Types of Small Business Loans No More Bank Loans Offers both Traditional Alternative Financing

Discover the ideal loan to fuel your business success (or variation: We offer a diverse range of small business loans to fit your goals)

TYPES OF BUSINESS LOAN

At No More Bank Loans, we believe choosing the right loan shouldn’t feel like guesswork. That’s why we created this guide—to help you understand the different types of small business loans available. We work with a wide range of lenders across all major loan categories, and when you’re ready, we’ll have multiple lenders competing to fund your business. But first, let’s make sure you know exactly what you’re getting into—because the right loan should work for you, not against you.

What Kind of Small Business Loans Are Available?

There are many types of small business loans, and they’re definitely not one-size-fits-all. Some are great for long-term growth, others are quick fixes when you need cash fast. Here’s a breakdown of the most common types of small business loans, along with a few lesser-known options you might not have considered.

Small Business Loans

SBA loans are one of the most well-known types of small business loans—and for good reason. They offer some of the best terms out there: low interest rates, long repayment periods, and flexibility in how the funds can be used. Whether you’re looking to buy equipment, purchase real estate, or just boost working capital, there’s likely an SBA loan that fits the bill.

The most common SBA loan programs include:

Merchant Cash Advances (MCA)

Merchant Cash Advances are kind of the wild west of small business financing. They’re fast—really fast—but they can also be really expensive. Instead of a traditional loan, you get a lump sum in exchange for a portion of your future sales. Payments are often pulled daily or weekly, which can put serious pressure on your cash flow.

MCAs can be tempting when you’re in a tight spot, but they come with high factor rates and short repayment terms. It’s not uncommon for businesses to pay back forty to fifty percent more than they borrowed within just a few months.

At No More Bank Loans, we don’t offer MCAs—and we never will. But if you’re already stuck in one, don’t worry. We have smarter, more sustainable funding options that can help you get out of that cycle and back in control.

Equipment Financing

Need a new food truck, industrial oven, bounce house—or even a carnival ride or roller coaster? Equipment financing might be your best bet. This type of small business loan is exactly what it sounds like—funding to purchase equipment that your business needs to operate or grow. The equipment itself often serves as the collateral, which makes these loans easier to qualify for, even if your credit isn’t perfect. Terms can be flexible, and approvals are often faster than something like an SBA loan. Just be careful—some lenders sneak in high interest rates or hidden fees, especially if you don’t read the fine print.

At No More Bank Loans, we work with lenders that keep it simple and transparent. And if equipment is just one piece of your puzzle, we can often package that into a broader financing plan.

Short-Term Business Loans

Sometimes you just need a quick burst of cash to cover a gap—maybe it’s a slow season, a sudden repair, or an opportunity you don’t want to miss. That’s where short-term business loans come in. These loans are designed to be fast, flexible, and repaid in a shorter window—usually between three and eighteen months.

They’re easier to get than long-term loans, but that speed can come at a price. Interest rates are often higher, and payments may be daily or weekly, so cash flow needs to be solid.

We work with lenders who offer fair, transparent terms—and we’ll help you figure out if a short-term loan makes sense or if a line of credit might serve you better in the long run.

Working Capital Loans

Working capital loans are like your business’s financial cushion. They’re designed to help cover everyday operating expenses—think payroll, rent, inventory, or utilities—especially during times when cash flow is tight.

These loans don’t typically go toward big purchases like equipment or real estate. Instead, they’re more like a bridge to keep your business running smoothly between highs and lows.

The terms can vary a lot depending on your credit, revenue, and time in business. Some are structured like traditional loans, while others behave more like advances. Either way, the goal is the same—give your business breathing room.

Invoice Factoring

Waiting on customers to pay their invoices? Invoice factoring lets you turn those unpaid invoices into quick cash. Instead of sitting around waiting for Net 30, 60, or 90 terms to run out, a factoring company advances you a percentage of the invoice amount—usually around 80 to 90 percent—upfront. When your customer pays, you get the rest (minus a fee).

It’s not technically a loan, but it works like one. It’s a great option if you have reliable clients but slow payments, and you need the cash now to keep things moving.

We’ve seen it work well for service-based businesses, event vendors, and even seasonal companies with big swings in cash flow.

Funding Options for New Businesses

Getting a new business off the ground is exciting—but funding it can be a whole different challenge. If you’re just starting out, you’ve probably realized traditional banks aren’t lining up to help. That’s where creative funding strategies come in.

Grants can be a great starting point, especially for women-owned, minority-owned, or mission-driven businesses. But since they’re limited and competitive, many new business owners also turn to early-stage financing like our SLOC—a zero-interest line of credit that gives you breathing room to grow.

We’ve put together a full breakdown of options on our Startup Business Loans page—grants, low-risk loans, and what to watch out for. If you’re building something from the ground up, we’ll help you fund it the right way.

Commercial Real Estate Loans

Looking to buy a building, expand into a new location, or build something from the ground up? A commercial real estate loan might be what you need. These loans are specifically for purchasing, developing, or refinancing property used for business purposes.

They usually come with longer terms—ten, fifteen, even up to twenty-five years—and the rates are generally lower than short-term loans. But like SBA loans, they can take a little longer to close and usually require solid financials, good credit, and a clear plan for the property.

We help businesses navigate both traditional and alternative lenders to find the right fit—whether you’re eyeing a small office space or your very own amusement park lot.

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