Growing a small business can be both exciting and challenging, especially when it comes to finding the right source of working capital. So let's break down these six alternative funding sources and what you can expect from each.

Invoice Factoring

• Qualification Requirements: Generally, you'll need a history of receivables and a creditworthy customer base.
• Ease of Qualification: Pretty straightforward if you have consistent sales.
• Funding Amounts: Varies, but usually up to the value of the invoice.
• Terms: Short-term, usually 30-90 days.
• Costs: Fees can range from 1% to 5% of the invoice amount.
• Reliability: Fairly reliable but dependent on your clients paying their invoices.
• Flexibility: Good for cyclical businesses.
• Speed of Funding: Fast, often within a day or two.
  

Merchant Cash Advance (MCA)

• Qualification Requirements: You need to have a solid stream of credit card sales.
• Ease of Qualification: Easier than a traditional loan.
• Funding Amounts: Based on your daily sales, so it varies.
• Terms: Short-term, often less than a year.
• Costs: Higher fees and interest rates.
• Reliability: Reliable but expensive.
• Flexibility: Limited; payments are based on daily sales.
• Speed of Funding: Very fast, sometimes within 24 hours.

Online Loan

• Qualification Requirements: Good credit score, proof of revenue.
• Ease of Qualification: Easier than bank loans but stricter than MCAs.
• Funding Amounts: Usually up to $500,000.
• Terms: Short to medium-term.
• Costs: Moderate interest rates.
• Reliability: Reliable if you go with well-known lenders.
• Flexibility: Fixed payments usually.
• Speed of Funding: Quick, often within a week.

Crowdfunding

• Qualification Requirements: Compelling business idea or product.
• Ease of Qualification: Depends on your campaign's appeal.
• Funding Amounts: Varies widely.
• Terms: No repayment unless it’s equity-based.
• Costs: Platform fees.
• Reliability: Risky; depends on campaign success.
• Flexibility: Highly flexible but time-consuming.
• Speed of Funding: Slow; dependent on campaign length.

Microloan

• Qualification Requirements: Business plan, decent credit score.
• Ease of Qualification: Moderate; often aimed at disadvantaged communities.
• Funding Amounts: Up to $50,000.
• Terms: Short to medium-term.
• Costs: Lower interest rates.
• Reliability: Reliable.
• Flexibility: Usually fixed payments.
• Speed of Funding: Can be slow, varies by lender.

Angel Investor

• Qualification Requirements: Strong business plan, growth potential.
• Ease of Qualification: Tough; you need to impress.
• Funding Amounts: Varies, often higher.
• Terms: Usually equity-based.
• Costs: Giving up some ownership.
• Reliability: Reliable if you find the right fit.
• Flexibility: High; terms are negotiable.
• Speed of Funding: Can be slow; depends on negotiations.

So there you go, you've got options. Each has its pros and cons, so your best bet is to match the right funding source to your specific business needs. Good luck!