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COVID-19 has taken a toll on us all, and as we prepare for 2022, many business owners are wondering how to navigate future variants and lockdowns. Due to the severe economic impact, you may wonder how to generate liquidity for your small business and stay strong through the pandemic. Fortunately, if you know your loan options, you have fantastic opportunities to borrow the money you need to drive your business forward. But, How do you navigate your financing needs in a recession? All you need is the knowledge to navigate your liquidity options and the resources to set you up with the appropriate loan provider. For insight and resources regarding small business lending, BitX Funding is your online marketplace and the solution to navigating liquidity issues through Covid-19.

This article will cover the most popular loan options for small business owners looking to generate liquidity during COVID-19. We will cover six incredible options for gaining access to short to midterm capital, listing the advantages and disadvantages of each.

Short-Term Loans

Short-term loans offer versatility and flexibility for small business owners. With this option, businesses borrow money according to the cash flow they plan to repay regularly with interest. Generally, short-term loans must be paid off within 3-15 months, ranging from 2.5k-500k.

As unsecured loans, short-term loans don’t require collateral and allow small business owners many options for using their added liquidity. However, being unsecured, these loans have higher interest, offer less money, and are more challenging to get from traditional banks. This option is excellent for small businesses looking to cover the hit from COVID-19.


  • Short-term loans are low risk for the borrower because they generally do not require collateral.
  • These loans offer flexibility in spending cash, such as purchasing equipment, managing cash flow, or paying off credit cards to improve credit.
  • An excellent option for immediate capital, especially during COVID-19
  • Easy to qualify and apply for, while the liquidity is quickly accessible.


  • Higher interest rates and a short time to repay the loan are the main trade-offs for the versatility of short-term loans.
  • Frequent repayment periods are the norm, with payments occurring weekly or daily.
  • Traditional banks will avoid offering these loans to business owners due to risk. However, alternative lenders such as BitX Funding are exceptional at finding suitable lenders for you.

Mid-Term Loans

Unlike short-term loans, midterm loans aren’t as flexible but allow repayment over 2-5 years. Mostly, these loans have a fixed interest rate with monthly payments, and the borrower must agree to the lender’s payback terms before receiving the loan. While the interest rate isn’t as high as short-term loans, depending on the length of the loan and the amount borrowed, rates could vary between 5-30%.

Midterm loans are best for businesses with good credit who have already established themselves and are ready to grow. The payback period and flexible interest rates allow small business owners looking to scale a unique opportunity to get the liquidity they need.


  • A flexible repayment period allows for consistent repayment, and borrowers can prepay the loan with no penalties.
  • Additionally, fixed interest rates throughout the repayment period offer even more consistency.
  • Midterm loans offer the chance to build credit while providing sufficient liquidity to grow your business.


  • Generally, businesses require at least two years in operation, a 650+ credit score, and 250k in annual revenue.
  • Like short-term loans, requesting midterm loans from banks may be challenging.
  • Less flexible than short-term loans while offering less money than long-term loans.

Line of Credit

Business lines of credit (LOC) offer the most flexibility in terms of liquidity. Rather than taking out a loan at a fixed rate, borrowers have a pool of capital to draw from and pay back as they require it. You can tap into the money anytime and only need to pay back what you borrowed at the agreed-upon rate. Because of the unforeseen toll COVID-19 has taken on businesses, access to LOCs makes it a desirable option for entrepreneurs.

Lines of Credit are the premium choice to access liquidity in the short term to cover business expenses, purchase equipment, or handle whatever needs financing for your business. However, LOCs offer higher interest rates, lower cash funds, and higher risk for the lender. Fortunately, alternative lenders like BitX Funding are excellent at finding you the best options for your business.


  • Extremely flexible, LOCs offer short-term liquidity for whatever your business needs.
  • Only borrow what you require, and you can get ahead of interest rates by paying off balances before they’re due.
  • Easier to qualify for than traditional loans.


  • LOCs offer higher interest rates and a lower cash reserve than other loans because of the risk to the lender.
  • Requires good credit score and annual revenue, or collateral, to qualify for LOCs.
  • It may require setup fees and ongoing paperwork to ensure your business is in good standing.

Personal Loans for Your Business

Similar to LOCs, personal loans are an exceptional option to cover short-term expenses and emergency liquidity requirements. The main difference is that these loans have a fixed withdrawal and payback plan. Because personal loans are unsecured and don’t require collateral, they are more challenging to qualify for and have higher interest rates than longer-term loans.

Despite this, as long as you qualify, you can receive the money within days and have the flexibility to use your liquidity on whatever your business needs.


  • You have flexibility in how you spend the money.
  • The money is accessible immediately with a good credit score.


  • These loans require a 700+ credit score and at least $50k in yearly personal income.
  • More risk to the lender means high-interest rates and difficulty in applying.


Equipment Financing

Equipment financing is a great way to add much-needed liquidity for businesses that use a lot of equipment and frequently upgrade and replace that equipment. These loans are specifically designed for significant equipment such as vehicles, printers, or restaurant ovens.

Equipment financing involves taking out a loan for the equipment in question and using the equipment as collateral for the loan. If, for example, you are approved for 75% of the equipment cost, you can buy the equipment for 25% value and pay off the amount borrowed with interest and principal.


  • Can be approved for loans up to 100% of equipment value with low-interest rates and be funded within 48hrs.
  • Can repay equipment financing for up to ten years or more.


  • Failure to pay on the loan will lead to repossession of said equipment.
  • These loans often require a minimum credit score and outstanding revenue for 2+ years.

Stacking 0% Business Credit Cards

Stacking business cards can be an excellent way to gain access to and move around liquidity, depending on your credit. Rather than acquiring a sizeable unsecured line of credit, you apply for multiple credit cards at 0% interest, then put your business expenses on those cards where you can pay them back without interest. You can even use this method to pay off loans with high interest ahead of time and build up your credit quickly.


  • You have flexibility in moving around your money to pay off multiple expenses.
  • This option allows savvy business owners to build credit and pay off larger loans without interest.


  • Requires good credit to gain the most benefit.
  • Credit card stacking can temporarily lower your credit score while multiple lines are open, and failure to pay them off can significantly drop your score.

BitX Funding is Your Resource for Liquidity Needs

With 2022 around the corner and possible COVID-19 variants threatening future lockdowns, it can be challenging to know the future. With the toll COVID-19 has taken on the economy, many small businesses wonder what they can do to generate liquidity. We know that it takes money to make money. However, gaining access to short-term capital at the best APR is becoming even more of a challenge, with traditional banks closing their doors to businesses in need.

Fortunately, BitX Funding is the alternative marketplace for your business needs. We offer resources, consultation, and the appropriate lenders to ensure you get the best value loans for whatever needs arise. Rather than lend money, we find the best lenders for your business and can get you set up with loans within 24 hours.

For more information on accessing liquidity for your business, contact BitX Funding by phone, email, or filling out the form below.


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