Seven structures. One of them fits.
What the money is for decides the structure. Not the other way around.
Short need or long need?
Mixing those two up is the most expensive mistake we see.
Working Capital
Capital used to carry ordinary operating costs when money leaves the business before it comes back in.
- Typical purpose
- Operating costs and timing
- Request range
- $50,000 to $5 million
Business Line of Credit
A revolving facility a business can draw from as needs come up, rather than taking the full amount at once.
- Structure
- Revolving access, draw as needed
- Best when
- Needs are irregular in size and timing
Business Term Financing
A defined amount of capital repaid on a defined schedule, generally used for a specific and identifiable purpose.
- Structure
- Set amount, set schedule
- Best when
- Cost and purpose are clearly defined
Equipment Financing
Financing tied to the purchase of equipment, where the equipment itself is central to the transaction.
- Tied to
- A specific asset purchase
- Common in
- Trucking, construction, healthcare, manufacturing
Revenue Based Financing
Capital where repayment is calculated against business receipts rather than a flat monthly figure.
- Repayment
- Calculated against receipts
- Consider
- Total cost in dollars, not just payment size
SBA Financing
Government guaranteed programs generally associated with longer horizons and heavier documentation.
- Character
- Longer horizon, heavier documentation
- Prepare
- Tax returns, statements, debt schedule
Invoice Factoring
Converting outstanding business to business invoices into cash before the customer pays.
- Financed asset
- Outstanding invoices
- Common in
- Staffing, trucking, home health, subcontracting
Bridge Financing
Short horizon capital used to cover a defined gap where the exit is already identified.
- Horizon
- Short and defined
- Requires
- A documented exit
Related structures that come up in conversation
Less common as a starting point. Common for asset heavy businesses, property and acquisitions.
- Accounts Receivable Financing
- Closely related to factoring, but the business generally continues to manage its own collections and the receivables serve as security rather than being sold. Owners who want the cash flow benefit without changing how customers are billed often ask about this structure first.
- Asset Based Financing
- Availability is calculated from the value of business assets and is reviewed on an ongoing basis. This tends to suit asset heavy companies such as distributors and manufacturers where inventory and receivables represent a large share of the balance sheet.
- Commercial Real Estate Financing
- Used for purchase, refinance, or improvement of commercial property. Review generally centers on the property itself alongside the operating business, and timelines reflect the added diligence that property transactions require.
- Business Acquisition Financing
- Acquisition conversations look at both the buyer and the target. Financial records for the business being acquired, the purchase agreement, and the buyer's experience in that industry all carry weight, and preparation matters more here than in almost any other category.
General qualification direction
- At least 12 months in business
- Generally at least $100,000 in average monthly business revenue
- A United States based operating business
- A financing request between roughly $50,000 and $5 million
These describe the businesses we are set up to serve. They are not a guarantee of approval, and every request is subject to review and underwriting.
Not sure which structure fits?
Describe the situation and we will tell you what makes sense — including when the honest answer is that now is not the time to borrow.