The broad categories of business financing and what sets them apart.
Common categories include revolving credit, lump-sum term financing, revenue-based advances, and asset or equipment financing, each suited to different needs.
Repayment is tied to a business's sales activity, so the arrangement flexes with revenue rather than following a fixed interest schedule.
A single amount is provided upfront and repaid over a defined term through regular scheduled payments.
Many general financing products place few restrictions on use, while some specialized products are tied to a specific purpose such as buying equipment.
Some categories repay on a fixed schedule, others flex with sales, and revolving options let a business repay and then redraw the same funds.
The right fit depends on the purpose of the funds, how quickly they are needed, and how well the repayment pattern matches the business's cash flow.