This loan provides your business with a cash advance either against your merchant credit card sales, or from your gross monthly sales. This still applies even if you didn’t accept credit cards as a form of payment! This is a wonderful alternative to a small business loan in that these funds are against all future sales and deposits.
SBA doesn’t make direct loans to entrepreneurs to start or grow businesses. It guarantees banks and lenders for the money they lend to small businesses owners.
A business line of credit gives access to a pool of funds to draw from when you need capital. With a line of credit, you have the flexibility to borrow up to a set amount. You’ll only repay what you withdraw, at an agreed upon interest rate and term.