Business financing, explained.

What is business financing?

Business financing is any debt or equity capital used to fund a company. This guide covers debt financing — loans you repay with interest — which is how most U.S. small and mid-market businesses raise capital. Equity financing (selling ownership) is a different decision tree and not covered here.

Inflection Financing originates six debt products. Each exists because no single product fits every use case: timing, cost, collateral, and amortization all vary.

The six core products

• SBA 7(a) — up to $5M, 10–25 year terms, Prime + 2.25–4.75%. Best for acquisitions, owner-occupied CRE, and long-term working capital. 21–45 days to close.
• Bridge — up to $10M, 6–24 month terms, 8.9–13.9%. Best when you need to close in days, not weeks. 12-hour funding.
• Term loans — 1–7 year amortization, 9.9–14.9%. Best for refinancing high-cost debt or funding growth with predictable monthly payments.
• Working capital — $25K–$500K revolving lines, 9.9–17.9%. Best for receivables timing, inventory builds, payroll smoothing.
• Equipment — up to 100% LTV, 7.9–12.9%, collateralized by the asset. Best when the equipment is the collateral.
• Commercial real estate — including SBA 504. Long amortization, low rates, owner-occupied or investment.

How to get a business loan: step-by-step

1. Confirm eligibility. 12+ months operating, $25K+ monthly revenue, 600+ FICO for working capital or 680+ for SBA 7(a). See credit score minimums.
2. Pick the right product. Match timeline to use of funds. Long-term capital → SBA. Speed → bridge. Refinance → term. Read bridge vs term.
3. Assemble documents. 3 years of business and personal tax returns, YTD P&L and balance sheet, business debt schedule, SBA Form 413 (for SBA loans), and use-of-funds breakdown.
4. Run DSCR. Most declines are tight DSCR, not credit. Target 1.25x for SBA, 1.10x for bridge. See our DSCR guide.
5. Apply with a direct lender. Broker fees average 1–4% of principal — $10K–$40K on a $1M loan. Inflection Financing is bank-direct; there are no broker fees.
6. Close and fund. Bridge: 12 hours. Working capital: 1–3 days. SBA 7(a): 21–45 days through a Preferred Lender.

Startup business lenders: what to do when you're under 24 months

True startups don't fit standard SBA 7(a) qualifications (which require 24+ months of operations). Four paths still work:

• SBA 7(a) for acquisition. The 24-month test runs against the target, not the buyer. A new entity can buy an established business with SBA 7(a).
• SBA Microloan. Up to $50K, designed for early-stage businesses.
• Equipment financing. The equipment is the collateral, so revenue history matters less.
• Revenue-based working capital. Available after 6 months of bank statements and $15K+/month deposits.

2026 rate benchmarks

Anything materially above these ranges is broker margin or merchant-cash-advance pricing in disguise:

• SBA 7(a): 10.5–13.0%
• Bridge: 8.9–13.9%
• Term: 9.9–14.9%
• Working capital: 9.9–17.9%
• Equipment: 7.9–12.9%

What to avoid

• Factor rates instead of APR (typical MCA disguise — effective APR often 60%+).
• Origination fees above 3% (that's broker spread, not lender cost).
• Daily or weekly ACH debits (cash-flow killer).
• Refusal to disclose the funding bank (you're with a broker, not a lender).

Next steps

Use the loan calculator to estimate payments, take the SBA eligibility quiz, or apply for capital directly.