One of the questions I hear most often from business owners is:
"What's the best type of funding for my business?"
The answer is simple...
It depends.
There is no one-size-fits-all financing solution. Every business is unique. Your credit profile, time in business, annual revenue, profitability, cash flow, industry, and long-term goals all determine which financing product is best for you.
At Fugio Funding Network, we believe every business owner deserves a funding strategy, not just another loan.
We currently offer ten different funding products, each designed to solve a different business challenge.
Our Funding Products
Merchant Cash Advance
Revenue-Based Loan
Equipment Financing
SBA Loan
Bank Term Loan
Business Line of Credit
Business Credit Card Stacking
Invoice Factoring
Purchase Order Financing
Sale-Leaseback Funding
Let's look at each one.
Merchant Cash Advance (MCA)
Merchant Cash Advances account for approximately 70% of the alternative business funding market.
An MCA is not a loan.
It is an advance against your future receivables.
Generally speaking, businesses with:
A personal credit score of approximately 550 or higher
At least six months in business
Consistent business deposits over the previous four to six months
may qualify.
Merchant Cash Advances exist because they solve one problem extremely well:
Speed.
Many qualified businesses can receive funding in just a few business days.
However, speed comes with a cost.
Merchant Cash Advances typically carry higher financing costs than traditional lending products and should be viewed as a short-term working capital solution, not a permanent financing strategy.
At Fugio Funding Network, we rarely view an MCA as the finish line.
Instead, we use it as a stepping stone while helping our clients build toward lower-cost financing in the future.
Business Line of Credit
If I had to choose the single best financing product available for most established businesses, it would be the Business Line of Credit.
A line of credit allows you to:
Borrow only what you need.
Repay the balance.
Borrow again without submitting a new application.
That flexibility makes it one of the most valuable financing tools available.
Typical qualifications include:
Approximately a 720 personal FICO score
A FICO® SBSS® score of 200 or higher
Two or more years in business
Filed business tax returns
Demonstrated profitability
Strong business cash flow
A non-restricted industry
Rates generally begin around Prime plus a margin, depending on the lender and overall risk profile.
Unfortunately, not every business owner qualifies today.
Our job is to help you qualify tomorrow.
Understanding the FICO® SBSS® Score
One of the biggest misconceptions in business lending is that lenders only evaluate your personal credit score.
They don't.
Many banks and traditional commercial lenders also use the FICO® Small Business Scoring Service (FICO® SBSS®) to evaluate business loan applications.
This score combines your personal credit history with your company's financial strength and business credit profile.
While underwriting models vary by lender, the FICO SBSS score generally considers:
35% Personal Credit History
30% Business Financial Performance
10% Equifax Business Credit
10% Experian Business Credit
5% Dun & Bradstreet® Business Credit
10% Industry and Market Risk
That means two business owners with identical personal credit scores may receive completely different lending decisions.
Why?
Because lenders also evaluate profitability, business credit, cash flow, payment history, and how your company compares to similar businesses in your industry.
The stronger your FICO SBSS score, the more financing options become available, usually at significantly lower interest rates.
This is one of the primary reasons we perform a full consultation before recommending any funding product.
Business Term Loans
Business term loans are another outstanding financing product, but they are among the most difficult to obtain.
Most lenders require:
Two years of business tax returns
Profit & Loss Statements
Balance Sheets
Debt Schedules
Business bank statements
Strong personal guarantees
Approximately a 720 personal FICO score
A FICO SBSS score of 200 or greater
Demonstrated profitability
Many traditional term loans are priced using Treasury-based indexes plus a margin.
These products generally provide significantly lower borrowing costs than alternative financing but require much stronger qualifications.
SBA Loans
SBA financing offers some of the longest repayment terms available.
These loans are commonly used for:
Business acquisitions
Commercial real estate
Expansion
Working capital
Partner buyouts
Refinancing existing debt
The application process is detailed, but qualified businesses often receive excellent repayment terms.
Equipment Financing
Need equipment?
Equipment financing can be used for:
Construction equipment
Manufacturing equipment
Medical equipment
Restaurant equipment
Commercial vehicles
Technology
Most lenders require:
Approximately a 575+ credit score
A vendor invoice
Business revenue
The lender generally pays the equipment vendor directly.
Invoice Factoring
Invoice Factoring allows businesses to convert outstanding invoices into immediate working capital.
Instead of waiting 30, 60, or 90 days for payment, a factoring company purchases your receivables and advances cash immediately.
Factoring works especially well for:
Transportation
Staffing
Manufacturing
Government Contractors
Business-to-Business service companies
Many factoring relationships continue for years.
Purchase Order Financing
Purchase Order Financing helps businesses fulfill large customer orders.
If you've landed a major contract but don't have the cash to purchase inventory or materials, purchase order financing allows you to complete the order without exhausting your working capital.
Business Credit Card Stacking
Business Credit Card Stacking is one of our most popular startup funding solutions.
Qualified business owners with strong personal credit may qualify for multiple business credit cards, many featuring introductory 0% APR promotional periods.
These funds can be used for:
Startup costs
Marketing
Inventory
Hiring employees
Equipment
Expansion
When used responsibly and paired with a long-term funding strategy, business credit cards can become an incredibly valuable financing tool.
Sale-Leaseback Funding
If your business owns valuable equipment, you may be able to unlock the equity without giving up its use.
With a Sale-Leaseback transaction:
You sell the equipment.
Receive working capital.
Lease the equipment back.
Continue operating without interruption.
This is an excellent liquidity tool for established businesses.
Which Product Is Right for You?
That depends on your business.
Every recommendation should consider:
Personal Credit
FICO® SBSS® Score
Business Credit
Revenue
Cash Flow
Profitability
Industry
Time in Business
Existing Debt
Funding Purpose
Long-Term Growth Goals
The best financing isn't always the fastest financing.
It's the financing that positions your business for long-term success.
The Fugio Funding Network Difference
At Fugio Funding Network, we don't simply submit applications.
We begin every relationship with a comprehensive funding consultation.
Our goal is to understand where your business is today, determine which financing products are available now, and build a Funding Action Plan that positions your business for stronger financing opportunities in the future.
Sometimes that means using a Merchant Cash Advance as a bridge.
Sometimes it means qualifying immediately for a Business Line of Credit.
Sometimes it means spending the next six to twelve months strengthening your business so you can qualify for premium financing later.
Every business is different.
Every funding strategy should be different.
Business funding isn't just about getting approved.
It's about understanding why you qualify, what you qualify for, and how to qualify for even better financing in the future.
That's the Fugio Funding Network difference.
George Wisniewski Funding Director Fugio Funding Network
