Types of business funding
The product you apply for should follow the path that fits — not the other way around. Start with the category, then check Funding Fit for your profile.
Fundember Editorial · Reviewed August 2026 · Methodology
Debt
You keep ownership. You repay.
Equity
Capital for ownership. No loan to repay.
How to choose
01
If you can wait and want the lowest cost
Look at SBA 7(a) for general use, or SBA 504 for a building or long-life equipment.
02
If you need a lump sum soon
A conventional term loan is usually faster than SBA, at a higher typical cost.
03
If the need keeps coming back
Inventory, payroll gaps, and seasonal swings usually fit a line of credit better than a term loan.
04
If you are building a high-growth company
Angel and VC replace debt entirely for founders raising a round.
Check which path may fit
Start with your purpose. We’ll score the landscape before you apply.
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