A peer-to-peer (P2P) business loan is a financing product where the funding comes from a group of investors rather than a traditional lender. Peer-to-peer business lending is often easier to qualify for and offers lower interest rates than financing through traditional lenders. P2P business loans fund businesses that may not be able to get funding…
About the Author
Tricia Tetreault
Tricia Tetreault is a staff writer at Fit Small Business, specializing in Small Business Finance. She has a Master's in Business Administration, and has spent the majority of her career working in federal government lending. When she's not helping small businesses find the best financing opportunities, Tricia enjoys adventuring with her two children around her home in Vermont.
Trucking & Freight Factoring ― How It Works & Top Companies
Freight factoring ― also referred to as trucking factoring ― is a form of invoice factoring that allows transport companies, including owner-operators, to turn unpaid invoices into immediate cash. It is common for a trucking company to use freight factoring to cover cash flow gaps while they wait to be paid by their shippers or freight brokers. If…
Revenue-Based Financing: How a Revenue-Based Loan Works
Revenue-based financing (RBF) is funding offered by niche lenders in which payment amounts are based on a percentage of monthly business revenue. RBF works well for businesses with stable revenue streams but without the collateral needed for a traditional loan. The total cost for RBF can range from 1.35x – 3x the amount borrowed. With…
Staffing & Payroll Factoring: How It Works & Top Companies
Staffing factoring, also known as payroll factoring, is a financing tool for staffing agencies that converts unpaid invoices into immediate working capital. Staffing factoring companies will typically advance 85% to 90% of an invoice’s value immediately. The remaining balance will be given to the staffing agency, minus the factor’s fees after the client has paid the…
Best Merchant Cash Advance Alternatives for Small Businesses
Small business owners typically seek alternatives to merchant cash advances (MCA), such as small business loans or lines of credit, due to the extreme costs associated with MCAs. An MCA, which is a lump sum payment in exchange for a fixed percentage of your daily credit card receipts, can have APRs in excess of 200%….
Merchant Cash Advance vs Business Loan: What’s Best
Merchant cash advances (MCAs) and business loans are both financing options that provide small businesses with working capital. While either product can be a good financing option, the way these borrowing methods are structured differs greatly. To understand these differences better, we compared and contrasted the two, including a detailed example of each financing option….
6 Best Small Business Line of Credit 2019
A small business line of credit (LOC) is typically used for short-term working capital needs, as the funds can be borrowed and repaid repeatedly. Additionally, they’re unsecured, meaning collateral like inventory or real estate isn’t required. Some of the best business LOC providers we’ve identified can fund up to $250,000 with two days. Best Line…
6 Best Kabbage Competitors & Alternatives 2019
Kabbage offers business lines of credit in amounts up to $250,000, with repayment terms of six or 12 months and a fixed monthly fee of 1.5% to 10%. Businesses that need higher funding amounts, or that don’t meet the qualifications for Kabbage, might consider financing with short-term loans or other business financing alternatives. Top 6…
6 Best Merchant Cash Advance Companies 2019
A merchant cash advance (MCA) provides a lump sum cash advance in return for a percentage of your daily credit card receipts. Effectively, an MCA provider is buying your future credit card sales from you in advance of you receiving them. We evaluated the top six MCA providers to determine which offers the best terms….
8 Best Alternative Business Loans 2019
Alternative business loans have more flexible credit requirements, easier applications, and potentially quicker access to funds than traditional bank loans. This alternative business funding encompasses everything from short-term working capital loans to long-term commercial real estate loans. Alternative business loans are ideal for businesses unable to qualify for traditional loans or that need funds quickly. For…
How to Refinance Your Business Loans in 4 Steps
A business loan refinance can lower your current APR, reduce the frequency of your payments, and even unlock additional working capital for your business. The most common loans used for business refinancing are SBA loans and traditional small business term loans. In this article, we’ll show you how to refinance business loans in four easy…
USDA Business Loans & Grants and Where to Apply
Six primary types of USDA business loans and grants are available to businesses in rural areas (populations under 50,000). Approved lenders typically offer up to $10 million for the most popular USDA B&I loan program, with interest rates of 6 percent to 9 percent, and repayment terms of up to 30 years. 6 USDA Business…
