Small Business Financing Center
Every stage of a business — launch, working capital, expansion, real estate — has a financing structure that fits it. This hub explains how SBA loans, lines of credit, factoring, and business cards actually work, so the wrong instrument doesn't quietly hollow out the margin. Educational only, not underwriting advice.
Last reviewed by UseYourCredit editorial team.
Stage 1
SBA loans: 7(a), 504, and microloans
SBA-backed loans carry longer terms and lower down payments than conventional bank debt, but underwriting is intense: personal credit, business financials, collateral, and a personal guarantee are standard. Know which program fits — 7(a) for working capital, 504 for real estate and equipment, microloans for early-stage capital.
Stage 2
Business credit cards and lines of credit
Business cards from major issuers report primarily to commercial bureaus (D&B, Experian Business) — a feature when scaling, a trap when personal utilization matters for a mortgage. Lines of credit provide revolving working capital with interest only on drawn balances.
Stage 3
Invoice financing, factoring, and MCAs
Invoice factoring advances cash against receivables at a fee; merchant cash advances repay from daily card sales at effective APRs that often exceed 60%. Both fill gaps, both compound quickly. Model true cost before signing.
Stage 4
Building business credit that stands alone
A D-U-N-S number, an EIN, net-30 vendor tradelines, and a business bank account form the foundation. Once the business file is thick and paying on time, underwriters can approve financing on the entity — decoupling growth from personal FICO.