Types of Credit Products
And Small Business Resources.
Business funding comes in a variety of shapes and sizes. The best solution for your company is the one that meets your short-term needs while also assisting you in achieving your long-term objectives.
Types of Small Business Funding
There are six main types of small business financing available through Spartan Capital — each designed for a different need, timeline, and business type. Understanding the differences will help you choose the right product and get the best terms.
Merchant Cash Advance (MCA)
A merchant cash advance gives you money now in exchange for a percentage of your future receivables. Repayment is automatic — a small percentage is deducted from your daily credit/debit card transactions. Best for: Businesses that want capital without making set monthly payments.
Business Term Loan
A traditional loan structure with a set amount, fixed interest rate, and regular monthly payments over a defined term (3–36 months). Best for: Businesses planning a major investment (equipment, expansion, renovation) who want predictable payments.
Line of Credit
Do you require immediate access to funds? You can get money when you need it with a business line of credit, and you don't have to pay interest on it until it's used. Best for: Businesses with variable cash flow needs who want on-demand access to capital without reapplying.
Equipment Financing
Do you need to buy or replace equipment? There are a variety of financing options available to help you pay for your equipment over time. The equipment itself serves as collateral in most cases, often allowing 100% financing with no down payment. Best for: Businesses that need specific equipment to operate or grow.
Invoice Factoring
Need money right away but don't have a strong credit history or assets to put up as collateral? In exchange for short-term funding, you can sell your accounts receivable at a discount — receive up to 90% of their value upfront. Not a loan, no debt added. Best for: B2B businesses that can't afford to wait 30–90 days for payment.
Revenue Based Financing (RBF)
Similar to an MCA but tied to monthly revenue rather than daily sales. Repayments flex up and down with your monthly income. Best for: Businesses with variable or seasonal revenue who want flexible repayment.
How to Qualify
Spartan Capital focuses primarily on your business revenue — not just your credit score. Here's what we look for across our main products:
| Product | Min. Revenue | Time in Business | Credit Score | Collateral |
|---|---|---|---|---|
| MCA | $10K/mo | 12+ months | 500+ | None |
| Term Loan | $15K/mo | 12+ months | 550+ | Case by case |
| Line of Credit | $10K/mo | 12+ months | 525+ | None |
| Equipment | $10K/mo | 12+ months | 575+ | Equipment only |
| Invoice Factoring | Any | Any | Not required | None |
| RBF | $10K/mo | 12+ months | 500+ | None |
MCA vs Term Loan: Which Is Right for You?
These are the two most popular products — and the choice between them depends on your cash flow situation, how you plan to use the capital, and your preference for payment flexibility.
| Feature | MCA | Term Loan |
|---|---|---|
| Repayment | % of daily sales | Fixed monthly |
| Payment flexibility | Flexible with revenue | Fixed regardless |
| Funding speed | Same day possible | 24–48 hours |
| Max amount | Up to $500K | Up to $2M |
| Best for | Cash flow needs | Planned investments |
Choose an MCA if you need fast capital for cash flow, have strong daily sales, and want your payments to flex with your revenue. Choose a Term Loan if you're making a major planned investment and want the predictability of a fixed monthly payment.
Understanding Your True Cost
The cost of business financing is often misunderstood. Here's a plain-English breakdown of what you'll actually pay.
Factor Rates (MCAs & RBF)
A factor rate is a multiplier applied to your advance amount. A factor rate of 1.25 on a $100,000 advance means you repay $125,000 total — a cost of $25,000. Factor rates typically range from 1.1 to 1.5 depending on your business profile.
APR (Term Loans)
Annual Percentage Rate represents the annualized cost of a term loan. A 24% APR on a $100,000 12-month loan means roughly $13,000 in total interest. APR is easier to compare across lenders.
How to Apply
Applying with Spartan Capital takes about 5 minutes. Here's exactly what to expect:
Step 1 — Fill Out the Application
Choose your product and fill out our online application. You'll need your basic business information, the funding amount you're looking for, and contact details. No hard credit pull at this stage.
Step 2 — Upload Bank Statements
We'll ask for 3–6 months of business bank statements. This is how we verify revenue and make an informed offer. You can upload them securely online or connect your bank directly.
Step 3 — Receive Your Offer
Your dedicated advisor reviews your application and returns an offer — typically within 1 hour during business hours. The offer shows your funding amount, terms, and total cost upfront.
Step 4 — Accept & Get Funded
Review your offer, ask any questions, and sign your agreement electronically. Funds are deposited directly into your business bank account — usually within 24 hours of signing.