There are generally 6 types of funding for new businesses. We'll help you understand each option—and how a Paintbrush Loan compares—so you can decide which is best for you.
Find out what funding option could fit you best in under 2 minutes.
Equity investors take partial ownership of your company in exchange for capital (most common) or other resources such as education and networks. This is great for startups with a high growth plan but can be difficult to secure before some customer traction.
Paintbrush provides a commercial term loan for new businesses through our banking partner, Continental Bank, member FDIC. You maintain full ownership of your company, and the loan is guaranteed by the founder with income-driven repayment.
Loans for small businesses are available from banks, fintechs, and others. They come with a variety of terms, however they are typically only available to businesses with a few years of history and usually come with a personal guarantee.
Founders use their own resources (time and money), or customer revenue (hooray!) to get the business off the ground. This can be a tough path for founders without a lot of money or quick path to customer revenue.
Although typically a violation of a loan’s terms, some founders will take out a personal loan to cover startup expenses. Rates and terms vary, however these loans are typically not suited for startup growth.