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Comparing types of business financing
Six common ways US businesses access credit or capital, compared on the same criteria — not ranked by which pays us the most.
How this table is built.
- Typical time to access
- What it typically requires
- Typical cost structure
- What it typically builds
| Type | Time to access | Typical requirements | Typical cost & what it builds |
|---|---|---|---|
| Net-30 vendor account | Often same day to a few days | EIN, sometimes a small deposit, no established credit history needed | Usually low or no interest cost if paid on time; builds early business tradelines |
| Business credit card | Minutes to a few days | Personal credit check almost always; business file if one exists | Variable APR if carried month to month; can build business credit if the issuer reports to business bureaus |
| Business line of credit | A few days to a few weeks | Some operating history, bank statements, often a personal guarantee | Variable rate typically, interest charged only on the amount drawn |
| SBA loan | Several weeks to a few months | Bank underwriting plus SBA eligibility rules, solid documentation | Often lower rates than unsecured options due to the SBA guarantee, but a longer process |
| Revenue-based financing | Often within days | Consistent revenue history, less emphasis on credit score | Typically priced with a factor rate rather than an APR; often the most expensive option |
| Equipment financing | Days to a couple of weeks | The equipment itself usually serves as collateral | Often a fixed rate over a set term tied to the equipment's useful life |
This table describes typical patterns, not guaranteed terms — actual requirements, cost and speed vary by lender, industry and the specific business's financial history.
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How we make money: some links here are partner or affiliate links and we may be paid a fee at no cost to you. It never changes what we write or how options are ordered — see our disclosure and methodology.
Partner
Bluevine — business banking
Online business checking, built for a business that wants its financial activity clearly separated from day one.
Compare the account →Partner
American Express — business cards
A well-known business card line, useful for comparing rewards structures and reporting practices against other issuers.
Compare business cards →