Every small business is unique, as are the funds available to it—so how do you choose the right credit option to set your business up for success? First, you have to understand what each offer means and how it can be used. Read about five popular types of business credit below, or watch this quick video. SBA Loan First is the SBA Loan (Small Business Association loan). SBA loans are guaranteed by the SBA, and they often come with lower interest rates and longer repayment terms. The eligibility requirements are a bit more stringent than the other loans discussed in the video above. MCA Loan Next is an MCA (merchant cash advance). This product provides rapid financing without requiring a strong business credit history. In exchange for a portion of your business's future credit card sales, the lender gives you a lump-sum deposit. You pay back the purchased amount with daily, weekly, or bi-monthly payments taken out of your total credit card sales. Term Loan Another option is a term loan. You receive a set amount of funds with a fixed interest rate from a lender that you pay back over a designated period of time. Invoice Factoring Then there is invoice factoring. Invoice factoring allows you to sell outstanding invoices to a factoring company, which then gives you a cash advance for the total amount. The factoring company then collects on the invoice, plus fees. Line of Credit Lastly, there is a business line of credit. Similar to a personal credit card, once you are approved, you have access to the amount you qualified for on a rolling basis. Once you know what type of credit is right for you, start preparing by reading these four things you should know before applying for a small business loan.