Match the term to what you are funding.
Short-term working capital and a long-lived asset do not need the same repayment horizon. The term should give the use of funds enough time to produce value without creating an avoidable payment squeeze.
Business funding guide
Every way to fund a business, compared.
Most owners only ever see one or two options. This page lays out the realistic ones side by side, including the tradeoffs, and explains where a commercial financing broker fits.
Side-by-side comparison
The structure matters as much as the amount.
Every product has its own qualification, cost, and payment mechanics. Use this table as a starting point, then confirm the specific offer and terms with the capital partner.
| Option | How it works | Typical qualification | Best suited to | Costs in general terms | Honest downsides |
|---|---|---|---|---|---|
| Revenue-based financing | A business receives capital and repays it through an agreed share of future revenue. Some products flex the remittance with monthly sales, while others use a fixed ACH schedule. | Usually requires operating revenue and a business history that a partner can review. The partner may examine bank activity, deposits, and business performance. | Businesses with recurring revenue that want growth capital without selling ownership. | A capital partner may quote a factor or other fixed repayment amount, plus possible fees. Review the total repayment and payment mechanics in the offer. | Remittances reduce cash in strong months, and total repayment can exceed the amount advanced. |
| Invoice factoring | A business sells or assigns eligible unpaid invoices to a factoring company for an advance before customers pay. The factor collects from the customer under the agreed structure. | Requires eligible commercial invoices from creditworthy B2B customers. The factor reviews the invoices, customer payment history, and concentration. | Businesses that invoice other businesses and need working capital before their customers pay. | Fees are usually charged per invoice or over the time it remains unpaid. The advance rate and reserve are set by the factor. | There are fees per invoice, and it only works on B2B receivables. |
| Equipment financing | A lender or capital partner provides funds to buy a specific piece of equipment, with the equipment tied to the financing. Payments follow the agreed term. | Approval can depend on the business, its cash flow, and the type, age, and resale value of the equipment. | Businesses buying vehicles, machinery, technology, or other identifiable operating equipment. | Costs can include interest or a fixed finance charge, fees, and a down payment depending on the offer. The term often follows the useful life of the asset. | The asset is the collateral, and approval depends on the equipment’s value. |
| Business line of credit | A business receives access to a maximum amount and draws only what it uses. Interest or other charges apply according to the line’s terms. | Partners generally look at revenue, cash flow, credit history, time in business, and sometimes collateral or a personal guarantee. | Businesses with recurring cash needs that want a reusable source for short gaps or planned expenses. | You may pay interest or fees on draws, along with an annual, maintenance, or availability fee. The agreement controls how long the line remains open. | You pay for availability, and the line can be frozen or reduced by the partner. |
| Term loan (bank) | A bank provides a lump sum that the business repays in scheduled installments over a set term. The proceeds can be used for an approved business purpose. | Banks often require strong credit, documented cash flow, financial statements, and time in business. Collateral and guarantees may also be required. | Established businesses with predictable cash flow that can wait for a detailed underwriting process. | The cost is generally interest and lender fees, with the exact rate and term based on the bank’s underwriting. Payments are scheduled whether revenue changes or not. | The process can be slow and collateral and credit driven, making it hard for younger businesses. |
| SBA loan | A bank or approved lender makes a loan partially supported by a Small Business Administration guarantee. The business repays the lender under a structured term. | Eligibility is strict and depends on the business, owner, use of funds, documentation, credit, cash flow, and other lender requirements. | Eligible businesses seeking longer-term capital and willing to complete a detailed application. | Costs generally include interest, lender fees, and SBA-related fees where applicable. The lender sets the final pricing and structure. | SBA loans have the longest timelines and the most documentation, with strict eligibility. |
| Merchant cash advance | A business receives an advance and pays it back through a percentage of card or bank receipts, or through fixed withdrawals, depending on the contract. | Providers often focus on recent sales or deposits and may weigh credit differently from a bank. The provider sets its own approval criteria. | Businesses with reliable card or deposit volume that need to evaluate a fast but expensive source of working capital. | The cost is often expressed as a factor or purchased-receivables amount rather than a traditional interest rate. Read the total payback and collection method carefully. | It is often the most expensive option, and the repayment structure can strain a slow month. |
A practical framework
How to choose
Match the structure to your revenue pattern.
If revenue is seasonal or uneven, understand whether payments flex with sales or stay fixed. A schedule that looks manageable in a strong month may feel different in a slow month.
Know your true cost before you sign.
Ask for the total repayment, all fees, the payment frequency, and what happens if revenue or invoice timing changes. Compare the full dollar cost and cash-flow effect, not just a headline rate.
Protect future ownership if equity may come later.
If you expect to raise equity later, start with the option that does not dilute ownership when a suitable non-equity structure can meet the need. The right answer still depends on your file and use of funds.
Our role
Where Avyron Capital fits
Avyron Capital, the public business name of Avyron Holdings LLC, is a commercial financing broker. We do not lend or fund directly. We review your file and match it to capital partners in our network whose criteria fit, across revenue-based financing, invoice factoring, equipment financing, and lines of credit. You choose from the offers.
We do not offer every option in the table. We will tell you when something outside our network is a better fit. Learn more about revenue-based financing, funding options, and industry-specific considerations. You can also use the revenue-based financing calculator for an illustrative estimate.
Common questions
Questions before you choose
Honest answers about cost, timing, collateral, credit, and qualification.
Which option is cheapest?
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The cheapest option depends on your file, the structure offered, and how long you need the money. Compare the total cost and payment schedule rather than looking only at a stated rate.
Which is fastest?
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Some alternative products can move faster than bank or SBA loans, but fastest is not cheapest. Timing depends on the product, your documents, and the partner’s review.
Do any of these require collateral?
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Collateral requirements vary by product and partner. Equipment financing commonly uses the equipment as collateral, while other structures may require a personal guarantee, a lien, or no specific asset.
Will applying affect my credit?
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The credit inquiry type depends on the partner and the product. Ask which type of inquiry will be used before authorizing a credit check.
How do I know which one I qualify for?
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Qualification is reviewed by the capital partner. The partner may consider revenue, time in business, credit, collateral, invoices, equipment, cash flow, and the purpose of the funds.
Avyron Capital is a commercial financing broker. We connect businesses with a network of third-party capital partners. We are not a bank and not a direct lender. All funding offers are made by our capital partners and are subject to their underwriting and terms.