Business Purpose Loan

401(k) business financing lets new and existing business owners use their retirement funds to start or buy a business, without incurring tax penalties or taking a loan. A big hurdle when starting a business is determining how to finance the business as it gets off the ground.

The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit.

Revenue-based financing is a type of financial capital provided to small or growing businesses in which investors inject capital into a business in return for a fixed percentage of ongoing gross revenues, with payment increases and decreases based on business revenues, typically measured as either daily revenue or monthly revenue.

A merchant cash advance empowers your business to trade tomorrow's earnings for cash today. You receive a lump sum of cash upfront, and then you pay back the advance with a percentage of your daily sales. You're essentially selling your future sales at a discount.

Purchase Order financing is designed for growing businesses that want to fulfill large orders. These companies have little access to working capital and/or poor cash flow.Purchase order financing is a short-term commercial finance option that provides capital to pay suppliers upfront for verified purchase orders. Businesses avoid depleting cash reserves or declining an order because of cash flow challenges. It allows companies to accept unusually large orders and adjust the loan basis up/down quickly to meet needs. If order volume drops, there’s no long-term commitment so they can stop using it at any time.

An unsecured business loan or line of credit is issued and supported by the owner's creditworthiness, rather than by any form of collateral. For this type of funding, a small business owner must have good personal credit to be approved 

With equity funding, you raise money by selling a portion of your ownership in the company. Unlike a loan, equity finance doesn't carry a repayment obligation. Instead, investors buy shares in the company in order to make money through dividends (a share of the profits) or by eventually selling their shares.

There are two main types of inventory financing: an inventory loan and an inventory line of credit. While both types of inventory financing are secured by leveraging your inventory as collateral, these two loan types mean different things for the future of your business financing.

• An inventory financing loan is simply a loan based on the value of your inventory. Just like a regular small business loan, an inventory loan is for a set amount that is paid back in monthly payments over a fixed repayment term or in a lump sum following the sale of inventory.
• While the funds from a loan can only be used once, an inventory line of credit can provide you with extra money on an ongoing, as-needed basis. Many business owners like having a business line of credit available to them so they’re able to handle any unforeseeable expenses that may come up.