Match the option to what the money buys: repeat orders suit a credit line, a machine suits equipment financing, one lasting purchase suits a term loan, and a gap before claims or invoices clear suits short-term money. A cash advance is not a loan.
What Is a Business Line of Credit? Plant Orders at a Lewiston, ID Landscaping Crew
A business line of credit is an approved limit the business can draw from, pay down and draw from again. Interest runs on the balance that is out, not on the unused limit. For a landscaping crew in Lewiston, ID that orders plants, sod and stone for each job and bills the customer when the job is done, the line covers the order and the customer payment pays it down.
A line is a poor fit for a purchase that lasts years. Drawing it down for a skid steer leaves no room for the next plant order, so machines belong with equipment financing. For a gap of weeks, working capital is the one-time option.
Is Equipment Financing a Loan? A Wheel Balancer for a Lewiston, ID Auto Repair Shop
Sometimes. An equipment loan is a loan secured by the machine: the shop owns the wheel balancer and the funding partner holds a lien until the last payment. On paper, an equipment finance agreement reads much like a loan. A lease is different: the leasing company owns the balancer during the term, and the end of the lease decides whether the shop buys it, returns it or renews.
The equipment financing page compares loans, finance agreements and leases in more detail, including how a buyout at the end changes the total.
What Is a Merchant Cash Advance? Card Sales at a Lewiston, ID Therapy Office
Think of it as the therapy office selling next month's card swipes, and the ones after, at a discount today. The provider pays a sum now and collects an agreed larger amount by taking a fixed share of each day of card sales. It is not a loan, there is no interest rate, and the cost is set by a factor.
Illustration only, invented figures: a Lewiston therapy office accepts a $12,000 advance at a 1.28 factor, and the provider collects $15,360 in all. With a 9% holdback and card sales of $1,400 on an average business day, $126 goes to the provider each day, and the full amount is collected in about 122 business days. Slower card days stretch that out; busier days shorten it.
Secured vs Unsecured Business Loans for a Lewiston, ID Restaurant With Payroll Due
A secured loan is backed by collateral the partner can claim if payments stop: a range line, a walk-in cooler, receivables or a general lien on business assets. Unsecured means no named asset stands behind the loan; the partner can still require the owner to sign a personal guarantee.
For a restaurant covering payroll, the question is less about the label and more about what the agreement says. Read which assets a lien covers, whether a personal guarantee is required and what happens to the lien when the balance is paid.
Types of Commercial Loans in One Table, With Uses Seen in Lewiston, ID
| Option | What it can pay for | How it goes back |
|---|---|---|
| Commercial line of credit | Food, parts and supply orders that repeat | Pay down what is drawn; the room opens again |
| Short-term working capital | Payroll while claims or invoices are pending | Fixed payments over months |
| Commercial term loan | Kitchen equipment, a partner buyout, a business purchase | Fixed payments over years |
| Equipment financing | A range, a lift, a mower, a treatment table | Loan or lease payments while the machine is in service |
| Inventory financing | Parts, menu stock, plant material | Repaid as the stock sells |
| Merchant cash advance (not a loan) | A cost that card sales will cover | A share of each day of card sales |
None of the six covers a startup with no revenue yet, a real estate purchase or a building construction loan, and none covers trucking companies or agriculture.
What Is a Business Term Loan? A Hardscape Saw and Trailer in Lewiston, ID
With a business term loan, the whole amount arrives on day one and goes back in level monthly installments until the agreed last month. Part of every installment pays that month of interest and the rest chips away at principal, so the balance shrinks on schedule.
Illustration only, invented figures: a landscaping company finances a $26,000 hardscape package, a wet saw, a plate compactor and a trailer, over 48 months at 9.75%. Four years of $656.31 installments send $31,502.88 back to the funding partner, $5,502.88 of it interest on the hardscape gear. The term loan page covers buyouts and longer terms. Why two offers for the same amount can cost different totals is worked through in our post on loan offer costs.
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