Revenue-Based Financing: Revenue-based financing offers short-term funding, particularly suited for profitable businesses with less established business credit. The borrowing amount is tied to your daily sales. Capital Gain Funding Corp Unlike traditional loans with interest rates, revenue-based financing utilizes factor rates, which are a fixed decimal number multiplied by your funding amount to determine the cost of capital.

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Interest doesn’t accumulate over time, and early repayment won’t reduce the total cost of capital. Term Loans: These loans, which can be either secured or unsecured, provide a lump sum of money. They typically have fixed interest rates and require repayment over one to five years through equal monthly installments. While they can be utilized for a variety of business expenses, these loans often have strict eligibility criteria and tend to impose higher interest rates on newly established businesses.