Below are the top business loans for established companies, with common use cases, typical structures, and preparation tips. Terms and pricing vary by lender and market conditions; always review current disclosures.
1) SBA 7(a) Loans
Best for: Working capital, refinancing eligible debt, partner buyouts, business acquisitions, and general expansion.
- Typical amounts: Up to $5 million
- Typical terms: Up to 10 years for working capital; up to 25 years for real estate
- Interest: Often variable (commonly benchmark plus a margin)
- Speed: Several weeks to a few months (documentation-heavy)
Why established businesses choose it: Favorable rates and long amortization can reduce monthly payments, supporting larger growth initiatives without straining cash flow.
Learn more in this comprehensive SBA loan guide and the fast-track SBA Express loan overview.
2) SBA 504 Loans
Best for: Owner-occupied commercial real estate purchase or major fixed-asset projects (e.g., heavy equipment).
- Typical amounts: Projects can exceed $5 million when combining bank + CDC portions
- Terms: Up to 25 years for real estate; fixed or variable components
- Structure: Bank first-lien + Certified Development Company (CDC) second-lien
Why established businesses choose it: Lower down payments and long, fixed-rate second-lien financing can make facility purchases more affordable and predictable.
3) Traditional Bank Term Loans
Best for: Predictable capital needs with strong financials and collateral.
- Typical amounts: $100,000 to several million
- Terms: 3–7 years (longer with real estate)
- Rates: Often competitive for well-qualified borrowers
Use cases: Facility upgrades, equipment purchases, marketing expansions, or refinancing higher-cost debt. If you’re comparing structures, see our guide to the term loan for small business and explore a general Term Loan overview.
4) Business Line of Credit
Best for: Seasonal swings, inventory buys, short-term cash flow gaps, and on-demand flexibility.
- Typical limits: $50,000–$1 million+ (varies widely)
- Rates: Bank lines can be benchmark plus a margin; online lines may price higher
- Draws: Pay interest only on what you use
Why established businesses choose it: Flexible access reduces the need to reapply for new loans each time a short-term need arises. Learn more in this business line of credit overview and the full Business Line of Credit page.
5) Equipment Financing and Leasing
Best for: Machinery, vehicles, and technology upgrades that drive productivity.
- Terms: Commonly 2–7 years
- Rates: Vary by credit, equipment type, and useful life
- Collateral: The equipment typically serves as collateral
Use cases: Manufacturing, construction, logistics, and medical practices. Review the detailed equipment financing guide and the Equipment Financing page.
6) Invoice Factoring (Accounts Receivable Financing)
Best for: B2B firms with slow-paying customers and strong receivables.
- Advance rate: Often 80%–90% of eligible invoices
- Cost: Typically a fee or discount rate per 30-day period
- Speed: Can be fast once set up
Why established businesses choose it: Converts AR into immediate working capital without adding traditional debt to the balance sheet. See the full invoice factoring guide.
7) Asset-Based Lines of Credit
Best for: Companies with significant AR, inventory, or other assets to borrow against.
- Structure: Revolving credit line with borrowing base certificates
- Collateral: AR, inventory, sometimes equipment
- Pricing: Often benchmark plus a spread; fees may apply
Why established businesses choose it: Larger credit availability tied to assets, with monitoring to scale as you grow.
8) Online Business Loans (Short-Term and Mid-Term)
Best for: Faster approvals when timing is critical (e.g., inventory buys, campaigns, or bridging opportunities).
- Amounts: Commonly $25,000–$500,000+
- Terms: 6–36 months (varies widely)
- Speed: As fast as a few days with streamlined documentation
Considerations: Convenience can come with higher cost. Compare the pros and cons and see typical structures on the Short-Term Online Loan page.
9) Revenue-Based Financing (RBF)
Best for: Companies with strong, predictable revenue who prefer payments tied to monthly sales.
- Structure: Investors receive a percentage of monthly revenue until a fixed multiple is repaid
- Use cases: Subscription/SaaS, eCommerce with steady sales, and consumer brands
- Considerations: Effective cost depends on speed of repayment and revenue volatility
Explore common mechanics on the Revenue-Based Financing page.
10) Merchant Cash Advance (MCA)
Best for: Immediate access when other options are limited; typically used short term.
- Structure: Purchase of future receivables with daily/weekly remittances
- Considerations: Higher cost; evaluate carefully against ROI and cash flow
Learn more in the merchant cash advance guide.
11) Commercial Real Estate Loans
Best for: Buying, building, or refinancing owner-occupied property.
- Terms: Commonly 10–25 years (amortization may extend further than balloon)
- Rates: Often competitive for well-qualified borrowers
Consider combining with SBA 504 to reduce down payments and secure long-term fixed-rate portions.
12) Business Acquisition Loans
Best for: Buying a competitor, expanding to a new geography, or executing a succession plan.
- Structures: SBA 7(a), bank term loans, and seller financing
- Key factor: Historical cash flow and post-acquisition DSCR
See the dedicated overview on business acquisition loans.
Expert insight: Established businesses don’t just look for the lowest rate; they optimize for the right blend of cost, term length, covenants, and speed. A slightly higher rate with a longer term can materially reduce monthly payments and free up cash for growth.
