Business Financing Types Explained

Not sure which product fits what you need? Start here — each guide breaks down how it works, typical costs, and when it beats the alternatives.

Four core products

Choose a financing type

Once you know which type fits, check the industry pages for real lender comparisons.

Small Business Loans

A lump sum repaid over a fixed term. Best for one-time investments like equipment, buildouts or expansion.

7%–15% typical rateRead guide →

Lines of Credit

A revolving limit you draw from as needed and repay — only pay interest on what you use.

7%–25% typical rateRead guide →

Equipment Financing

Loans or leases tied to a specific piece of equipment, which usually secures the financing itself.

6.5%–13% typical rateRead guide →

Business Credit Cards

Best for recurring, smaller purchases — fuel, supplies, subscriptions — with rewards on everyday spend.

Rewards-basedRead guide →

Quick comparison

Quick comparison of business financing types by use case
If you need to...	Best fit	Why
Buy a specific piece of equipment	Equipment financing	The equipment secures the loan, often the lowest rate
Cover a one-time cost like a buildout	Business loan	Fixed lump sum with predictable payments
Bridge cash flow between slow and busy periods	Line of credit	Draw only what you need, repay, and reuse it
Cover everyday recurring purchases	Business credit card	Fast approval and rewards on routine spend