Ravenmoor Finance, a small-business funding broker in Ocala, Florida, compares six structures on this page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each row shows how the money is paid back, what it is used for and what partners review. Each funding decision belongs to a lending partner.
Six structures across one grid
| Structure | Repayment pattern | Common uses | What partners review |
|---|---|---|---|
| Working capital | Short schedule, often weekly or monthly | Payroll, taxes, a supplier invoice | Bank deposits, receivables |
| Term loan | Fixed installments to a zero balance | Build-outs, expansion, payoffs | Cash flow, tax returns, the project |
| Line of credit | Interest only on what is out; repaid funds can be drawn again | Recurring, uneven costs | Deposits over time, debts already owed |
| Inventory financing | As stock sells or on set dates | Supplier orders ahead of sales | Stock reports, sales history |
| Equipment financing | Installments or lease payments | Machines, trucks, fit-out fixtures | The quote and the asset itself |
| Merchant cash advance | Collected from future receipts (not a loan) | Short needs at card-heavy shops | Card and bank receipts |
Read the second column before anything else. A payment schedule that does not match the way your deposits arrive is the most common reason a funding choice turns into a problem later.
Weeks, months or years
Working capital, a line of credit and a merchant cash advance are built for needs measured in weeks or months. Term loans and equipment financing stretch across years, which lowers each installment but usually raises the total paid. When an owner asks what are the four types of business loans, the honest answer is that the categories overlap; the useful split is how long the money stays out and what it is tied to.
A term loan can be used for almost any business purpose a partner accepts, including a refinance of a costlier balance. Using business funding to pay yourself is a different matter: partners look closely at owner draws, so raise it on the first call rather than after an offer.
Secured or unsecured
Secured funding is tied to an asset the partner can claim if payments stop: the equipment being bought, the inventory on the shelf, sometimes receivables or property. Unsecured funding relies on the business's cash flow and credit, and partners often ask for a personal guarantee from the owner instead. Many secured deals come with a UCC filing, a public notice of the partner's interest in the collateral.
One is not inherently superior to the other. Secured funding can carry a lower cost; unsecured funding leaves assets free for other lenders. Ask which one a partner is proposing before you compare prices.
SBA-backed loans and where they sit
Plenty of Florida owners start by searching for SBA loans. SBA-backed loans come from lenders that take part in the agency's programs, and those lenders run their own applications. SBA-backed lending is outside what Ravenmoor Finance arranges, and the firm has no tie to the agency. If an SBA-backed loan suits your situation, a lender that participates in the program is the right first contact.
For everything else, the Florida business loan guide walks through the records partners ask for in the order they usually ask for them.
Questions to put to any offer
- What is the total amount I will pay back, in dollars?
- On what schedule, and from which account, will payments be taken?
- Is there a cost to pay off early, or does early payoff save anything?
- Is any collateral or personal guarantee involved?
- Will a UCC filing be recorded, and against which assets?
A partner that cannot answer these in writing is giving you a reason to wait. We go through the same list with you before you sign.
By Ravenmoor Finance · Updated