# Small business loans and financing > There are nine common kinds of small-business funding, and the biggest difference between them is how you pay the money back. Six are loans or credit; a merchant cash advance, invoice factoring and a purchase of receivables are sales of future revenue or invoices. Most show the range lenders and funders in our network quote for them. You don't have to choose before you apply: one application is matched against 75+ lenders. Source: https://www.37lend.com/business-loans Last updated: September 28, 2026 ## One lump sum, repaid on a schedule For a defined cost with a clear payback: a renovation, a vehicle, a large order, a second location. ### [Term loan](https://www.37lend.com/business-loans/term-loans) A term loan is a lump sum you repay in fixed installments over a set term, for a one-time cost with a clear payback. 16% to 25%: rates lenders in our network quote for term loans, as of September 2026. How it's repaid: Fixed payments on a set schedule until the balance is repaid. ### [SBA loan](https://www.37lend.com/business-loans/sba-loans) An SBA loan is made by a lender and partly guaranteed by the U.S. Small Business Administration, usually with longer terms. 7% to 18.99%: rates lenders in our network quote for SBA loans, as of September 2026. How it's repaid: Regular payments spread over a longer schedule until the balance is repaid. ### [Equipment financing](https://www.37lend.com/business-loans/equipment-financing) Equipment financing pays for vehicles, machinery or other hard assets, and the equipment itself secures what you borrow. 8% to 30%: rates lenders in our network quote for equipment financing, as of September 2026. How it's repaid: Fixed payments on a set schedule, with the equipment itself as collateral. ## Draw, repay, draw again For the gaps between busy and slow, and the everyday costs that never arrive on a schedule. ### [Line of credit](https://www.37lend.com/business-loans/line-of-credit) A business line of credit lets you draw funds as you need them, up to a limit, and pay interest only on what you use. 2% to 5% a month: rates lenders in our network quote for lines of credit, as of September 2026. How it's repaid: Draw what you need up to a limit, repay it, and draw again. ### [Business credit card](https://www.37lend.com/business-loans/business-credit-cards) A business credit card is revolving credit for everyday spending, billed each statement cycle, and can help build business credit. No quoted range: each issuer or lender sets its own rates and fees. How it's repaid: Spending builds up over each statement cycle, and the balance is paid down when the statement is due. Lenders in our network also offer home equity lines of credit, quoted at 7% to 16.5%; a HELOC is secured by your home. More in our FAQ: [Home equity line of credit](https://www.37lend.com/faq#home-equity-line-of-credit). ## Advances against sales and invoices For businesses waiting on customers or card sales, where what you are owed is the strongest asset. Three of these four are not loans. A merchant cash advance, invoice factoring and a purchase of receivables are sales of future revenue or invoices, usually priced as a factor or discount rather than an interest rate. A/R financing is a loan secured by your invoices. The figures below are pricing as quoted, so weigh offers by total cost, not against the loan rates above. ### [Merchant cash advance](https://www.37lend.com/business-loans/merchant-cash-advance) A merchant cash advance is not a loan: a funder buys part of your future card or bank sales and collects a share of them. 20% to 60%: pricing as quoted by funders in our network for merchant cash advances and purchases of receivables, as of September 2026. Not a loan: its cost is quoted as a factor or discount, so compare offers by total cost. How it's repaid: A fixed share of your card or bank sales goes to the funder until the agreed amount is collected. ### [Invoice factoring](https://www.37lend.com/business-loans/invoice-factoring) Invoice factoring means selling unpaid invoices to a factor for cash now, instead of waiting for customers to pay. 15% to 40%: pricing as quoted by lenders and funders in our network for invoice factoring and A/R financing, as of September 2026. Not a loan: its cost is quoted as a factor or discount, so compare offers by total cost. How it's repaid: Most of an invoice is paid to you now, and the rest, less fees, when your customer pays. ### [A/R financing](https://www.37lend.com/business-loans/accounts-receivable-financing) Accounts receivable financing is borrowing against your outstanding invoices while you keep them and collect from customers. 15% to 40%: pricing as quoted by lenders and funders in our network for invoice factoring and A/R financing, as of September 2026. Compare offers by total cost. How it's repaid: How much you can draw rises and falls with the invoices you are owed. ### [Purchase of receivables](https://www.37lend.com/business-loans/purchase-of-receivables) A purchase of receivables is not a loan: a funder buys a portion of your future receivables at a discount and collects them. 20% to 60%: pricing as quoted by funders in our network for merchant cash advances and purchases of receivables, as of September 2026. Not a loan: its cost is quoted as a factor or discount, so compare offers by total cost. How it's repaid: A funder buys a portion of your future receivables and collects that portion as they come in. ## Which option fits which need Start with what the money is for. The same need can often be met more than one way, and the best one depends on your business, how you're paid, and how soon you can repay. Common uses of small-business funding, and the kinds of funding often used for each: | What the money is for | Kinds of funding often used | Why | | --- | --- | --- | | Working capital | [Line of credit](https://www.37lend.com/business-loans/line-of-credit), [Term loan](https://www.37lend.com/business-loans/term-loans), [Invoice factoring](https://www.37lend.com/business-loans/invoice-factoring), [A/R financing](https://www.37lend.com/business-loans/accounts-receivable-financing), [Merchant cash advance](https://www.37lend.com/business-loans/merchant-cash-advance), [Purchase of receivables](https://www.37lend.com/business-loans/purchase-of-receivables) | Day-to-day costs, and the gap between paying out and getting paid. | | Inventory | [Line of credit](https://www.37lend.com/business-loans/line-of-credit), [Term loan](https://www.37lend.com/business-loans/term-loans), [Business credit card](https://www.37lend.com/business-loans/business-credit-cards) | Stock you expect to sell, often bought ahead of a busy season. | | Equipment | [Equipment financing](https://www.37lend.com/business-loans/equipment-financing), [Term loan](https://www.37lend.com/business-loans/term-loans), [SBA loan](https://www.37lend.com/business-loans/sba-loans) | Vehicles, machinery and tools, where the equipment can secure the financing. | | Expansion | [Term loan](https://www.37lend.com/business-loans/term-loans), [SBA loan](https://www.37lend.com/business-loans/sba-loans), [Line of credit](https://www.37lend.com/business-loans/line-of-credit) | A new location, more staff or a new line of business, paid back over time. | | Payroll | [Line of credit](https://www.37lend.com/business-loans/line-of-credit), [Invoice factoring](https://www.37lend.com/business-loans/invoice-factoring), [A/R financing](https://www.37lend.com/business-loans/accounts-receivable-financing) | Wages that are due before your customers pay you. | | Marketing | [Business credit card](https://www.37lend.com/business-loans/business-credit-cards), [Line of credit](https://www.37lend.com/business-loans/line-of-credit), [Term loan](https://www.37lend.com/business-loans/term-loans) | Campaigns and ad spend, paid as you go or as one planned push. | | Refinance debt | [Term loan](https://www.37lend.com/business-loans/term-loans), [SBA loan](https://www.37lend.com/business-loans/sba-loans) | Replacing existing debt with financing that suits your cash flow better. | | Real estate | [SBA loan](https://www.37lend.com/business-loans/sba-loans), [Term loan](https://www.37lend.com/business-loans/term-loans) | Buying, building or improving the property your business runs from. | This is general guidance, not a rule. Each lender decides which products it offers and what they can be used for, and many businesses use more than one kind of funding. ## Start your application Tell us how much you need and what it's for, and one application is matched against 75+ lenders. Next you'll sign in or create an account on our secure page, then finish the application in about six minutes. Looking uses a soft credit inquiry, which doesn't affect your credit score. Start: https://www.37lend.com/login?next=%2Fapplications%2Fnew Want to talk it through first? Book a call with a funding advisor: https://meetings-na2.hubspot.com/jpande ## More - [How it works](https://www.37lend.com/how-it-works) - [Small business funding FAQ](https://www.37lend.com/faq) ## Disclosures 37Lend is a funding marketplace, [not a lender](https://www.37lend.com/how-it-works#credit-checks). Loans and other financing are made by third-party lenders and funders in our network, and terms, rates and eligibility vary by lender, state and business profile. 1. The rate and pricing ranges shown are what lenders and funders in our network quoted as of September 2026. They are not APRs and not an offer. What you're offered depends on your credit profile, revenue and time in business, and on the lender or funder that takes your application. A line of credit is quoted per month, so its APR is higher. 2. Checking your options uses a soft inquiry that does not affect your credit score. A lender may run a hard inquiry only if you choose to accept its offer, and you are told and asked to agree first. 3. Applying is free, and so are getting offers and accepting one. Lenders may pay 37Lend a fee when financing is funded; the terms explain [what it costs](https://www.37lend.com/terms#what-it-costs). 4. Home equity lines of credit are offered by lenders in our network and are secured by your home, which you could lose if you don't repay. 5. A merchant cash advance, invoice factoring and a purchase of receivables are sales of future revenue or invoices, not loans. Their cost is usually quoted as a factor or discount rather than an interest rate, so compare offers by their total cost. 6. 37Lend is not affiliated with or endorsed by the U.S. Small Business Administration.