What's the best small business funding for your industry?

Short answer

The best funding for your industry depends on how your customers pay. Businesses that invoice other companies, like staffing, trucking, construction and manufacturing, often use invoice factoring or payroll funding. Businesses paid at the register, like restaurants and online stores, usually look at lines of credit, term loans or SBA loans instead.

Industries at a glance

Industry	The usual cash gap	Options that often fit	Start here
Staffing agencies	Weekly payroll, clients pay in 30 to 90 days	Invoice factoring, payroll funding, AR line of credit	Staffing factoring
Nurse and healthcare staffing	Facilities pay in 60 to 90 days	Nurse staffing factoring, payroll funding	Nurse staffing factoring
Trucking	Fuel and drivers now, customers pay in 30 to 60 days	Freight factoring, equipment financing, line of credit	Factoring for trucking companies
Construction	Pay apps paid in 30 to 90 days, plus retainage	Factoring on approved billings, line of credit, term loan	Factoring for construction companies
Manufacturing	Materials and labor long before customers pay	Invoice factoring, equipment financing, SBA loans	Manufacturing factoring
Wholesale and distribution	Inventory bought upfront, retailers pay on terms	Invoice factoring, line of credit	Wholesale distribution factoring
Security guard companies	Weekly guard payroll, contract clients pay monthly	Invoice factoring, payroll funding	Factoring for security guard companies
Commercial cleaning and janitorial	Crew payroll before contract payments	Invoice factoring, payroll funding	Factoring for janitorial companies
Government contractors	Agencies pay on their own schedule	Factoring with proper assignment, line of credit	Factoring for government contractors
Restaurants	Seasonal swings, equipment, buildouts	Line of credit, equipment financing, SBA loans	Funding for restaurants
Medical practices	Insurance reimbursements lag	Line of credit, term loan, SBA loans	Funding for medical practices
Online stores	Inventory before sales	Line of credit, term loan, inventory financing	Funding for ecommerce businesses

Three rules that hold in every industry

If your customers are businesses that pay late, look at factoring first. It ties cash to invoices and leans on your customers' credit. See invoice factoring vs a line of credit.
If you need money for something that lasts years, use longer money. Equipment, buildings and acquisitions fit term loans and SBA loans. See term loans for small business.
Be careful with daily-payment products in any industry. Merchant cash advances are fast but usually the most expensive option. See MCA alternatives.

Where Break Bread Lending fits

Break Bread Lending works with staffing and nurse staffing agencies, trucking, construction, manufacturing, distribution and service businesses across the United States. We compare factoring, payroll funding, lines of credit, SBA loans, term loans and MCA consolidation for your situation, and we'll tell you which one fits or that you should wait.

See my options (about 2 minutes, and checking your options doesn't pull your credit)

Frequently asked questions

What's the best funding for a staffing agency?

Most staffing agencies use invoice factoring or payroll funding because payroll is weekly and clients pay in 30 to 90 days. Established agencies with strong financials may add an accounts receivable line of credit.

What's the best funding for a trucking company?

Freight factoring is the most common because it turns delivered loads into cash within days. Equipment financing covers trucks and trailers, and a line of credit can cover repairs and other gaps.

What's the best funding for a construction company?

It depends on the gap. Factoring can work on approved progress billings, a line of credit fits materials and mobilization, and a term loan fits equipment or a yard. Retainage and pay-when-paid clauses affect which works.

What's the best funding for a restaurant?

Restaurants usually look at a business line of credit, equipment financing or an SBA loan. Invoice factoring rarely fits because most restaurant customers pay at the time of sale.

Which industries can't use invoice factoring?

Businesses that sell mostly to consumers and get paid at the time of sale, like restaurants and retail stores, usually can't, because there are no business invoices to factor.

Does my industry change how lenders see my application?

Yes. Some lenders limit or avoid certain industries, and others specialize in them. Your industry also affects which products fit, so start with how your customers pay you.

Disclosure

Funding is subject to eligibility, underwriting and approval, and approval isn't guaranteed. Amounts, rates, fees, terms and timing vary by product and industry. Many options require a personal guarantee, and a formal application may include a hard credit inquiry. Break Bread Lending isn't a bank. This page is general education, not financial or legal advice.