Orchardpeak Business Funding, a small-business funding service in Stillwater, OK, compares six funding options: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. The table shows what each pays for, how payments work and what partners usually review.
Six options, four columns
| Option | Typical use | How payments work | What a partner reads first |
|---|---|---|---|
| Working capital | Wages, rent and vendor bills | Fixed installments, short term | Bank statements, time in business, revenue |
| Term loan | Remodel, buyout, second location | Even installments to a fixed end date | Statements, tax returns, the project plan |
| Line of credit | Uneven months, repeat bills | Repay what you draw; the limit revolves | Deposit history and how balances move |
| Inventory financing | Stock and parts | Installments; the goods often secure it | How fast stock sells, plus vendor invoices |
| Equipment financing | Vehicles, machines, fixtures | Installments or lease payments | The quote, the equipment, your statements |
| Merchant cash advance | Brief need, mostly card revenue | A holdback from future receipts (not a loan) | Card and bank deposit volume |
What are the four types of business loans, and where do the other two fit?
A familiar grouping of the four types of business loans is term loans, lines of credit, equipment financing and working capital loans. Inventory financing is a narrower kind of secured financing, and a merchant cash advance is not a loan at all: it is a sale of part of your future receipts. Listing all six keeps the comparison honest.
Types of commercial loans can also mean real estate lending, which is a separate market. The options here fund the operating side of a business: people, stock, machines and projects.
Purpose index: from the expense to the right page
- Payroll: can a working capital loan cover payroll?
- Stocking up: inventory financing for planned orders
- Used, restaurant or contractor equipment: used equipment financing
- Uneven or seasonal months: drawing on a line in a short month
- Expansion or a second location: a term loan for growth
Types of working capital loan, with three local-style examples
Working capital can arrive as a short term loan with fixed payments, as a revolving line, or, for businesses paid mostly by card, as an advance against future receipts. Example: a Stillwater, OK insurance agency waiting on commissions might use a line; a landscaping company buying fuel and paying crews ahead of invoices might prefer a fixed short-term loan; a busy diner might be offered an advance. Each one costs a different amount over the same period, which is why the comparison starts with repayment.
Types of collateral for business loans and what each puts at stake
Partners secure financing in different ways. Equipment and inventory financing are usually secured by the asset being bought. Term loans and lines of credit may be secured by business assets in general, and partners may ask owners for a personal guarantee. Some working capital products rely mainly on cash flow. Ask every partner what secures the offer, in writing.
Types of equipment financing follow the same logic: a loan where you own the item from day one, a lease where you pay to use it, or a lease with a purchase option at the end. The equipment page compares them.
How to get a business loan for a small business, in four moves
- Write down the purpose and the amount the expense really needs, not a round number.
- Pull the last few months of business bank statements and check that deposits match what you will report.
- Compare the total cost in dollars and the payment rhythm of at least two options from the table above.
- Send the online request or call; a funding partner reviews it and decides.
Industry examples live on the industries page. Local paperwork, such as registering an Oklahoma trade name, is covered in the guides, and county figures are on the Stillwater, OK page.
By Orchardpeak Business Funding · Updated