Best Small Business Financing Options

Starting your own business can be incredibly rewarding but also daunting. Beyond having a solid business plan, you need financing for your business to grow and succeed. Access to funding is typically the lifeblood of any small business. Without access to adequate funding, business growth and operations can’t be possible. You need capital to hire new employees and purchase the best tools for your business operations to remain competitive.

According to a LendingTree analysis, most businesses fail within the first few years due to a lack of funding. You need to have a reliable source of capital when starting your business to cover operating expenses and company-related purchases.

Fortunately, there are many ways that you can access funding for your small business. One of the easiest and fastest to finance your small business is by applying for a short-term loan with a trusted online lender like My Canada Pay. With this option, you can qualify for a loan even with bad credit, and your application is processed the same day. Besides online lenders, here are other financing options for small businesses you might want to consider:

1. SBA loans

SBA loans are one of the best financing options for small businesses due to their favorable interest rates and repayment terms. These loans are usually government–guaranteed and can be used for different long-term and large funding purposes. SBA loans also make an excellent option if you don’t meet traditional banks’ eligibility requirements but have solid finances and good credit.

With federal backing, SBA loans allow you to access the funding you need for your small business at an incredibly low rate. Depending on your unique needs, you can choose from a wide range of SBA loans. Typically, different SBA loans have different qualification requirements and loan limits.

2. Crowdfunding

If you can’t qualify for an SBA loan or don’t want to pile on debt, you can access the funding you need for your small business through crowdfunding. Apart from giving you access to funding, crowdfunding allows you to boost your brand awareness among potential customers and investors while test-marketing an idea.

Thankfully, there are hundreds of crowdfunding platforms online that you can use to raise capital for your small business. These equity crowdfunding platforms allow you to pitch your business to many potential investors and raise the funds you need to get your startup business through the initial stages. When choosing a crowdfunding platform, make sure you know how it operates, who can invest, the fees you need to pay, and how they can help you reach your financial goal.

3. Angel investors and Venture Capitalists

Another outstanding option is finding angel investors to invest in your small business. Angel investors usually invest in startups or businesses in their early stages, even when they don’t have any demonstrable growth. Apart from investing their money in your business, an angel investor can also assist and guide you along the way, saving you a lot of money in the long run.

A venture capitalist can also be a great source of financing for your small business. Unlike angel investors, venture capitalists provide funding for your business in exchange for part ownership of your company. However, you can negotiate the percentage of ownership to give to the venture capitalist based on your company’s valuation. They can also provide you with knowledge, guidance, and industry connections.

4. Merchant Cash Advances

You can also finance your small business using merchant cash advances (MCAs). Merchant cash advances allow you to access a large amount of money via a financial provider in exchange for a portion of future sales receipts. That means every time you process a debit or credit card sale, your financial provider takes a small portion of it until the advance and related fees are fully repaid.

A merchant cash advance can be an excellent financing option for your small business if you usually have a high sales volume and don’t qualify for a traditional small business loan but need fast access to cash.


While the best financing option often depends on the amount you need and purpose, your company’s size, industry, and timeframe,  the above options can help you access the funding you need to run and grow your business fast and efficiently. When choosing the best financing option, understand your business’s cash flow and the option that would best meet your financial needs.

Like any other type of loan, ensure that you also check the lender’s reputation, qualification requirements, annual percentage rates, funding speed, and additional costs before applying for a small business loan.