Business funding, explained in three minutes.
Six kinds of business funding, what each one is for, what it usually costs you in time and money, and what funding partners look at before they decide. Pick a chapter or watch it straight through.
Full Port Financial is not a lender. Financing is provided by third-party funding partners.
Match the money to the job.
A few honest footnotes.
Every word of the narration.
0:01Match the money to the job
Need money for the business? Then, match the loan to the job, because the wrong one can cost more than the problem itself.
Ask three questions about what the money is for and how fast you need it and how you repay it.
Your answers point to the right product and the first rule of the harbor says fast money always costs the most.
0:31Term loans
A term loan is a single lump sum that you repay on a set schedule, over one to ten years, for a project.
Picture a baker buying a bigger oven who already knows the price and the payment and the payoff date up front.
0:51SBA loans
An SBA loan is bank money backed by the government which brings longer terms and lower rates and often the cheapest funding.
The trade is patience because the paperwork and the funding can take one to three months so plan a full season ahead.
1:11Lines of credit
A line of credit behaves like a charge card for your business. Borrow whatever you need, and pay interest only on that portion.
The market merchant draws it to stock up before the harvest fair, then repays it after. Soon the full limit is ready again.
1:31Equipment financing
Equipment financing uses the machine as collateral so approval is easier and the payments run while the machine earns.
1:41Revenue-based financing
Revenue-based financing is the fastest money here with cash in a day or two repaid from your daily sales.
It is the most expensive so use it for a short need that pays off fast and not for working capital.
2:01Microloans
A microloan runs up to fifty thousand dollars and suits new ventures and first equipment and usually includes a mentor.
2:11What funding partners look at
Every lender weighs your personal credit, along with your time in business, your monthly revenue, and whether the new payment really fits.
Clean bank statements matter more than owners think since repeated overdrafts are the fastest no a lender gives.
2:31Getting ready to apply
Before you apply, clear up any errors on your credit, pay down what costs the most, and keep business money separate.
Do not apply everywhere at once but pick the right product and a few lenders and ask why if one refuses.
2:51Find your berth
Financing is only a tool so borrow what pays and let Full Port Financial find your berth.
Plain-English guides to each option.
Talk it through before you decide.
Tell us about your business and what the money is for. An advisor will walk you through the options that may fit, with no pressure and no obligation.