15 Business Funding Options: How to Get Capital for Your Business

Overview: Funding Your Business

Getting capital is one of the biggest challenges for entrepreneurs. The good news? There are more funding options than ever before. This guide covers every major option, who qualifies, and how to apply.

1. SBA Loans

The Small Business Administration (SBA) guarantees loans made by banks, reducing their risk and making it easier for you to qualify.

SBA 7(a) Loan

• Amount: Up to $5 million
• Use: Working capital, equipment, real estate, refinancing
• Requirements: 680+ credit score, 2+ years in business, profitable
• Rates: Prime + 2.25% to 4.75%

SBA Microloan

• Amount: Up to $50,000
• Use: Startups and small businesses
• Requirements: Less strict, good for newer businesses

2. Business Lines of Credit

A line of credit gives you access to funds you can draw on as needed, only paying interest on what you use.

• Best for: Cash flow management, unexpected expenses
• Providers: Bluevine, Fundbox, Kabbage, banks
• Requirements: 600+ credit, $50K+ annual revenue

3. Business Credit Cards

The fastest way to access capital, especially with 0% APR introductory offers.

Best Business Credit Cards:

• Chase Ink Business Unlimited: 0% APR 12 months, $750 bonus
• American Express Blue Business Plus: 0% APR 12 months, 2x points
• Capital One Spark: 2% cash back on everything

Credit Card Stacking Strategy:

Apply for multiple 0% APR cards strategically to access $50K-$150K+ in interest-free capital. Key tips:

• Apply for 2-3 cards on the same day to minimize credit inquiries
• Start with your best cards (Chase, Amex) first
• Have a plan to pay off before the 0% period ends

4. Business Grants

Free money that doesn't need to be repaid. Competitive but worth pursuing.

Where to Find Grants:

• Grants.gov — Federal grants database
• SBA.gov — Lists current grant programs
• State economic development agencies
• Corporate grants — FedEx, Visa, Amazon, etc.
• Minority/women-owned business grants

5. Invoice Factoring

Sell your unpaid invoices to get cash immediately (minus a fee).

• Best for: B2B businesses with slow-paying clients
• Advance: 80-90% of invoice value
• Fee: 1-5% of invoice
• Providers: BlueVine, Fundbox, altLINE

6. Merchant Cash Advances (MCA)

Get a lump sum in exchange for a percentage of future credit card sales.

• Pros: Fast approval, bad credit OK
• Cons: Expensive (factor rates of 1.2-1.5)
• Best for: Emergency capital only

7. Equipment Financing

The equipment itself serves as collateral, making approval easier.

• Loan-to-value: Up to 100% of equipment cost
• Terms: 2-7 years
• Providers: Balboa Capital, Currency, Crest Capital

8. Revenue-Based Financing

Repay a percentage of monthly revenue until you've paid back the advance plus a fee.

• Best for: Businesses with strong, predictable revenue
• Providers: Clearco, Pipe, Wayflyer

9. Angel Investors

Wealthy individuals who invest in early-stage startups in exchange for equity.

• Typical investment: $25K-$500K
• What they want: 10-25% equity, potential for 10x+ return
• Where to find: AngelList, local angel groups, LinkedIn

10. Venture Capital

Professional investors who fund high-growth startups.

• Typical investment: $500K-$10M+
• What they want: Scalable business, large market, experienced team
• Reality check: Less than 1% of businesses are VC-appropriate

11. Crowdfunding

Reward-Based (Kickstarter, Indiegogo)

Pre-sell products to fund manufacturing.

Equity Crowdfunding (Wefunder, Republic)

Sell small equity stakes to many investors.

Donation-Based (GoFundMe)

Works for social enterprises and community projects.

12. Personal Loans

Use personal credit to fund your business, especially when starting out.

• Amounts: $1K-$100K
• Providers: SoFi, LightStream, Marcus
• Requirements: 680+ credit score

13. Friends and Family

Common for early-stage funding. Tips:

• Put everything in writing
• Set clear terms (loan vs. equity)
• Be honest about the risks

14. 401(k) Business Financing (ROBS)

Rollover for Business Startups lets you use retirement funds to start a business without early withdrawal penalties.

• Amount: Whatever's in your 401(k)
• Requirements: Must form a C-Corp
• Providers: Guidant Financial, Benetrends

15. Bootstrapping

Fund your business from personal savings and revenue. Slower but you keep 100% ownership.

Building a Fundable Business

Regardless of which option you pursue, lenders and investors want to see:

• Registered business entity (LLC or Corp)
• EIN and business bank account
• Business credit profile (DUNS number, trade lines)
• Financial statements (P&L, balance sheet, cash flow)
• Business plan or pitch deck
• Good personal credit (for most options)