Best for Speed: Working Capital / Revenue-Based Financing
If you need money in your account in 24 hours and don't want to deal with multi-week underwriting, working capital from a private lender is your fastest path. Approval based on three months of business bank statements, factor rate pricing, daily/weekly/monthly repayment.
Trade-off: total cost is higher than SBA. Use it when speed matters more than rate.
Best for Lowest Rate: SBA 7(a) Loans
SBA 7(a) loans offer the lowest rates available to New York small businesses (currently around 11-13% APR in 2026), longer terms (up to 10 years for working capital, 25 for real estate), and amounts up to $5M.
Trade-off: 60-120 day approval, extensive documentation, personal guarantee required, collateral typically required for loans over $50K.
Best for Equipment Purchases: Equipment Financing
When you're buying a specific piece of equipment, equipment financing usually beats working capital because the equipment itself serves as collateral, which lowers the rate. 12-60 month terms, fixed monthly payments, ownership at end of term.
Trade-off: funds can only be used for the equipment specified.
Best for Ongoing Cash Flow Needs: Business Line of Credit
If your need is unpredictable — bridging gaps between A/R and A/P, covering seasonal swings, or funding ad-hoc opportunities — a line of credit beats a term loan. Draw what you need when you need it, only pay interest on the drawn balance.
Trade-off: typically lower maximum amounts than term loans, may have draw fees.
Best for Bad Credit / Recently Started: Revenue-Based Financing
If your personal FICO is sub-650 or you've only been operating 6-12 months, revenue-based financing is the most accessible option. Repayment scales with monthly revenue, so slow months don't crush you.
Trade-off: highest cost of the funding types here. Use as a bridge to better credit access.
Comparison Table
| Funding Type | Speed | Amount | Rate (typical) | Best For |
|---|---|---|---|---|
| Working Capital | 4–24 hrs | $25K–$5M | Factor 1.15–1.49 | Speed, flexibility |
| SBA 7(a) | 60–120 days | Up to $5M | 11–13% APR | Lowest rate |
| Equipment Financing | 1–7 days | $25K–$5M | 6–18% APR | Equipment purchases |
| Line of Credit | 1–14 days | $25K–$1M | 8–25% APR | Ongoing cash flow |
| Revenue-Based | 4–24 hrs | $25K–$2M | 1.20–1.55 | Bad credit, new business |