Category guide
Business loans
A business loan provides capital to a company — as a term loan, a line of credit, a merchant cash advance or equipment financing — from a bank or an alternative lender.
What business financing covers
Business lending spans several products: a term loan (a lump sum repaid over time), a line of credit (revolving funds you draw as needed), a merchant cash advance (an advance repaid from future sales), and equipment financing (a loan secured by the equipment it buys). Each suits a different need — growth, cash flow, or a specific purchase.
Banks versus alternative lenders
Banks and credit unions offer the lowest rates but require strong revenue, time in business and often collateral. Alternative and online lenders approve faster and serve newer or lower-revenue businesses, but charge more. Government-backed programs exist for qualifying small businesses and can be the cheapest option.
How to compare and borrow smart
Match the product to the purpose — don't fund a long-term asset with a short-term advance — and compare the true annualized cost including all fees, not just the rate quoted. Confirm the repayment structure fits your cash flow. Use the directory to find business lenders near you and compare by rating.