Business Loan Types: Your Complete Guide to Small Business Financing
Choosing the right loan product can make or break your business. This guide breaks down every major business loan type — from SBA and commercial loans to equipment financing, factoring, and alternative options — so you can make an informed decision. Find out how Liberty Capital can be your best business loan types in Delaware under one roof without application fees and multiple options for multiple business loan types of funding and capital to help all types of credit and business profile. Commercial loans at your convenience!
Compare credit requirements, revenue thresholds, loan amounts, rates, benefits, and drawbacks side-by-side. Find the product that matches your situation — even with less-than-perfect credit.
Primary Business Loan Products
Five core financing options — each matched to specific business needs
Factoring
Unlock cash tied up in outstanding invoices. Advance on receivables instead of waiting 30-90 days for payment.
- Credit Score: 550+
- Time in Business: Any
- Monthly Revenue: $10,000+
- Loan Amount: $2k+
- Rate Range: 10%–25%
Small SBA Loans
Government-backed loans with competitive rates. Great for established businesses ready to expand or refinance debt.
- Credit Score: Any
- Time in Business: 12+ months
- Monthly Revenue: $20,000+
- Loan Amount: $1k – $3MM
- Rate Range: 7%–15%
Equipment Loan
Finance new or used equipment with the asset itself as collateral. Preserve cash while acquiring revenue-generating assets.
- Credit Score: 500+
- Time in Business: Any
- Monthly Revenue: Any
- Loan Amount: $20k – $5M
- Rate Range: 8%–36%
Large SBA Loans
Major financing for real estate, acquisitions, and significant expansion. The lowest rates and longest terms available.
- Credit Score: Any
- Time in Business: 12+ months
- Monthly Revenue: $20,000+
- Loan Amount: $200k+
- Rate Range: <10%
Commercial Loans
Financing for commercial real estate, 4+ unit properties, and major commercial investments. Build equity while you operate.
- Credit Score: 650+
- Time in Business: Any
- Monthly Revenue: Any
- Loan Amount: $150k+
- Rate Range: 7%–18%
Benefits & Drawbacks at a Glance
Every loan type has trade-offs — here’s the honest breakdown
| Loan Type | ✓ Benefits | ✗ Drawbacks |
|---|---|---|
| Factoring | Perfect credit not required. Fast access to cash tied up in invoices. | Customers may prefer dealing directly with your business. Can be higher cost depending on situation. |
| Small SBA | Low APR, fixed or variable rates. Startup financing available. Commercial property financing. Low down payment. | Longer application process. Requires personal guarantee, collateral, and down payment. |
| Equipment Loan | Lowest interest rate to buy equipment (vs MCA). Tax deductible & depreciation benefits. Own the equipment outright. Monthly payments. | Equipment can become outdated. Higher down payment for bad credit. No early payoff discount. |
| Large SBA | Lowest interest rates of all loan types. Longer terms available. Ability to borrow larger amounts. | Application is time-consuming. Long approval and funding timeline. Down payment required. |
| Commercial Loans | Investment in 4+ unit commercial real estate. Build equity on property. Built-in collateral protects the loan. | LTV is never 100%. Must include plans to build a structure. Longer application process. |
📋 Documentation Required by Loan Type
Know what to prepare before you apply — save time and get funded faster. We all know low doc funding inherently have higher cost of capital. It’s bank only comprare to full financial will cost you more. It’s like buying a gallon of milk at 7/11 will cost more because you’re paying for convenience. Same thing for low doc funding. You provide less papers, not many funding stips you get money faster but you pay more to borrow. It’s a cost of doing business. Why working with us for best business loan types in Delaware will make it efficient for you and cost effective loans rates.
📄 Factoring Documents
- Invoice(s) to be factored
- A/R Aging Report
- Profit & Loss Statement
- Most recent year tax return
- Last 6 months bank statements
📄 Small SBA Documents
- Full financial package
- Year-to-date financials
- FICO score 680+
- Higher requirements — net worth documentation
📄 Equipment Loan Documents
- 1-2 years tax returns (for requests over $75,000)
- FICO score 650+
- 3 months business bank statements
- Invoice or quote for equipment to be financed
📄 Large SBA Documents
- 3 years tax returns
- Personal Financial Statement (PFS)
- Year-to-date financials
- FICO score 650+
📄 Commercial Loan Documents (Most Comprehensive)
- Personal Financial Statement (PFS)
- Personal Tax Return(s)
- Business Federal Tax Return(s)
- Business Financial Statement(s)
- Interim Balance Sheet (partial year)
- Notes Payable Schedule
- Projections
- Rent Roll (for multi-family/investment)
- Appraisal(s)
- Environmental Site Assessment(s)
- Site visit and pictures
- Survey(s), Title Policies
Top 8 Alternative Loan Options for Non-Bankable Borrowers
Can’t qualify for traditional financing? These alternatives may be the right fit
Merchant Cash Advance (MCA)
A lump sum of cash provided in exchange for a percentage of future sales, typically repaid daily or weekly based on credit card transactions. Quick and easy, but often high cost.
Invoice Financing (Factoring)
Advances cash against outstanding invoices, providing immediate funds without waiting for customers to pay. The lender collects directly from the invoiced clients.
Business Credit Cards
Revolving credit up to a certain limit — ideal for everyday expenses or smaller purchases. Often include rewards programs or introductory 0% interest rates.
Microloans
Small loans, usually under $50,000, designed for startups or micro-enterprises. Typically have shorter repayment terms and higher interest rates than traditional loans.
Bridge Loans
Short-term loans to bridge the gap between current funding needs and future anticipated cash. Commonly used for real estate transactions or temporary cash shortfalls.
Revenue-Based Financing
Provides funding in exchange for a percentage of future monthly revenue. Payments fluctuate based on performance, providing flexibility during slow months.
Personal Loans for Business
Personal loans used for business purposes, based on the borrower’s personal credit history rather than the business’s creditworthiness.
Collateral-Based Loans
Loans secured by personal or business assets, such as property or equipment. Collateral reduces lender risk, making it easier for borrowers with imperfect credit to qualify.
How to Choose the Right Loan Type
A simple framework for matching your situation to the right product
🎯 Start with These Questions
- What’s the purpose? Equipment, real estate, working capital, or expansion?
- How fast do you need it? Same-day MCA vs. 30-day SBA?
- What’s your credit score? Determines eligibility tiers
- How much revenue do you generate? Monthly deposits matter
- Do you have collateral? Changes rates and terms significantly
- How long in business? Startups vs. established have different programs
✅ Match Use Case to Product
- Equipment purchase → Equipment Loan or Lease
- Real estate → Commercial Loan or Large SBA
- Invoice gaps → Factoring
- Seasonal cash flow → Line of Credit
- Expansion/growth → Small SBA or Term Loan
- Emergency bridge → Bridge Loan or Working Capital
- Poor credit + need cash → MCA (last resort)
🤝 Not Sure Which Is Right?
With one application, Liberty Capital reviews multiple loan types to find the best fit for your situation — even with less-than-perfect credit. We’ll tell you honestly which product makes sense.
Frequently Asked Questions
Straight answers about business loan types
Get Approved. Get Funded.
Complete one application and unlock multiple funding options. Whether you need equipment financing, working capital, SBA, or a commercial loan — we’ll find the right fit for your business.
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