Business loan types for brokers
For business loan brokers: Use this page to help clients evaluate Business Loan Types for Brokers, prepare the right information, and discuss fit with lenders.
There are several types of loans available to small businesses in Canada and the United States. With so many loan options, itβs important to know the clientβs business needs and align them with the most suitable loan type.
Business Term Loan
CEBA is closed. Balances are due December 31, 2026. See how brokers can help clients refinance
U.S. Small Business Administration (SBA) Loans
SBA loans, backed by the government, play a pivotal role in supporting SMBs
More resources
Understanding different types of business loans
Finding the right type of business loan can make the difference between stalling and scaling the client’s small business. Whether the client needs funding for equipment, working capital, or expansion, understanding the different types of business loans available helps the client make the best financing decision for the client’s company. At Levr.ai, we match the client’s business with the right lenders from our network of 50+ financing partners across Canada and the United States.
What types of business loans are available?
- Term loans for large, one-time purchases
- Lines of credit for ongoing expenses
- Equipment financing for machinery and tools
- Invoice and receivables financing for cash flow gaps
- Government-backed loans like SBA loans
- Alternative financing such as merchant cash advances
- Specialized loans for R&D, startups, and growth companies
Compare business loan types at a glance
| Financing Option | Typical Amount | Rate or Cost | Repayment | Funding Speed | Best For | Requirements |
|---|---|---|---|---|---|---|
| Business Term Loans | $25,000 to $500,000 | 6% to 30% APR | 1 to 5 years | 3 days to 2 weeks | Expansion, large purchases, established businesses | Good credit, 2+ years in business, solid revenue |
| Merchant Cash Advances | $5,000 to $500,000 | Factor rate 1.1 to 1.5 | 3 to 18 months | 1 to 3 days | Fast cash for card-based businesses | Card sales history, basic credit, bank account |
| Venture Debt Financing | $500,000 to $10M+ | 8% to 15% | 2 to 4 years | 2 to 6 weeks | VC-backed high-growth startups | Recent VC funding, strong growth metrics |
| Accounts Receivable Financing | $10,000 to $5,000,000 | 1% to 5% monthly fees | Paid when invoices settle | 1 to 3 days | B2B cash flow gaps | Outstanding B2B invoices, creditworthy customers |
| SR&ED Financing | $50,000 to $5,000,000 | 8% to 15% | From tax refund | 1 to 2 weeks | Canadian R&D funding | Eligible SR&ED claim, Canadian entity |
| Equipment Financing | $5,000 to $5,000,000 | 6% to 20% | 1 to 7 years | 2 to 5 days | Machinery, vehicles, equipment | Basic credit, operating business, asset collateral |
| Business Credit Cards | $5,000 to $100,000+ | 15% to 25% APR | Revolving | Same day | Everyday business spending | Good personal credit, personal guarantee |
| SBA Loans | $50,000 to $5,000,000 | 6% to 13% | 10 to 25 years | 30 to 90 days | Long-term affordable financing | US business, good credit, repayment capacity |
Business term loans
A business term loan provides a lump sum of capital that the client repays over a fixed period (typically 1-5 years) with regular monthly payments. Term loans can be secured or unsecured. Best for large one-time purchases, expansion, debt consolidation, and established businesses with strong credit. Learn about business term loans β
Merchant cash advances
A merchant cash advance (MCA) provides upfront capital in exchange for a percentage of the client’s future card sales, repaid through daily or weekly withdrawals. Best for businesses with high card-sales volume, retailers, restaurants, e-commerce, and emergency funding. Learn about merchant cash advances β
Venture debt financing
Venture debt is designed for venture-backed startups and high-growth companies, providing capital without diluting equity. Best for extending runway between equity rounds and financing growth. Explore venture debt options β
Accounts receivable financing
A/R financing lets the client borrow against outstanding invoices (typically 80-90% of value) to access immediate working capital. Best for B2B companies with net-30/60/90 terms and creditworthy customers. Get A/R financing β
SR&ED financing
SR&ED financing is a specialized loan for Canadian businesses doing qualified R&D, secured against expected SR&ED tax-credit refunds. Best for Canadian tech companies bridging cash flow while awaiting refunds. Learn about SR&ED financing β
Equipment financing
Equipment financing provides funds specifically for purchasing business equipment, machinery, vehicles, or technology, with the equipment serving as collateral. Best for construction, manufacturing, medical, and food-service equipment. Finance the client’s equipment β
Business credit cards
Business credit cards provide a revolving line of credit for ongoing expenses, with rewards and expense-management tools. Best for day-to-day spending, managing cash flow, and building business credit. Compare business credit cards β
SBA loans
SBA loans are government-backed loans offered through participating US lenders, among the most affordable and flexible financing available. Types include SBA 7(a), SBA 504, SBA Express, and SBA Microloans. Best for established small businesses, commercial real estate, and long-term financing. Apply for SBA loans β
Match the client’s needs to the right loan type
- Need funding in 24-48 hours? Merchant Cash Advance, A/R Financing, Business Credit Cards
- Want the lowest interest rates? SBA Loans, Bank Term Loans
- Buying equipment or machinery? Equipment Financing
- Need flexible revolving credit? Business Credit Cards, Line of Credit
- High-growth startup avoiding dilution? Venture Debt Financing
- Canadian tech company doing R&D? SR&ED Financing
- Outstanding invoices causing cash flow gaps? Accounts Receivable Financing
Frequently asked questions about business loan types
What are the most common types of business loans?
The most common are term loans, SBA loans, business lines of credit, equipment financing, and business credit cards.
What type of business loan is easiest to get?
Merchant cash advances and business credit cards are typically easiest to qualify for; equipment financing is also relatively easy since the equipment serves as collateral.
What type of business loan has the lowest interest rate?
SBA loans typically have the lowest rates (6-13% APR) due to government backing, followed by traditional bank term loans and equipment financing.
Can I get multiple types of business loans at once?
Yes. Many businesses use different loan types for different purposes, but each affects the client’s debt-to-income ratio and future borrowing capacity.
Find the right type of business loan with Levr
Levr.ai’s intelligent matching platform analyzes the client’s business profile and connects the client with the most suitable lenders from our network of 50+ financing partners across Canada and the United States. Organize a client deal in one workspace β
Not sure which product fits? Tell us about the client’s business and Levr compares the submitted deal information with available lender criteria for the broker to review, or see how the matching works first. The client can also browse the full lender directory.
More ways to fund a business
Beyond the core products above, Levr also works with lenders offering:
- Asset-based lending — borrow against receivables, inventory and equipment the client already own
- Revenue-based financing — repay as a share of monthly revenue rather than fixed instalments
- Purchase order and inventory financing — fund confirmed orders and stock before the client’s customer pays
- B2B net terms and vendor financing — offer customers terms while the client gets paid upfront
- Grant and tax credit financing — bridge the wait for SR&ED, IRAP, SDTC and digital media credits