Top 10 Small Business Financing Options in LA

Los Angeles is home to over 244,000 small businesses, but the need for capital extends across the entire country. In such a competitive landscape, having access to funding is not just an advantage—it's a necessity. Whether you need to cover payroll during a slow season or invest in a major expansion, knowing your options is the first step.

Here are the top 10 financing options available to businesses in Los Angeles and nationwide in 2026:

1. SBA 7(a) Loans
   The gold standard. Offering up to $5 million with long repayment terms and low rates. Ideal for working capital, debt refinancing, and business acquisition.
2. Business Line of Credit
   Think of this as a credit card for your business but with higher limits and lower rates. Draw funds as needed and pay interest only on what you use.
3. Revenue-Based Financing
   Perfect for businesses with consistent revenue streams. Get capital upfront and repay it as a percentage of your future sales. Flexible payments that grow with your business.
4. Equipment Financing
   Need a new truck, oven, or medical device? The equipment itself serves as collateral, often allowing for 100% financing with little to no money down.
5. Commercial Real Estate Loans
   Purchase, refinance, or develop property. Options include conventional bank loans, SBA 504 loans, and bridge loans for fix-and-flip projects.
6. Invoice Factoring
   Sell your unpaid invoices to a lender for immediate cash (usually 80-90% of the value). Great for B2B companies waiting 30-90 days for payment.
7. SBA Microloans
   Loans up to $50,000 specifically for startups and very small businesses. Often easier to qualify for than larger 7(a) loans.
8. HELOC (Home Equity Line of Credit)
   Business owners who own a home can tap into personal equity to fund their business. It offers low rates but puts your home at risk.
9. Term Loans
   A standard lump-sum loan with fixed monthly payments over a set term (1-5 years). Simple and predictable.
10. Business Credit Cards
    Essential for separating personal and business expenses. Many offer rewards, cash back, and 0% introductory APR periods.

Choosing the right financing option depends on your specific needs: speed of funding, cost of capital, and repayment flexibility. At PMF LA, we offer access to all these products and more.