If you’re looking to purchase equipment for your business, such as a new sewing machine, or even a commercial truck, equipment financing is a specific type of product for that purpose. Instead of having to put up collateral or a personal guarantee, in most cases, equipment financing allows you to use the equipment as collateral.
Merchant cash advances provide a quick cash infusion (usually within 24 hours) that is repaid with a percentage of daily sales made by credit and debit cards. When sales are higher, a larger portion of the cash advance is paid back. They are primarily used when speed and convenience are priorities, and are the most common type of funding that new businesses can qualify for.
Bonus: What is a Merchant Cash Advance?
A business line of credit allows a company to borrow cash as needed up to a maximum amount. They’re similar business credit cards, but usually come with higher limits. This buffer can resolve cash flow shortfalls, which is especially useful in emergencies or when navigating temporary or seasonal fluctuations.