Unsecured business lines of credit is a flexible financing option that allows a business to borrow up to a pre-set limit, similar to a credit card. You only pay interest on the amount you draw, not the entire credit line, and once repaid, the funds become available again for future use. It’s ideal for managing cash flow, covering short-term expenses like payroll or inventory, or handling unexpected costs.
A payroll business advance typically refers to a financial product where a business receives an advance on its future revenue or receivables to cover payroll expenses. This is distinct from payroll advances given to employees, as it focuses on providing working capital to the business itself to ensure timely payment of employee wages and related costs. These advances are often offered by alternative lenders, fintech platforms, or payroll service providers to help businesses manage cash flow gaps, especially for small- and medium-sized enterprises (SMEs)
Revenue-Based Financing (RBF) is a type of funding where investors give a business capital in exchange for a percentage of the company’s ongoing gross revenues until a pre-agreed total repayment cap is reached. It’s a hybrid between debt and equity — you don’t give up ownership, but it’s not a traditional loan either.
