Business Lines of Credit
A business line of credit (LOC) provides business owners with a revolving credit facility that can be used as needed. You repay what you owe, plus interest, which then becomes available to your business to borrow again.
Wells Fargo offers lines of credit from $10,000 to $150,000 at 8.5% to 16.5% APR for businesses with at least 6 months of operation and a 680+ credit score. Bluevine offers $5,000 to $200,000 at 14% to 95% APR with a 625+ credit score and $120,000 annual revenue requirement.
SBA Loans
SBA loans are backed by the US Small Business Administration (SBA) and offer longer terms, smaller down payments, and lower interest rates. However, they have specific requirements and take 60-90 days to process.
Main SBA loan types include 7(a) loans (up to $5 million for working capital at 9.75% to 14.75% with the current prime rate of 6.75%), 504 loans (for real estate and equipment at 5% to 7% fixed), and microloans (up to $50,000, averaging $13,000). The SBA Working Capital Pilot program launched August 1, 2025, offers monitored lines of credit up to $5 million for specific industries.
Important: SBA 7(a) loans require a minimum Debt Service Coverage Ratio (DSCR) of 1.25x, while 504 loans require 1.2x DSCR. This measures your ability to service debt payments with operating income.
Business Credit Cards
A business credit card is another form of revolving credit for businesses, as lenders let you use the funds you need, pay it back with interest (in most cases), and make it available to you again.
The benefit of a business credit card is that it is accepted almost everywhere and it gives you a quick solution to short-term cash flow.
Business credit cards are best used for smaller expenses that you can quickly repay. This will save you on interest and help you build a good credit history.
Equipment Financing
As the name implies, equipment financing gives you the finance you need to lease additional equipment for your business.
With this financing option, the term "equipment" is quite broad and it can cover anything from construction equipment to office furniture and software.
Because the equipment serves as collateral for the loan, even businesses with bad credit can qualify for equipment financing, although you'll get much better interest rates with a good credit history. Blue Bridge Financial, for example, offers equipment loans from $10,000 to $500,000 at APRs starting at 5.99% for businesses with credit scores as low as 610.
Commercial Real Estate Loans
Commercial real estate loans allow businesses to buy real estate. SBA 504 loans are the most popular option, with fixed rates of 5% to 7% for terms up to 25 years. Conventional commercial real estate loans typically range from 5.5% to 8.5% for 5-25 year terms.
When you take out a commercial real estate loan, the real estate itself will serve as collateral. That's why aspects like the location of the property and its usability will affect the type of deal you will be offered.
Keep in mind that these loans have a long funding wait time and often have strict requirements.
Cash Flow Loans
Cash flow loans come in various types and they are designed to help out with short-term cash flow. An example is when you are waiting for a client to pay their invoice but you have bills that are due.
A cash flow loan can help you get quick cash to pay your bills while you wait for payments to come in.
Cash flow loans can come in the form of invoice financing, lines of credit, and merchant cash advances.
Microloans
A microloan is similar to a term loan but smaller. Microloans generally come in amounts of $50,000 or less ($13,000 is the average SBA microloan) and they are easier to obtain than large new business loans.
Microloans usually have higher interest rates and they offer a good opportunity to build your credit profile. The process is fairly quick and you can get a microloan approved in about two weeks.
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