Question 1

What is small business funding?

Accepted Answer

Small business funding refers to capital solutions designed specifically for small and medium-sized businesses. This includes various financing options like business loans, merchant cash advances, lines of credit, equipment financing, and invoice factoring. These funding solutions help businesses cover operational costs, expand operations, purchase inventory, hire staff, or manage cash flow gaps.

Question 2

How much funding can my small business qualify for?

Accepted Answer

Funding amounts vary based on your business profile, revenue, time in business, and credit score. Merchant cash advances typically range from $5,000 to $500,000, while business term loans can go from $25,000 to $5 million. SBA loans often range from $50,000 to $5 million. FunderMatch's AI analyzes your business to show you realistic funding amounts from lenders likely to approve you.

Question 3

What's the difference between a business loan and merchant cash advance?

Accepted Answer

Business loans provide a lump sum with fixed monthly payments over a set term, typically with lower interest rates. Merchant cash advances provide upfront capital that's repaid as a percentage of daily credit card sales, offering faster approval but potentially higher costs. Cash advances are ideal for businesses with fluctuating revenue, while term loans work better for predictable expenses.

Question 4

How do I qualify for small business funding?

Accepted Answer

Qualification requirements vary by lender and funding type. Generally, lenders look at time in business, monthly revenue, credit profile, industry and bank account health, and each sets its own minimums. FunderMatch's marketplace includes lenders with a wide range of requirements, from those that work with newer businesses and lower credit to those that require established businesses with strong financials, and matching shows you the ones that fit your profile.

Question 5

How fast can I get small business funding?

Accepted Answer

Funding speed depends on the type of financing and the lender. Merchant cash advances and short-term online loans are usually the fastest, often funding within a few business days of approval. Traditional bank loans and SBA loans can take several weeks. FunderMatch shows each lender's typical funding speed so you can choose based on your urgency.

Question 6

Will applying for funding hurt my credit score?

Accepted Answer

Building your profile and viewing matches on FunderMatch does not require a hard credit inquiry. If you decide to move forward with a specific lender, that lender may run its own credit check as part of underwriting and will tell you before it does.

Question 7

What documents do I need for small business funding?

Accepted Answer

Most lenders require 3-6 months of business bank statements, a government-issued ID, and basic business information. Some may also request tax returns, profit/loss statements, or accounts receivable reports. FunderMatch's application process guides you through exactly what you need, and our AI can analyze uploaded documents to strengthen your application.

Question 8

Can I get business funding with bad credit?

Accepted Answer

Often, yes. A number of lenders and funders on FunderMatch work with business owners whose credit is in the 500s, because they weigh business cash flow and revenue more heavily than personal credit. Rates are usually higher with lower credit, and matching helps you find the most competitive options available for your situation rather than applying blindly.

Small Business Funding: Compare Every Option and Get Matched

Types of Small Business Funding

Merchant Cash Advance

Business Term Loans

Line of Credit

SBA Loans

Why Choose FunderMatch for Your Business Funding

How to Qualify for Small Business Funding

Time in Business

Monthly Revenue

Credit Score

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Small Business Funding FAQs

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