Why a home equity line of credit is better than a small business loan

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Figure’s HELOC vs. The Average Small Business Loan

Choosing a HELOC over a small business loan could streamline your path to financing, especially in the early stages of your business. Compare our HELOC and the average small business loan side-by-side to help you make an informed decision about tapping into your home's equity.

Figure HELOC

Average Small Business Loan*

Approval TimelineFastSlow
Use of FundsFlexible, can be used for any business needMay have restrictions based on the type of business expense
Loan QualificationHomeowners can qualify easily. The loan is secured by home equity1navigates to numbered disclaimerStringent lender-specific requirements like solid operating history, minimum net worth, and more
Redraw OptionAllows redrawing on the credit line as the balance is repaidTypically does not allow redraws
Prepayment PenaltyNeverPossible, varies by lender
Fund DisbursementFunding in as few as 5 days5navigates to numbered disclaimerCould be weeks
Application100% Online, see your rate instantlyVaries by lender. May require in-person processes

Learn why Figure’s HELOC could be the better choice:

  • Faster and easier

    With Figure, you could get approved in as little as 5 minutes with funding in as few as 5 days, all with a 100% online application. Small business loans often require more documentation and can take longer to process. No need to jump through hoops or waste time with lengthy in-person appointments.

  • Trusted with billions

    At Figure, we've helped thousands of people achieve their financial goals through our innovative and convenient lending solutions. Over $9 billion in HELOCs has been funded using Figure’s platform, making us a trusted and experienced lender in the industry. Our innovative technology and customer-centric approach make us the best choice for your financing needs.

  • Unrestricted Fund Usage

    A HELOC provides the flexibility to use your funds as you see fit, without stringent restrictions. This makes it easier to manage cash flow and adapt to the financial demands of your business.

  • Redraw Options to Empower Your Business

    Figure’s HELOC allows you to re-borrow funds as you pay down the principal balance, maintaining a continuous flow of capital. Unlike the average small business loan, which typically lacks a redraw feature, our HELOC keeps your financial options wide open.

Enormously helpful throughout the process

I recently took a loan through Figure. They were enormously helpful throughout the process. Being a senior citizen businessman I appreciated their making my time count. I plan on using them again if possible to fund my future business needs.

Written by customerJoe M.

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Figure’s HELOC is faster than the average small business loan

If you're a homeowner with equity in your home, a HELOC from Figure may be the perfect solution for your business needs.