Match the Business Funding Conversation to the Need

Business financing can mean very different things: covering a seasonal cash gap, buying equipment, converting unpaid invoices into working capital, or funding an expansion. A short first conversation can help the owner find the right funding professional without suggesting a product is approved or suitable.

Ask what the funds will do

Start with the business goal and the amount and timing the owner has in mind. Ask whether the need is a one-time purchase or recurring cash flow, how long the funds are needed, and what source the business expects to use for repayment. A short-term cash-flow need and a long-lived asset purchase may call for different structures.

Understand the broad product families

• Working capital or a line of credit: May be considered for recurring operating needs, with availability and repayment set by the provider.
• Equipment financing: May be structured around a specific machine, vehicle, or other eligible equipment.
• Invoice factoring: A business sells or assigns eligible receivables for funding; fees, recourse, and customer-notification terms vary.
• Revenue-based advances: Repayment may be linked to sales or deposits and can have a different cost structure. Review the total repayment and payment frequency.
• SBA 7(a): An SBA-backed loan made through participating lenders. Eligible uses can include working capital and equipment, subject to SBA rules and lender underwriting.

These are broad descriptions, not recommendations. Compare total cost, payment frequency, collateral or guarantees, prepayment terms, and what happens if revenue falls short. Read the contract before signing.

Make an organized handoff

1. Confirm the client wants an introduction.
2. Share the funding purpose, requested amount, timeline, and business type—with permission.
3. Let the provider explain costs, eligibility, and the document process directly.
4. Encourage the owner to compare written terms and ask questions before committing.

General education only. Products, costs, eligibility, and availability vary by provider and business. No funding is guaranteed.