Tallglen Commercial Capital, a small-business funding service in Greenwood, South Carolina, compares six funding types on one page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances, by repayment, security and cost, with the questions to settle before choosing.
What Are the Four Types of Business Loans? The Short Answer for Greenwood County, SC
Lists of loan types vary, but four shapes cover the ground: a term loan (one sum, repaid in installments), a line of credit (a limit you draw on and repay), equipment financing (a loan or lease secured by the machine), and short-term working capital (a smaller sum over a shorter schedule). Inventory financing is a cousin of the line of credit, secured by stock. A merchant cash advance sits outside the list because it is not a loan at all: it is a purchase of future receipts.
| Funding type | How it is repaid | What may secure it | Fits expenses like |
|---|---|---|---|
| Working capital | Even payments, months not years | A lien on business assets or a personal guarantee, as the partner sets | Payroll, supplier invoices, rent while sales turn into deposits |
| Term loan | Equal payments of principal plus interest | Business assets, sometimes property or a guarantee | Buying a business, a remodel, a second storefront |
| Line of credit | Pay back draws and the limit frees up again | Receivables or a lien on all business assets, partner's choice | Gaps that come back during the year |
| Inventory financing | Cleared as shelves empty, or by a calendar | The inventory | Shelf stock, fuel-store goods, parts |
| Equipment financing | Loan installments or monthly lease rent | The equipment | Coolers, fryers, lifts, work trucks |
| Merchant cash advance | The provider collects a cut of card or bank receipts; not a loan | Receipts not yet earned, sold to the provider | A brief need tied to card volume |
Secured vs Unsecured Business Loan for Greenwood, SC Owners
A secured loan names collateral: the equipment bought, the inventory, receivables, real estate, or a blanket lien on business assets. An unsecured loan names no single asset, though the partner may still ask for a personal guarantee, which puts the owner's own assets behind the debt. Collateral gives the partner something to recover, and gives the owner something to lose if payments stop.
Before choosing, list what the business owns outright and what is already pledged. A lien filed for an earlier equipment loan or advance can limit what a new partner can take as security, and the partner will find it in its search either way.
Term Loan vs Line of Credit Across Greenwood County, SC
A term loan suits an expense that happens once and has a known size: buying an existing store, a remodel, a second location. The money arrives in one sum and the payment stays the same until it is repaid. A line of credit suits an expense that comes back: inventory ahead of a stronger month, payroll while invoices are open. You draw what you need, pay interest on the drawn balance, and the limit reopens as you repay.
Using a line of credit for a long-lived purchase ties up the limit for years. Using a term loan for a repeating gap means paying interest on money that sits idle between gaps. Matching the shape to the expense avoids both.
What Can You Use a Business Loan for? How Greenwood County, SC Owners Approach It
Partners lend for business purposes they can see and price: payroll and supplier bills, equipment, stock, renovation, buying a business or a partner's share, and refinancing older business debt. Each purpose has its own page here, and the purpose shapes which records a partner wants. A remodel calls for a contractor's estimate; inventory calls for supplier invoices; a business purchase calls for the seller's tax returns and the purchase agreement.
Personal expenses, real estate held as an investment and a business that has not yet opened fall outside the six funding types on this site.
Equipment Lease vs Loan: When It Fits in Greenwood, SC
With an equipment loan the business owns the machine from the start and the loan is secured by it. With a lease the lessor owns it and the business pays to use it, with an option at the end to buy, return or renew, depending on the lease type. A loan can suit equipment kept for its whole working life, such as a two-post lift or a commercial range. A lease can suit equipment replaced on a cycle, such as point-of-sale terminals or diagnostic scanners. The equipment financing page works through both, and a tax adviser can explain how each is treated on your return.
Types of Commercial Loans for Greenwood, SC Firms
Beyond the six types here, commercial lending also includes commercial real estate mortgages, construction loans and government-backed programs, which this site does not arrange. For an operating business that needs money for wages, stock, equipment or a purchase, the six cover the ground. If the expense is tied to a particular line of work, the industry pages show which types each one leans on, from a restaurant's kitchen line to a pharmacy's stock.
Add Up Every Dollar Repaid, Then Choose
Rates, factor rates, fees and terms are set by the partner, so the cleanest comparison between two offers is the total number of dollars repaid against the amount received, together with the payment size and how often it is taken. Ask for every fee in writing, and for what happens if you repay early.
Illustration only, invented figures: $60,000 at 10% over 36 months is a payment of $1,936.03 a month and $69,697.12 in total; the same sum over 60 months is $1,274.82 a month but $76,489.36 in total. The longer schedule lowers the payment and raises the total cost by $6,792.24 (our arithmetic).
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