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Business funding options compared

Compare every business funding option. One guide.

SBA loans, working capital, lines of credit, equipment financing, invoice factoring, purchase order financing, and commercial real estate — compared side by side. PMF LA helps you find the right fit before you spend time on the wrong path.

  • Eight funding types compared across six dimensions in one table.
  • Head-to-head breakdowns for the most common funding decisions.
  • Decision guide — match your situation to the right structure.

How PMF LA compares options

PMF LA is an independent business funding resource — not a bank, marketplace, or lender. We help owners understand what is available, what fits their situation, and what to avoid before they commit to a path.

8Funding types
6Comparison factors
4Head-to-heads
1Decision guide

All business funding options at a glance

Eight major funding types compared across the factors that matter most — speed, amounts, term length, best use, minimum requirements, and where PMF LA can help.

Funding Type Time to Fund Typical Amounts Term Best For PMF LA Page
SBA 7(a) Loan 2–8 weeks Up to $5M 10–25 years Expansion, equipment, working capital, real estate SBA 7(a)
SBA 504 Loan 4–8 weeks Up to $5.5M+ 10–25 years Owner-occupied real estate, major equipment SBA 504
SBA Express 1–3 weeks Up to $500K Up to 7–10 years Faster SBA path, lines of credit, smaller needs SBA Express
Working Capital 1–5 days $10K–$2M+ 3–24 months Payroll, inventory, cash flow gaps, fast opportunities Working Capital
Business Line of Credit Days to 2 weeks $10K–$500K+ Revolving Recurring or variable needs, seasonal cash flow Line of Credit
Equipment Financing 2–7 days $10K–$5M+ 2–7 years Revenue-producing equipment, fleet, machinery Equipment Financing
Invoice Factoring 1–3 days Based on invoices Ongoing B2B businesses with slow-paying customers Invoice Factoring
Purchase Order Financing 3–7 days Based on PO PO cycle Fulfilling large customer orders without draining cash PO Financing
Commercial Real Estate 3–8 weeks $250K–$10M+ 5–30 years Property acquisition, refinance, investor growth CRE Financing

Ranges are illustrative. Actual terms depend on business profile, credit, revenue, and lender. PMF LA helps you understand what you qualify for before you apply.

Head-to-head comparisons

The four most common funding decisions — broken down plainly so you know which path fits before you spend time on the wrong one.

SBA Loans vs. Working Capital

These are not interchangeable. SBA loans and working capital solve different problems at different timelines.

SBA LoansWorking Capital
Speed2–8 weeks depending on program1–5 business days
DocumentationFull business financials, tax returns, projectionsBank statements, revenue history
RepaymentMonthly, 10–25 yearsDaily or weekly, 3–24 months
RatesLower — SBA rate caps applyHigher — factor rates or short-term APR
Best forExpansion, real estate, equipment, refinancingPayroll, inventory, cash flow gaps, fast needs
Fits whenYou have time, documentation, and a defined projectSpeed matters more than cost

SBA loans overview · Working capital overview

Business Line of Credit vs. Term Loan

Both provide business capital but with different structures. The right choice depends on how predictable the need is.

Business Line of CreditTerm Loan
StructureRevolving — draw, repay, draw againLump sum — fixed amount, fixed repayment
InterestOnly on the drawn balanceOn the full loan amount
Best forVariable or recurring needs, seasonal gapsOne-time defined expense, equipment, expansion
PredictabilityFlexible — pay down and redraw as neededPredictable — same payment every cycle
Fits whenCash flow varies or needs are unpredictableYou know exactly what you need and when

Line of credit overview · Term loans overview

Invoice Factoring vs. Working Capital

Both solve cash flow gaps, but from different sources. Factoring converts receivables. Working capital advances against revenue.

Invoice FactoringWorking Capital
How it worksSell outstanding invoices at a discount for immediate cashAdvance against future revenue or cash flow
Best forB2B businesses with slow-paying customers or long net termsAny business needing fast operating capital
Credit focusYour customers' creditworthinessYour business revenue and history
RepaymentWhen your customer pays the factorDaily or weekly from your revenue
Fits whenCash gap is caused by outstanding receivablesCash gap is general operating or growth need

Invoice factoring overview · Working capital overview

SBA 504 vs. Commercial Mortgage

Both finance commercial property, but for different buyer profiles and timelines.

SBA 504 LoanCommercial Mortgage
Property typeOwner-occupied — business must occupy 51%+Owner-occupied or investment property
Down paymentAs low as 10%Typically 20–35%
RatesFixed below-market on the SBA portionMarket rates, fixed or variable
ProcessMore complex — CDC, lender, and SBA all involvedMore direct — lender to borrower
Fits whenOwner-occupied property, want lower down payment and fixed rateInvestment property or faster, simpler process preferred

SBA 504 overview · Commercial real estate financing

Which funding type fits your situation?

Match your primary need to the funding structure most likely to fit. PMF LA helps you confirm the right path before you spend time on applications.

Fast cash need

Payroll, inventory, or gap

You need capital in days, not weeks. Revenue is consistent. You need to bridge a gap or cover an immediate operating need.

→ Working capital or business line of credit

Growth project

Expansion, new location, or hire

You have a defined project. You have time to document it. You want the best possible terms on a structured, longer-term loan.

→ SBA 7(a) or term loan

Variable needs

Seasonal or unpredictable cash flow

Your cash flow varies by month or season. You want access to capital you can draw when needed without paying for what you do not use.

→ Business line of credit

Equipment purchase

Trucks, machinery, or equipment

You need a specific piece of equipment that will generate revenue. The equipment can serve as collateral. You want fixed payments tied to the asset.

→ Equipment financing

Outstanding invoices

Slow-paying B2B customers

Your cash flow gap is caused by customers on net 30, 60, or 90 terms. You have outstanding invoices that have not been paid yet.

→ Invoice factoring

Property

Commercial real estate purchase

You want to buy the property your business occupies — or acquire investment property. You want to build equity instead of paying rent.

→ SBA 504 or commercial mortgage

What makes PMF LA different from a marketplace or a bank

Most business owners end up on a marketplace that routes them to whoever pays a referral fee, or at a bank that only offers what the bank sells. PMF LA works differently.

Not a marketplace

Marketplaces match borrowers to lenders automatically and earn referral fees. PMF LA works with business owners before any application — helping them understand what fits their situation, not what's easiest to place.

Direct lender access, not a single-product shelf

A bank recommends what the bank sells. PMF LA covers SBA loans, working capital, lines of credit, equipment financing, factoring, PO financing, and commercial real estate — with a direct partnership with Newtek, a nationally recognized SBA preferred lender, and a network of banks and lenders across all product types.

Independent guidance first

PMF LA's first step is a conversation about the business, the need, and the options — not an application. That conversation prevents business owners from spending time on the wrong path and improves outcomes when they do apply.

Why PMF LA How it works

Common questions about comparing business funding

What is the difference between SBA loans and working capital?
SBA loans are government-backed programs with longer terms, lower rates, and more documentation. Working capital is faster with less documentation — best for payroll, inventory, and short-term needs. The right choice depends on your timeline, how funds will be used, and your business profile.
Is a business line of credit better than a term loan?
A line of credit is better when needs are recurring or variable — you draw only what you need and repay on a revolving basis. A term loan is better for a one-time, defined expense with a clear repayment plan. Many businesses use both for different purposes.
What are the best alternatives to a merchant cash advance?
The best alternative depends on your situation. For businesses with revenue history, working capital loans or a business line of credit often offer better terms. For businesses with time and documentation, SBA Express or SBA 7(a) provide longer terms and lower rates. Invoice factoring works when cash gaps come from outstanding receivables. PMF LA helps you find the right one before you commit.
How do I compare SBA loans, working capital, and invoice factoring?
SBA loans suit structured growth, real estate, or refinancing. Working capital suits fast, short-term cash needs. Invoice factoring suits B2B businesses with outstanding receivables. The comparison comes down to how the funds will be used, how quickly they are needed, and how long the business has been operating.
What is the best funding option for short-term cash flow gaps?
For short-term cash flow gaps, working capital and business lines of credit are typically the most practical. Working capital provides a lump sum quickly. A line of credit lets you draw only what you need and repay as revenue comes in. If the gap is caused by slow-paying customers, invoice factoring is also worth comparing.
Can PMF LA help me compare business funding options?
Yes. PMF LA helps business owners compare SBA loans, working capital, business lines of credit, equipment financing, invoice factoring, purchase order financing, and commercial real estate funding before they choose a path. The goal is to match the right structure to the need before time is spent on the wrong application.

Not sure which funding option fits?

PMF LA helps business owners compare options before they apply — so they spend time on the right path, not the wrong one. Based in Los Angeles. Serving businesses across the U.S. and Canada.