Fundladder: every way a US business can raise money

L0 · Borrowing · rung 1 of 5

Free or nearly free

Little or no cash cost, though most take time and admin. Some bring money in, and a few have small fees. The routes below are grouped by type, not ranked.

Routes: 13
Speed: Days to 6 months or more
Personal guarantee likely: 0 of 13
Secured on assets or invoices: 1 of 13

Own cash and no-cost3

Customer prepayments, deposits and pre-orders
Speed: Days
Upside
Costs nothing and gives up no ownership
Downside
Some customers will not pay up front, or will want a discount for it
Late fees and Prompt Payment Act interest
Speed: DaysNot a raise
You collect money you are already owed, sooner. No new money comes in.
Upside
Costs nothing, and federal interest is paid without being asked for
Downside
Brings in only what you are owed, not new money
Supplier trade credit
Speed: Weeks
Upside
Usually costs nothing if you pay within the terms
Downside
New businesses may have to pay upfront at first

Grants, tax credits and prizes7

Business tax breaks (section 179, bonus depreciation and credits)
Speed: 6 months or more
Upside
No application, interest or repayment; you claim it on your return
Downside
Helps only if you owe tax
Prize competitions and accelerators
Speed: 6 months or more
Upside
Prizes are money you do not repay, and take no ownership
Downside
Competitive, with uncertain results
Research and development tax credit
Speed: Months
Upside
No repayment and no ownership given up
Downside
Paid after you spend, at tax time or in later payroll quarters, not upfront
SBIR and STTR research awards
Speed: Months
Upside
Nothing to repay and no ownership given up
Downside
Only for research that matches an agency's published topic
State and local grants
Speed: 6 months or more
Upside
Money you do not repay if you meet the terms
Downside
Rare and competitive, with set application windows
State export grants (STEP)
Speed: Months
Upside
Money you do not repay for the costs of finding foreign customers
Downside
Pays only for export marketing and market entry, not for making or shipping goods
USDA grants for rural businesses and farmers
Speed: 6 months or more
Upside
Money you do not repay
Downside
Neither program was taking new grant applications on October 20, 2026

Supplier and buyer-led finance1

Federal contract financing
Speed: Weeks
Upside
No interest and no separate fee
Downside
Only for federal contracts, and only when the contract includes it

Crowdfunding and community finance2

Donation crowdfunding
Speed: Weeks
Upside
Nothing to repay and no shares given up
Downside
People rarely give to a business run for profit
Rewards crowdfunding
Speed: Months
Upside
No repayment, no interest and no shares given up
Downside
Needs an audience and a lot of promotion to succeed

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

L1 · Borrowing · rung 2 of 5

Very cheap or subsidised

Borrowing on better terms than the market, usually because a public body, community lender or large buyer is involved. The routes below are grouped by type, not ranked.

Routes: 11
Speed: Days to 6 months or more
Personal guarantee likely: 5 of 11
Secured on assets or invoices: 9 of 11

Own cash and no-cost1

IRS payment plans
Speed: DaysNot a raise
You pay a tax bill you owe over time. No new money comes in.
Upside
Spreads a tax bill you cannot pay at once
Downside
Not new money; it only delays a payment you owe

Government-backed and community lending8

Community development lenders (CDFIs)
Speed: WeeksPersonal guarantee likely
Upside
Set up to lend to businesses and people that banks often turn down
Downside
Only serves its own target market, so not every business qualifies with every CDFI
Industrial revenue bonds (small issue bonds)
Speed: 6 months or morePersonal guarantee likely
Upside
A tax-exempt rate, which can be lower than a bank loan
Downside
Only for manufacturing facilities, up to $10 million
New Markets Tax Credit financing
Speed: 6 months or more
Upside
Lower rates, longer terms and more flexible features than the market usually offers
Downside
Only for businesses and projects in low-income communities
Program-related investments and impact funds
Speed: Months
Upside
Often below market rates, with patient and flexible terms
Downside
Only for work that matches a funder's charitable mission
SBA 504 loans
Speed: MonthsPersonal guarantee likely
Upside
Long fixed-rate terms for property and equipment
Downside
Only for fixed assets, not working capital or inventory
SBA disaster loans
Speed: Weeks
Upside
Low fixed rates, capped by the SBA
Downside
Only after a declared disaster, and only in the declared area
SBA Microloans
Speed: WeeksPersonal guarantee likely
Upside
Made for small amounts: the average microloan is about $13,000
Downside
At most $50,000, and generally no more than $10,000
USDA farm loans (Farm Service Agency)
Speed: Months
Upside
Direct loans have fixed rates set by FSA (5.375% to 6.25% in October 2026), and down payment loans are 2.25%
Downside
Only for family farms run by their owners, not for other rural businesses

Supplier and buyer-led finance2

Seller financing (when buying a business)
Speed: MonthsPersonal guarantee likely
Upside
Covers part of the price without a second bank loan
Downside
Not every seller can or will wait to be paid
Supply chain finance (supplier finance programs)
Speed: Days
Upside
Get paid before the due date, only for the invoices you choose
Downside
Only available if your customer runs a program and offers it to you

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

L2 · Borrowing · rung 3 of 5

Mainstream secured debt

Standard borrowing from banks, credit unions and mainstream lenders, often secured on assets or backed by a personal guarantee. The routes below are grouped by type, not ranked.

Routes: 15
Speed: Days to months
Personal guarantee likely: 8 of 15
Secured on assets or invoices: 12 of 15

Own cash and no-cost1

Retirement savings in your business (ROBS)
Speed: Weeks
Upside
No loan to repay and no interest
Downside
Puts your retirement savings at risk in a single new business

Government-backed and community lending7

EXIM working capital guarantees and export credit insurance
Speed: Weeks
Upside
Lets you borrow more against the same export inventory and receivables
Downside
Unless Congress extends EXIM's charter, it can take on no new guarantees or policies after December 31, 2026
SBA 7(a) loans
Speed: MonthsPersonal guarantee likely
Upside
Long terms, up to 25 years for real estate, keep monthly payments lower
Downside
Every owner of 20% or more must guarantee the whole loan personally
SBA export loans
Speed: WeeksPersonal guarantee likely
Upside
A 90% guarantee makes lenders more willing to finance export orders and foreign receivables
Downside
Only for exporting (or, for International Trade loans, competing with imports)
SBA Express loans
Speed: WeeksPersonal guarantee likely
Upside
Less SBA paperwork than a standard 7(a) loan; the lender uses its own forms and decides without SBA review
Downside
Up to $500,000 only
SBA lines of credit (CAPLines and others)
Speed: MonthsPersonal guarantee likely
Upside
The SBA caps the interest rate and the guaranty fee
Downside
Owners of 20% or more usually guarantee the line personally
State small business capital programs (SSBCI)
Speed: MonthsPersonal guarantee likely
Upside
Can turn a lender's no into a yes when your collateral or credit history falls short
Downside
What is available differs by state, and some programs may close as their money runs out
USDA Business and Industry loan guarantees
Speed: Months
Upside
Terms of up to 40 years keep payments low on buildings and long-life equipment
Downside
Only for projects in rural areas

Bank and mainstream debt7

Bank and credit union term loans
Speed: WeeksPersonal guarantee likely
Upside
Usually cheaper than online lenders or sales-based finance
Downside
Harder to get for new businesses, or without collateral
Business credit cards
Speed: DaysPersonal guarantee likely
Upside
Quick to get and simple to use for small, regular costs
Downside
Expensive if you carry a balance
Business line of credit
Speed: WeeksPersonal guarantee likely
Upside
Borrow only what you need, when you need it
Downside
Rates vary widely and can be high for newer or riskier businesses
Commercial real estate loans
Speed: Months
Upside
Long repayment schedules keep each payment lower
Downside
You need a deposit, and pay for the appraisal, environmental report and legal work
Equipment leasing and sale-leaseback
Speed: Weeks
Upside
Up to 100% of the equipment's cost, so little cash up front
Downside
You may pay more in total than buying, and own nothing at the end of a fair market value lease
Equipment loans and finance agreements
Speed: Weeks
Upside
The equipment usually secures the deal, so you may not need other collateral
Downside
Only for equipment, not wages, rent or stock
Personal borrowing for the business
Speed: Weeks
Upside
The lender looks at your own credit and home equity, not the business's track record
Downside
The debt is yours, whatever happens to the business

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

L3 · Borrowing · rung 4 of 5

Specialist secured debt

Borrowing secured on specific assets such as invoices or inventory, with more fees and conditions than mainstream debt. The routes below are grouped by type, not ranked.

Routes: 10
Speed: Days to months
Personal guarantee likely: 1 of 10
Secured on assets or invoices: 9 of 10

Bank and mainstream debt1

Venture debt
Speed: Weeks
Upside
Gives you more runway with less dilution than raising the same amount in shares
Downside
The lender takes a lien on all your assets, often including a block on pledging your intellectual property

Asset-based and specialist lending8

Accounts receivable financing
Speed: Weeks
Upside
Customers usually keep paying you, so they need not know you borrow against their invoices
Downside
You still chase your own late payers; the lender does not take that on
Asset-based lending
Speed: Weeks
Upside
The amount you can borrow grows with your sales and stock
Downside
Often more expensive than other commercial loans
Inventory and floor plan financing
Speed: Weeks
Upside
Pays for stock you could not otherwise afford to hold
Downside
Inventory loans lend much less than the stock's value
Invoice factoring
Speed: Days
Upside
Turns unpaid invoices into cash before your customers pay
Downside
Your customers usually pay the factor, so they know you use one
Private credit and mezzanine debt
Speed: Months
Upside
Larger and more flexible loans than a bank may offer, with terms negotiated directly with the lender
Downside
Costs more than bank debt
Purchase order and contract financing
Speed: WeeksPersonal guarantee likely
Upside
Lets you take an order larger than your cash would allow
Downside
Pays only the costs of a specific order, never your profit or general expenses
Spot factoring (single invoices)
Speed: Days
Upside
You choose which invoices to sell and when, with no ongoing agreement
Downside
Each deal is priced on its own, so check the cost of every one
Trade finance and letters of credit
Speed: Weeks
Upside
Lets you trade with new or distant partners without trusting them to pay or ship first
Downside
Fees on every step, and LCs are relatively expensive in transaction costs

Public and quasi-public markets1

Corporate bonds and private placements of debt
Speed: Months
Upside
Large sums for long terms without giving up shares
Downside
Suits only established, larger companies with audited financial statements

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

L4 · Borrowing · rung 5 of 5

Expensive or fast

Quick to arrange, often unsecured, and usually the most expensive way to borrow. The routes below are grouped by type, not ranked.

Routes: 5
Speed: Days to weeks
Personal guarantee likely: 3 of 5
Secured on assets or invoices: 1 of 5

Alternative and fast debt5

Bridge and hard money loans
Speed: Weeks
Upside
Can be quick, because hard money lenders look mainly at the property
Downside
Hard money is expensive, with high interest and upfront fees
E-commerce and payment platform finance
Speed: Days
Upside
Quick, with an offer based on sales data the platform already has
Downside
Only from a platform you already sell through or take payments with
Merchant cash advance
Speed: DaysPersonal guarantee likely
Upside
Fast to arrange
Downside
Usually much more expensive than bank, SBA or community lending
Online business loans
Speed: DaysPersonal guarantee likely
Upside
Fast decisions and funding, often within days
Downside
Usually much more expensive than bank, SBA or community loans
Revenue-based finance
Speed: DaysPersonal guarantee likely
Upside
Payments fall when revenue falls
Downside
Expensive, especially when repaid quickly

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

E1 · Equity · rung 1 of 3

Light dilution

You sell a small share of the company, usually to many small investors or people you know, and keep control of how it is run. The routes below are grouped by type, not ranked.

Routes: 6
Speed: Weeks to months
You give up: A small share of the business

Crowdfunding and community finance3

Co-op member shares and community offerings
Speed: Months
Upside
Members who invest are also customers or workers, with a reason to support the business
Downside
Raises only what members can afford
Intrastate offerings and state crowdfunding
Speed: Months
Upside
Lets customers, neighbors and local supporters invest, not only wealthy investors
Downside
Only residents of your state can buy, and investors can resell only in-state for six months
Regulation Crowdfunding
Speed: Months
Upside
Raise money from your customers and community, not only from wealthy investors
Downside
Your finances, owners and plans become public on EDGAR

Private equity investment1

Friends and family
Speed: Weeks
Upside
Often quick and on flexible terms
Downside
Small amounts compared with angels or venture capital

Hybrid instruments2

Convertible notes
Speed: Weeks
Upside
Puts off agreeing a valuation until a priced round
Downside
It is debt, with interest and a maturity date
SAFEs (simple agreements for future equity)
Speed: Weeks
Upside
Quick and cheap to agree, often on a standard form
Downside
Ownership given up is not fixed until conversion, and several SAFEs add up

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

E2 · Equity · rung 2 of 3

Significant dilution and investor rights

Investors take a meaningful stake and usually get rights such as a board seat, a veto over big decisions, or a preferred return. The routes below are grouped by type, not ranked.

Routes: 8
Speed: Months to 6 months or more
You give up: A significant share, plus investor rights

Private equity investment5

Angel investors
Speed: Months
Upside
No repayments, and investors share the risk
Downside
You give up a share of the company and some control over decisions
Corporate venture capital
Speed: 6 months or more
Upside
Money plus the corporate's customers, distribution, know-how and reputation
Downside
Only if your business fits the investor's strategy
Family offices
Speed: 6 months or more
Upside
Patient money, with no fund deadline to sell
Downside
Hard to find, since family offices do not advertise and most deals start with an introduction
Opportunity Zone investment
Speed: 6 months or more
Upside
Investors have a tax reason to put money into businesses in low-income areas
Downside
The business must keep meeting the zone tests for years, or the fund loses its benefit
Venture capital
Speed: 6 months or more
Upside
Large sums to grow quickly, with no repayments
Downside
Only suits companies that could grow very large

Public and quasi-public markets1

Private share sales and tender offers
Speed: MonthsNot a raise
Existing shareholders sell shares. The company gets no new money.
Upside
Founders, employees and early investors can turn some shares into cash before a sale or listing
Downside
Raises no money for the company

Tokens and digital assets2

Token offerings
Speed: Months
Upside
Can reach buyers who want to use or hold the network's token
Downside
Most token sales to raise money are still securities offerings, with their limits and filings
Tokenized securities
Speed: 6 months or more
Upside
Blockchain records can make transfers and record-keeping faster
Downside
No lighter rules, because the securities laws apply in full

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Information, not advice. Ordered by cost, never by who pays. Disclaimer

E3 · Equity · rung 3 of 3

Major dilution, loss of control or public obligations

Investors take control, or the company becomes publicly traded and takes on ongoing public rules, costs and scrutiny. The routes below are grouped by type, not ranked.

Routes: 6
Speed: Months to 6 months or more
You give up: Control, or the duties of a public company

Private equity investment3

Employee stock ownership plan (ESOP)
Speed: 6 months or moreNot a raise
Owners sell shares to a retirement plan for staff. No new money comes in.
Upside
Owners can sell without finding an outside buyer, and the business stays independent
Downside
Does not raise money for the business. The company's cash goes to paying for the shares
Management buyout
Speed: 6 months or morePersonal guarantee likely
Upside
Owners can sell to people who already know the business, its customers and its staff
Downside
The business carries the debt that paid for it, which leaves less room to invest
Private equity
Speed: 6 months or more
Upside
Large sums, and owners can sell some or all of their shares
Downside
You usually give up control, and often a board majority

Public and quasi-public markets3

Over-the-counter (OTC) quotation
Speed: Months
Upside
A way for investors to trade the company's shares without an exchange listing
Downside
Raises no money by itself
Regulation A offerings
Speed: 6 months or more
Upside
Raise up to $75 million from the general public, not only from accredited investors
Downside
Nothing can be sold until the SEC qualifies the offering, after its staff review
Stock exchange listing (IPO, direct listing or SPAC)
Speed: 6 months or more
Upside
Access to large amounts of capital, now and later
Downside
High transaction costs and a long, demanding process

See E3 on the list of all routes Compare routes

Information, not advice. Ordered by cost, never by who pays. Disclaimer

Every way a US business can raise money, cheapest first

The funding ladder

Watch · latest briefing

Own cash and no-cost3

Grants, tax credits and prizes7

Supplier and buyer-led finance1

Crowdfunding and community finance2

Own cash and no-cost1

Government-backed and community lending8

Supplier and buyer-led finance2

Own cash and no-cost1

Government-backed and community lending7

Bank and mainstream debt7

Bank and mainstream debt1

Asset-based and specialist lending8

Public and quasi-public markets1

Alternative and fast debt5

Crowdfunding and community finance3

Private equity investment1

Hybrid instruments2

Private equity investment5

Public and quasi-public markets1

Tokens and digital assets2

Private equity investment3

Public and quasi-public markets3