What is the cheapest way for a business to borrow money?

For businesses that qualify, an SBA loan or a conventional bank term loan is almost always the lowest-cost option. Faster products like merchant cash advances and invoice factoring cost more, which is the tradeoff for speed and easier qualification.

What is the fastest business financing to get?

Merchant cash advances and invoice factoring are typically the fastest, often funding within days or even 24 to 48 hours. Commercial real estate and SBA loans take weeks because of property appraisal and underwriting requirements.

Compare Business Financing: MCA vs Factoring vs CRE Loans

Business financing options, side by side

The right financing product depends on three things: how fast you need the money, how much it costs, and what you can qualify for. Bank and SBA loans are cheapest but slowest and hardest to qualify for. Merchant cash advances and factoring are fast and accessible but cost more. The table below lays out the tradeoffs directly.

Product	Speed to funding	How cost is set	What you need to qualify	Best for
Merchant Cash Advance	Days	Factor rate, typically 1.1–1.5	Strong daily sales; credit and collateral matter less	Fast capital when a bank loan is out of reach
Invoice Factoring	24–48 hours after setup	1–5% fee per 30 days (~2.5% avg)	B2B invoices; customers' credit matters most	Bridging slow net-30 to net-90 receivables
Commercial Real Estate Loan	Weeks	Interest rate; priced on DSCR and LTV	Qualifying property; DSCR ~1.20–1.35x	Planned property purchase or refinance
SBA Loan	Weeks to months	Interest rate; partially government-guaranteed	Established business meeting SBA criteria	Lowest-cost option for those who qualify
Business Line of Credit	Days to weeks	Interest on the drawn balance only	Revenue history; varies by lender	Recurring or unpredictable short-term needs

Figures are dated industry references verified 2026-05-22. SBA and line-of-credit guides are in progress; see each published guide for full sourcing.

How to read this

There is no single best financing product — only the best fit for a specific situation. A business that can wait and qualifies for an SBA loan should almost always take it over a faster, costlier option. A business that needs capital this week, or cannot meet bank criteria, is choosing among the faster products on their own merits. Start from your real constraints, not from whichever product you heard of first.