Business Loans and Raising Capital

Raising Capital for your business depends on factors like your industry, financial standing, and growth stage. Here are the primary ways to raise funds and types of business loans available:

1. Equity Financing

2. Debt Financing (Loans & Credit)

3. Alternative & Asset-Based Financing

4. Bootstrapping & Personal Funding

The best option depends on your business stage, risk tolerance, and growth strategy. Strategix Partners will assist you in looking for funding for a specific project or business expansion.

For Startups

Starting a business can be tough without a financial track record, but these options can help:

1. SBA Microloans

Amount: Up to $50,000
Best for: Startups and early-stage businesses
Offered by: Nonprofit lenders approved by the SBA
Pro: Flexible use (working capital, inventory, equipment)
Con: Requires a solid business plan and sometimes collateral

2. Startup Business Loans from Online Lenders

Amount: Varies, often $5,000–$250,000
Best for: New businesses without long credit history
Pro: Faster approval, fewer requirements than banks
Con: Higher interest rates and shorter terms

3. Personal Loans for Business

Best for: Solopreneurs or very early startups
Pro: Can be easier to qualify if your personal credit is strong
Con: Personal liability and lower loan amounts

4. Business Credit Cards

Best for: Short-term expenses, building credit
Pro: Quick access to capital, reward points
Con: High interest if not paid monthly

5. Friends & Family Loans

Best for: Initial capital
Pro: Flexible terms
Con: Risk to relationships if not repaid

For Existing Businesses

Once your business has some history, more funding options become available.

1. SBA 7(a) Loans

Amount: Up to $5 million
Best for: General working capital, expansion, equipment
Pro: Competitive interest rates, long terms
Con: Lengthy approval process and paperwork

2. SBA 504 Loans

Best for: Purchasing real estate, heavy equipment
Pro: Fixed rates, long repayment terms
Con: Requires down payment (typically 10%)

3. Term Loans

Best for: One-time investments (inventory, marketing, upgrades)
Pro: Predictable payments, medium-to-large amounts
Con: May require good credit and 2+ years in business

4. Business Line of Credit

Best for: Managing cash flow, recurring short-term needs
Pro: Revolving credit, pay interest only on what you use
Con: Can be hard to qualify for if revenue is inconsistent

5. Equipment Financing

Best for: Buying machinery, tools, vehicles
Pro: Equipment acts as collateral
Con: Limited to the value of the equipment

6. Invoice Financing / Factoring

Best for: Businesses with slow-paying clients
Pro: Quick access to cash without taking on debt
Con: Costs can add up; you lose a percentage of your invoices

7. Merchant Cash Advances

Best for: Retail or businesses with strong credit card sales
Pro: Fast funding
Con: Very high fees and repayments are tied to sales