Guide: How to Choose the Right Business Financing
Not all financing is created equal, and the cheapest headline rate is rarely the whole story. Before you apply, get clear on three things: how much you actually need, how quickly you can repay it, and what the money is for.
Match the product to the purpose
- Term loan — best for a one-time investment with a clear return (equipment, expansion, a buildout).
- Line of credit — best for smoothing cash flow and covering recurring short-term gaps.
- Merchant cash advance — fast and flexible, repaid as a share of card sales, but usually the most expensive on an annualized basis — use it deliberately.
- Equipment financing — the equipment itself is the collateral, which often means better terms.
Read past the rate
Look at the total cost of capital, not just the interest rate: origination fees, the repayment frequency (daily vs. monthly), and any prepayment penalties. A "low rate" repaid daily can cost more in real dollars than a higher-rate monthly loan.
Guide: Building Business Credit the Right Way
A strong business credit profile unlocks better rates, higher limits, and financing that doesn't lean on your personal guarantee. It takes time, but the steps are straightforward:
- Register the business properly and get an EIN.
- Open accounts and trade lines that report to the business bureaus.
- Pay early, not just on time — payment history is the biggest lever.
- Keep utilization low and your business information consistent everywhere.
Guide: What You're Actually Paying in Merchant Fees
Card processing pricing has three parts: interchange (set by the card networks and paid to the issuing bank), assessments (the network's cut), and the processor markup. Interchange and assessments are the same for everyone — the markup is where you're either getting a fair deal or quietly overpaying. Ask any provider for interchange-plus pricing so you can see the markup in black and white.