Types of business financing, explained
"Business funding" isn't one product — it's a category. Here's what the common types actually mean.
Term loans
A lump sum you receive up front and repay on a fixed schedule over a set period. Typically used for a specific one-time cost — equipment, expansion, a big purchase — where you know the amount you need in advance.
Lines of credit
Access to a pool of funds up to an approved limit, which you draw from as needed rather than all at once. Useful for managing uneven cash flow, since you only use (and typically only pay interest on) what you actually draw.
Equipment financing
Financing tied specifically to a piece of equipment, which often serves as collateral for the loan itself. Common for businesses that need machinery, vehicles, or other capital equipment without tying up working capital.
Revenue-based financing
Repayment is tied to a percentage of revenue rather than a fixed monthly payment, so it can flex with slower and busier periods. This can suit businesses with seasonal or variable income.
SBA loans
Loan programs backed by the U.S. Small Business Administration, offered through participating lenders. The government backing can allow for longer terms and more favorable rates, though the application and underwriting process is typically more involved.
How this connects to what we do
Credit-Fixed is a business loan broker — we connect you with lending partners in our network, but we don't set the rates, terms, or approval criteria for any of these products. That's determined by the lender you're matched with, based on your specific application.
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