How funding works
Understand the difference between working capital, revenue-based funding, short-term funding, equipment financing, and lines of credit.
Funding Guides
Business funding guides for owners who want to understand their options.
Start here to learn how business funding actually works before you apply — the funding types, what providers review, and how to match a structure to your needs.
Quick answer
These guides explain how business funding works, the main funding types, common requirements, and how to choose an option that fits your revenue and timing.
No obligation to accept an offer. MerchantRunway is operated by MerchantRunway.com. MerchantRunway is not a direct lender. We may connect applicants with third-party funding providers. Approval, terms, rates, and funding amounts are not guaranteed.
What providers review
Revenue, time in business, deposits, credit, existing obligations, and your use of funds all factor into a decision.
Choosing an option
Match repayment cadence and total cost to your cash-flow pattern rather than chasing the fastest or largest offer.
Documents usually needed
- Recent business bank statements
- Business identification and owner contact details
- Requested amount, intended use, and timing
- Existing funding obligations, if any
How approval is evaluated
Providers may review revenue consistency, deposits, time in business, industry, existing obligations, owner profile, and whether the requested capital fits cash-flow capacity.
View requirementsRelated funding options
Common questions
It depends on revenue, timing, and use of funds. Working capital suits broad needs, equipment financing suits asset purchases, and revenue-based funding follows cash flow.
Related resources
Related guides
Related industry content
Related funding types
Ready to explore your funding options?
Get a clearer understanding of what providers may look for, what documents may be needed, and which funding options may fit your business.
No obligation to accept
Secure intake
No sensitive info upfront
Clear document checklist
Terms vary by provider