A bank statement loan is based, among other things, on the past 3-24 months of bank statements. This allows lenders to see that the average monthly deposits, withdrawals/expenses and average balances will be able to support the business loan payments.

ACH stands for Automated Clearing House. The repayment process of an ACH loan is similar to that of a utility bill. The loan is automatically withdrawn on a set date – which can be daily, weekly or monthly. The repayment plan is contingent on the terms and conditions of the loan agreement The amount is fixed and predictable, which means that you will not experience any unexpected and unwelcome surprises when you manage your cash flow.

A type of asset-based loan secured by property. This type of loan is usually issued by private investors or companies, and are usually used as an alternative to the more traditional financing. Types of borrowers who tend to get hard money loans include: Property flippers. Borrowers who don’t qualify for traditional loans. Homeowners facing foreclosure with substantial equity in their home.

Factoring is not considered a loan. A third party, known as a factor, will purchase a company’s invoices or purchase orders at a discount. Instead of waiting for the invoice or purchase order to be paid, business owners now have access to a portion of that invoice. The balance, minus the agreed upon fees, is then paid to the business owner once the factor has collected payment from the customer(s).

Accounts receivable financing allows companies to receive early payment on their outstanding invoices. A company using accounts receivable financing commits some, or all, of its outstanding invoices to a funder for early payment, in return for a fee. The process is a quick and efficient way for a business to secure working capital without going through the hassle of obtaining a bank loan.

A specific type of asset-based loan secured by real property. This type of loan is often issued by private investors or companies, and are used as a bridge to more traditional financing.

A short term loan is a type of business capital loan that provides a company with quick working capital. Like most other bank loans, you will receive a lump sum of cash which is then repaid over a set period of time, usually under 12 months. Among other things, short term loans are used to raise working capital to cover temporary deficiencies in funds so you can meet payrolls and other expenses.

When deciding to make large investments or expand your business, a long-term business loan is right for you. This type of loan gives you the more time to repay and a come with very low monthly payments It may be harder to qualify if you have a fairly new business because you’ll need an established business and strong finances.

Federal, state, and local governments, as well as some private groups sometimes offer grants to small business owners. Government grants are not available for: starting a business, paying off debt, or covering operating expenses. Grants are not loans and typically do not require repayment.

non-bank lenders offer a legitimate alternative to traditional banks and have created a competitive environment to the advantage of borrowers who have realized the benefits of shopping around. Non-bank lenders typically have a big margin to work with and can often provide lower interest rates than the banks.