Working capital options, explained simply
Explore seven ways to fund your business, see the typical minimums for each, and check your options with no impact on your credit.
No impact on your credit to check your options
Apply in minutes
Funds as soon as next day (timing not guaranteed)
+75 vetted lenders, including SBA approved lenders
Which option fits me?
Pick what you need most:
Cover a cash flow gap: Line of Credit, Revenue Based Financing.
A line of credit lets you draw only what you need. Revenue Based Financing can work if your sales are steady but your credit or time in business is still growing.
Buy equipment: Equipment Finance, SBA Loans.
Equipment Finance spreads the cost of a vehicle, machine or tools over time. SBA loans can also fund equipment for qualifying businesses.
Get paid on outstanding invoices: Invoice Factoring.
Invoice Factoring turns unpaid invoices from business customers into working capital, so you are not waiting 30 to 90 days to get paid.
Use my daily sales: Revenue Based Financing, Line of Credit.
Revenue Based Financing is repaid as a share of future sales, so it is built for businesses with steady card or bank deposits.
Lower or simplify my payments: Commercial Refinance, Term Loan, SBA Loans.
Commercial Refinance, a longer Term Loan, or an SBA loan may help restructure what you already owe. Lower payments are not guaranteed and total cost can change.
Your options
Typical minimums, not guarantees; final approval is up to each funder.
Revenue Based Financing
Also called a working capital advance. Not a loan.
You receive an upfront sum in exchange for a fixed share of your future sales. Remittances are taken daily or weekly from your business bank account.
Best for: Businesses with steady sales that need capital quickly and may not meet bank or term loan standards yet.
Typical amounts: About $5,000 to $500,000 is typical; larger amounts for strong files.
Typical terms: About 3 to 18 months, with daily or weekly remittances.
Typical minimums:
- Usually 6 to 12 months in business (a few programs start at 3 months)
- About $10,000 or more a month in deposits
- No credit requirements; checking your options has no impact on your credit.
- Business checking account with regular deposits
- No open bankruptcy
Trucking, construction and some other industries usually need more time in business and higher revenue. Availability varies by state.
Documents checklist:
- Short application
- Last 3 to 4 months of business bank statements
- Driver's license and a voided business check
- Balances of any open advances
Line of Credit
Draw what you need, when you need it.
You are approved for a credit limit, draw funds as needed, and repay each draw over a set schedule. As you repay, your available credit can be used again.
Best for: Covering ups and downs in cash flow, payroll timing, and unexpected costs.
Typical amounts: Most lines are $30,000 to $350,000. Older businesses may get more.
Typical terms: Each draw is usually repaid over about 12 to 36 months, monthly.
Typical minimums:
- Usually 3 year or more in business (many programs want 2 to 3 years)
- About $40,000 or more in monthly revenue (some programs want $50,000 or more)
- Credit requirements 660+. Vary by program; checking your options has no impact on your credit.
- Business checking account
- Some programs do not serve sole proprietors or nonprofits
Open advances may limit approval or line size.
Documents checklist:
- Application
- Last 4 months of business bank statements
- Driver's license and a voided business check
- Accounts receivable report
- Tax returns or financial statements for larger lines
Term Loan
A set amount repaid on a set schedule.
You receive a lump sum and repay it in fixed installments over an agreed term.
Best for: Planned investments such as expansion, inventory, hiring or a large purchase.
Typical amounts: Most are $50,000 to $400,000. Older businesses may get more.
Typical terms: About 12 to 36 months for most working capital term loans; longer terms may be available for strong files.
Typical minimums:
- Usually 2 year or more in business (many programs want 2 to 3 years)
- About $40,000 or more in monthly revenue (many programs want $50,000 to $60,000 or more)
- Credit requirements 660+ . Vary by program; checking your options has no impact on your credit.
- No recent bankruptcy
- Few or no open advances
Documents checklist:
- Application
- Last 3 to 4 months of business bank statements
- Driver's license and a voided business check
- Tax returns or financial statements (for bigger amounts)
- Proof of ownership
Invoice Factoring
Turn unpaid invoices into working capital. Not a loan.
You sell eligible unpaid invoices to a factoring company and receive most of their value up front. The balance, minus fees, is paid when your customer pays.
Best for: Business to business companies waiting 30 to 90 days on customers to pay.
Typical amounts: Grows as you invoice more. Smaller programs may not need financial statements.
Typical terms: Tied to your customers' payment terms. Account setup usually takes a few business days.
Typical minimums:
- Your customers are businesses or government, not shoppers
- Work is completed or goods delivered before you invoice
- Your customers have a good payment history
- No other lender has a claim on the invoices, or that lender agrees to step back
- Your own credit and time in business matter less than your customers' credit
Tax liens usually need a payment plan in place. Some industries and foreign receivables are not eligible.
Documents checklist:
- Accounts receivable aging report
- Sample invoices and proof of delivery
- Customer list
- Driver's license and business formation documents
Equipment Finance
Buy or lease the equipment you need.
Finance or lease trucks, machines, computers or tools. The equipment usually backs the financing.
Best for: Businesses buying new or used equipment that want to keep cash free for operations.
Typical amounts: Based on what the equipment costs. Small amounts often need just an application.
Typical terms: Commonly 24 to 60 months, shorter for low cost or fast depreciating equipment.
Typical minimums:
- Often 2+ years in business. Newer businesses may get smaller amounts.
- Credit requirements vary by program; checking your options has no impact on your credit.
- About $100,000 or more in annual revenue
- A quote or invoice for the equipment
- A personal guarantee is commonly required
Documents checklist:
- Application
- Equipment quote or invoice
- Recent business bank statements
- Tax returns or financial statements for larger amounts
Commercial Refinance
Rework existing business debt.
Replace or restructure what you already owe, either by refinancing commercial real estate or by consolidating business debt into a new program.
Best for: Owners who want to simplify payments, change a term, or use equity in commercial property.
Typical amounts: Building refinance often starts near $200,000. Debt refinance amounts vary.
Typical terms: Depends on the program; real estate refinance can run much longer than working capital options.
Typical minimums:
- Building refinance: you own business property worth more than you owe on it
- Credit requirements vary by program; checking your options has no impact on your credit.
- Business debt refinance: meet the minimums of the new program (see Term Loan or SBA)
- On time payments lately. Recent missed payments limit options.
Lower payments and savings are not guaranteed. A longer term can raise total cost.
Documents checklist:
- Application
- Current statements or payoff letters for debt being refinanced
- Property details and appraisal for real estate
- Business bank statements and tax returns
SBA Loans
Government backed loans offered through SBA approved lenders.
Loans made by SBA approved lenders and partly guaranteed by the U.S. Small Business Administration. Use it for daily costs, equipment, a building, or paying off debt.
Best for: Established businesses that can wait longer and provide more paperwork in exchange for longer terms.
Typical amounts: Up to $5,000,000 for SBA 7(a) loans.
Typical terms: Longer than most working capital options; set by the program and the lender.
Typical minimums:
- Operating, for profit business located in the U.S.
- Small under SBA size standards and in an eligible industry
- Creditworthy with the ability to repay
- Unable to get the same credit on reasonable terms elsewhere
- Many lenders also want about 2 years in business and good credit.
Documents checklist:
- Application and SBA forms
- Business and personal tax returns
- Financial statements and a debt schedule
- Business bank statements
- Ownership and formation documents
Compare at a glance
Option
Is it a loan?
Time in business
Sales
Credit
Term
Speed
Revenue Based Financing
No
6 to 12 months
$10,000+ a month
No minimum
3 to 18 months
Often fastest
Line of Credit
Yes
2 to 3 years
$40,000+ a month
640+
12 to 36 months per draw
Fast
Term Loan
Yes
2 to 3 years
$40,000+ a month
660+
12 to 36 months typical
Fast to moderate
Invoice Factoring
No
Flexible
Based on your invoices
Flexible; customers' credit matters most
Your customers' terms
A few business days
Equipment Finance
Yes, or a lease
2+ years typical
$100,000+ a year
Varies by program
24 to 60 months
Moderate
Commercial Refinance
Yes
Varies by program
Varies by program
Varies by program
Varies by program
Weeks
SBA Loans
Yes
About 2 years at many lenders
Ability to repay
Good credit
Longer terms
Longest
Typical minimums, not guarantees; final approval is up to each funder.
Why business owners work with us
+75 vetted lenders.
Including SBA approved lenders.
Plain language offers.
See rates, terms, total cost and fees before you choose.
No impact on your credit.
Checking your options will not affect your credit.
A broker based in the South East.
Southern Lending Partners is a broker, separate from the funders.
Frequently asked questions
Will checking my options affect my credit?
No. Checking your options has no impact on your credit.
Are these minimums a guarantee of approval?
No. These are typical minimums, not guarantees; final approval is up to each funder. Some funders ask for more, and a few ask for less.
What is the difference between a loan and Revenue Based Financing?
A loan is borrowed money repaid with a set schedule. Revenue Based Financing and Invoice Factoring are purchases of future sales or invoices, so they are not loans and work differently.
How fast can I get funds?
Some options can fund as soon as next day after approval and complete documents, but timing is not guaranteed. Factoring setup, real estate refinance and SBA loans take longer.
What documents should I have ready?
Most options start with a short application, your last 3 to 4 months of business bank statements, and a driver's license. Larger amounts and SBA loans need tax returns and financial statements.
How will I compare offers?
You see rates, terms, total cost and fees in plain language so you can compare offers side by side before you choose.
Who is Southern Lending Partners?
Southern Lending Partners is a broker, separate from the funders. We are based in Miami, FL and work with +75 vetted lenders, including SBA approved lenders.
WHATS NEXT
Compare offers side by side. See rates, terms, total cost, and fees in plain language so you can choose with confidence.
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