CompareFunding options
How Same-Day Funding Compares to Your Other Options
Speed, paperwork and cost, side by side, so you can pick what fits.
Velo is a broker, not a lender or funder.
Side-by-Side Comparison
What it isA funder's purchase of future receivablesLoan from a bankBank loan with an SBA guaranteeRevolving loanLoan or lease secured by equipmentSale of B2B invoices
Typical time to fundsAs soon as same day once approved; timing variesWeeksWeeks to monthsDays to weeksDays to weeksDays
PaperworkLight: recent bank statements and IDHeavy: financial statements, tax returnsHeaviestModerateModerate, plus a vendor quoteInvoices and customer list
How it's paid backScheduled remittances based on a share of receivablesFixed monthly paymentsFixed monthly paymentsPayments on what you drawFixed paymentsCustomer pays the factor
Cost structureFixed cost set at signing; not interestInterest (APR)Interest (APR)Interest on the drawn balanceInterest or lease chargesFactoring fees
Typical total costHigherLowerLowestVariesVariesVaries
Best forSpeed, uneven revenueEstablished businesses, planned spendLong-term investment at the lowest costOngoing flexibilityBuying equipmentB2B businesses with slow-paying customers
General comparison for illustration. Actual cost, speed and requirements depend on the provider and your business.
Lines of credit, term loans, equipment financing, SBA loans and home equity lines of credit are made by third-party lenders, subject to their credit approval and terms. Velo is not the lender and may receive compensation from the lender. APRs, fees and terms vary by lender and are disclosed by the lender before you sign.