Types of Funding We Provide

At FundLocal, we understand that every business has unique needs, which is why we offer a range of funding solutions tailored to help small businesses thrive. Whether you’re looking to manage cash flow, purchase new equipment, or cover everyday expenses, we have the right funding options for you. Here's a closer look at the three main types of funding we provide:

1. Business Lines of Credit

A Business Line of Credit is one of the most flexible funding solutions for small businesses. It provides you with access to a set amount of funds that you can draw from as needed. You only pay interest on the amount you use, and once you repay it, those funds become available again.

Key Benefits:

• Flexibility: Borrow what you need, when you need it, up to your credit limit.

• Interest on Used Funds Only: You’re only charged interest on the money you draw, not the entire credit line.

• Revolving Credit: Once you repay, your available credit is restored, giving you ongoing access to funds.

• No Hard Credit Check for Quote: Receiving a quote won’t impact your credit score.

Ideal For:

• Managing cash flow during slow periods or seasonal fluctuations.

• Handling unexpected expenses like repairs or emergency purchases.

• Taking advantage of business opportunities without depleting cash reserves.

How It Works:

• You are approved for a specific credit limit.

• Draw funds as needed up to your limit, and only pay for what you use.

• Repay borrowed amounts on a schedule that works for your business.

• As you repay, those funds become available for future use.

2. Equipment Financing

Equipment Financing is designed to help you purchase or upgrade essential business equipment without the large upfront costs. This type of loan is secured by the equipment itself, meaning you don’t need to use other business assets as collateral.

Key Benefits:

• No Large Upfront Costs: Spread out the cost of expensive equipment over time, preserving your working capital.

• Fixed Monthly Payments: Predictable payments that make it easier to manage your cash flow.

• Ownership of Equipment: You own the equipment at the end of the financing term.

• Competitive Rates: Because the loan is secured by the equipment, interest rates are often more favorable.

Ideal For:

• Businesses in industries that rely on machinery, vehicles, or technology (e.g., construction, manufacturing, or auto repair).

• Replacing outdated equipment or expanding your operations with new tools.

How It Works:

• Choose the equipment your business needs.

• Apply for equipment financing and provide basic details about the equipment (make, model, price).

• Once approved, receive funds to purchase the equipment.

• Repay the loan over time, with the equipment serving as collateral.

3. Working Capital Loans

Working Capital Loans are short-term loans that provide businesses with the immediate cash they need to cover daily operating expenses. Whether you need to restock inventory, pay employees, or invest in marketing, a working capital loan helps ensure that your business keeps running smoothly.

Key Benefits:

• Fast Access to Cash: Get funds quickly to cover pressing expenses.

• Short-Term, Flexible Loans: Typically repaid over a shorter period than other loan types, allowing for quick resolution of short-term financial needs.

• No Hard Credit Check for Quote: The quote won’t affect your credit score.

• No Need for Collateral: Unlike equipment financing, no physical assets are required to secure the loan.

Ideal For:

• Covering everyday expenses like payroll, rent, or utilities.

• Restocking inventory for seasonal demand.

• Financing marketing campaigns or new business initiatives.

• Bridging the gap between receivables and operating expenses.

How It Works:

• Submit basic business information and recent bank statements to apply.

• Get a fast approval decision—typically within a few hours to the next business day.

• Once approved, receive the funds directly in your business checking account.

• Use the funds for any short-term business need, and repay the loan according to the agreed-upon schedule.

• Choose a Business Line of Credit if you need ongoing access to flexible funds for various business needs or unpredictable expenses.

• Choose Equipment Financing if you're making a large equipment purchase that will be used to improve or expand your business.

• Choose a Working Capital Loan if you need fast cash to cover short-term operational expenses like payroll or inventory.

At FundLocal, we aim to provide funding options that are straightforward and beneficial for your business’s unique needs. Whether you're managing cash flow or preparing for growth, we're here to support you at every stage. If you're unsure which option is right for you, our team is happy to help guide you through the decision-making process.

For more information or personalized assistance, feel free to browse the rest of our knowledge base or contact our support team. We're always here to help you find the right funding solution for your business.