. Interest only on what you use. Good for managing cash flow gaps and unpredictable expenses.

Invoice Factoring
Varies

Sell outstanding invoices to a lender at a discount for immediate cash. Best for B2B businesses with long payment cycles. Not a loan — no repayment schedule.

What lenders look at

Time in businessMost lenders want 1–2+ years of operating history.
Monthly revenueMinimum revenue requirements vary widely by product and lender.
Credit profileBoth business and personal credit are considered, especially for smaller loans.
IndustrySome industries face restrictions — cannabis, adult, gaming — regardless of financials.
Loan purposeLenders want to know the use of funds. Vague answers slow approvals.

Why use a marketplace

Approaching lenders one by one is slow, repetitive, and means sharing your information with every one of them independently — with no control over what happens to it afterward.

FundScout lets you submit once and get matched to lenders who actually fit your situation. Every lender on the platform has been vetted — licensed, checked, and reviewed. And because each match gets its own private contact pair, your information can't be passed around without a clear trace.

Borrowers pay nothing. Lenders compete on merit. That's the whole model.

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