Types of Funding
Commercial Funding Options for Every Business Need
Navigating the world of commercial funding can feel overwhelming, but the good news is there’s a solution for nearly every business situation. From startups seeking seed capital to established companies looking to expand, purchase real estate, or improve cash flow, today’s lending landscape offers a wide variety of programs tailored to different goals, industries, and credit profiles. Whether you're pursuing traditional financing through a bank, a government-backed loan like the SBA 7(a), or exploring alternative funding such as equipment leasing or revenue-based financing, understanding your options is the first step toward making smart financial decisions. Below, you’ll find a breakdown of the most common commercial funding programs available and how they might align with your business goals.
SBA 7(a)
The SBA 7(a) loan is the Small Business Administration’s most popular loan program, designed to help small businesses access affordable financing for a wide range of needs—from launching a new venture to expanding operations, purchasing equipment, or refinancing debt. Backed by the SBA and issued through approved lenders, these loans offer flexible terms, competitive interest rates, and lower down payments than many traditional loans.
While perfect credit isn't required, strong financials and a solid business plan can strengthen your application.
SBA 504
SBA 504 Loan program is designed to help small businesses finance major fixed assets, such as purchasing commercial real estate or large equipment. This program is ideal for businesses looking to expand through property acquisition, ground-up construction, or substantial facility upgrades. SBA 504 loans offer long-term, fixed-rate financing with lower down payments—typically just 10%—making it a powerful tool for preserving working capital.
These loans are structured through a partnership: a bank or lender covers 50% of the project cost, a Certified Development Company (CDC) covers up to 40% backed by the SBA, and the borrower contributes the remaining 10%. To qualify, your business must operate for profit, fall within SBA size guidelines, and plan to use the property for at least 51% owner-occupied space. Strong cash flow, good credit, and job creation or public policy goals (like energy efficiency) can also support eligibility.
Asset-based lending is a flexible financing solution that allows businesses to leverage their existing assets—such as accounts receivable, inventory, equipment, or real estate—to secure a line of credit or term loan. This type of funding is ideal for companies experiencing rapid growth, seasonal fluctuations, or temporary cash flow challenges. Rather than relying heavily on credit scores or cash flow projections, ABL focuses on the value of your collateral, making it a valuable option for businesses that are asset-rich but may not qualify for traditional loans. It's commonly used for working capital, growth initiatives, or restructuring, and can be customized to fit a wide range of industries and situations.
Asset Based Lending
Equipment Financing
Commercial Real Estate
Working Capital
Lines of Credit
Construction equipment financing helps contractors and construction businesses acquire the heavy machinery and tools needed to operate efficiently—without tying up large amounts of working capital. This type of funding allows you to purchase or lease equipment such as excavators, bulldozers, loaders, cranes, and more, often with little to no money down and repayment terms tailored to the expected lifespan of the equipment. Whether you're upgrading outdated machinery or expanding your fleet to take on more projects, construction equipment financing provides a cost-effective way to keep your business moving forward. Qualification typically depends on time in business, credit history, and the value of the equipment being financed.
Commercial real estate financing provides the capital needed to purchase, develop, or refinance property used for business purposes—such as office buildings, retail centers, warehouses, or multi-family housing. Whether you're acquiring a new location, expanding your operations, or investing in income-producing property, this type of financing offers long-term solutions with competitive rates and structured repayment terms. Loans may be secured through traditional lenders, SBA programs, or private funding, and typically require a solid business plan, good credit, and a down payment. Commercial real estate loans are a strategic tool for building equity and creating stability for your business over time.
Working capital—sometimes referred to as mobilization capital—is essential for keeping your business running smoothly on a day-to-day basis. This type of financing is designed to cover short-term operational needs such as payroll, materials, inventory, or upfront costs on new contracts before revenue starts coming in. It’s especially valuable for businesses in construction, government contracting, or service industries where projects often require upfront spending. Working capital loans are typically fast to fund and can be structured as lines of credit, short-term loans, or advances based on receivables. Strong revenue, solid contracts, and a clear repayment plan can improve your chances of approval.
A commercial line of credit is a flexible financing tool that gives businesses access to a revolving pool of funds they can draw from as needed—perfect for managing cash flow, covering unexpected expenses, or taking advantage of time-sensitive opportunities. Unlike a traditional loan, you only pay interest on the amount you use, and funds can be replenished as you repay. Lines of credit are often unsecured and based on your business’s revenue, credit profile, and financial history, though secured options are also available. This type of funding is ideal for businesses that need ongoing access to working capital without committing to a fixed loan amount.
Take Off!
Interested in working together?
Tell us about your dream, your idea, your existing business. We are here to fund it! We want to make sure you have the right fuel for take off.
Fill out some info and we will be in touch shortly. We can’t wait to hear from you!