Compare your options
Six ways to fund a business, what each one costs you, and how long each one takes.
We arrange revenue advances. Here’s the honest case for everything else.
Apply NowTwo things sort every business owner into the right product. How fast you need the money, and how strong your file is today.
Cheap money is slow and hard to qualify for. Fast money is easy to qualify for and costs more. Nobody has beaten that trade yet.
Everything below is sorted by it, cheapest and slowest first.
Six options
A bank loan partially guaranteed by the Small Business Administration, most commonly a 7(a).
Who it fits. Strong credit, two or more years trading, clean books, and time to wait.
The catch. Heavy documentation, personal guarantees, and often a collateral requirement. Many applicants are declined after weeks of work.
If you qualify and the need is 90 days out, this is the cheapest money available and you should take it.
A fixed amount from a bank, repaid monthly over a set term.
Who it fits. Established businesses with strong credit and a banking relationship already in place.
The catch. Banks underwrite on tax returns and history rather than current revenue. A recent entity restructure or one soft year can end it.
A revolving limit you draw against and repay, then draw again.
Who it fits. Businesses with recurring short gaps rather than one large need.
The catch. Limits are usually smaller than a term loan or an advance, and a line can be reduced or pulled at the moment you most want it.
Funding secured by the equipment itself.
Who it fits. Anyone buying a specific machine, vehicle, lift, chair or rack.
The catch. The money buys equipment and nothing else. It won’t cover payroll or materials.
When the purchase is equipment, this often beats an advance on price. We’ll say so.
You sell unpaid invoices to a factor at a discount and get most of the value now.
Who it fits. B2B businesses invoicing creditworthy commercial customers.
The catch. Underwriting looks at your customers rather than you, and many factors contact them directly. Some owners won’t accept that.
A funder buys a set amount of your future revenue at a discount and gives you the money now. This is what we arrange.
Who it fits. Businesses with real revenue and a deadline a bank timeline can’t meet.
The catch. You pay for speed and access. That’s the trade, and it’s a good one only when speed or access is worth the money to you.
Pricing
Advances are priced as a factor rate, a multiplier rather than a percentage. A factor rate of 1.30 on $100,000 means you remit $130,000.
A factor rate is not an interest rate and the two don’t compare directly. Interest accrues over time, so paying a loan early saves money. A factor rate is fixed on day one, so the total is the total.
Two numbers decide every comparison. The total dollars you remit, and the amount that leaves your account each day or week.
Six months and eighteen months at the same factor rate cost identical dollars. They do completely different things to a Friday.
Ask what early payoff does, too. Some funders discount it and some don’t. We ask on every offer.
Figures are illustrative and shown to explain how pricing works. Your numbers will be your own.
Filings
A UCC-1 is a public notice filed with the state saying a funder has an interest in your receivables. Most funders file one.
It isn’t a lien on your equipment, your building or your house, and it isn’t a judgment.
It runs five years unless terminated or continued. Other funders can see it, and it shapes what they offer you next.
Ask for the termination once an advance is satisfied. Filings that stay live after the money is repaid are common, and they cost you on the next deal.
Quick answer
We arrange revenue advances. That’s one product, and it isn’t right for everyone.
What we know is which funders work with your trade at your revenue, and how an application has to be built to get the strongest answer back.
If your situation points at a bank, an SBA loan or equipment paper, you’ll hear that from us. Three minutes gets you a straight read either way.
Apply in three minutes and we’ll tell you where you stand today.
Apply in minutes. Fast approvals, 24 hour funding.
Berkley Financial Group LLC is a funding brokerage, not a lender. Funding is arranged by Berkley and provided by third-party funders, who make the credit decision and set the terms. Not a commitment to fund. All financing subject to the funder’s approval.