Trueleaf Finance, a small-business funding service in Saginaw, Michigan, lays out six funding structures for owners in Saginaw County: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. This page compares them by purpose, repayment pattern and collateral, with no rates or amounts, and points each money purpose to the page that covers it.
The Six Trueleaf Structures Side by Side
| Structure | Typical job | The way it comes back | Usual security |
|---|---|---|---|
| Working capital | Wages, vendor bills, brief gaps | Set installments, short horizon | Revenue, often with an all-assets lien |
| Term loan | Remodels, second sites, buying a practice | Level installments for the full term | Business assets, once in a while property |
| Line of credit | Uneven months, repeat small needs | Interest on the drawn part; reusable | Receivables, goods or an all-assets lien |
| Inventory financing | Shelves filled ahead of the sale | Shrinks as the goods leave | The inventory |
| Equipment financing | Lifts, chairs, mowers, ovens | Installments or lease payments | The equipment |
| Merchant cash advance | Brief needs, heavy card sales | A cut of receipts goes to the provider | Bought receivables; never a loan |
Money Purposes and Where Each One Is Covered
Almost any legitimate business purpose, as long as the structure matches it. Typical uses of business funding each have a home on this site:
- Payroll and wages the payroll section of the working capital page
- Inventory purchases the stock-ahead-of-demand section on inventory financing
- Used, restaurant or contractor equipment the used equipment section on equipment financing
- Seasonal or lumpy revenue the seasonal section on lines of credit
- Expansion, a second location or an acquisition the expansion section on term loans
Personal expenses, real estate speculation and anything unrelated to running the business sit outside these programs.
Property Purchases and Business Loans
Sometimes. A term loan can fund a building the business will occupy, and some partners finance owner-occupied property, but commercial mortgages are a separate product with their own appraisal and title steps. If property is part of a larger plan, such as buying a practice that owns its building, say so on the first call so the request goes to partners that handle it.
Secured Versus Unsecured, Seen From the Owner's Chair
A secured loan is tied to collateral: the equipment being bought, inventory, receivables or a blanket lien on business assets. An unsecured loan has no specific collateral, though a personal guarantee from the owner may still be required. Security can affect price and term as well as how a file is read, and partners describe their requirements in writing with each offer.
The Four Types of Business Loans Owners Hear Named
Lists differ. Four types that appear on lists of business loan types are term loans, lines of credit, equipment financing and SBA-backed loans. Trueleaf works with the first three plus working capital, inventory financing and merchant cash advances; it does not arrange SBA loans. If an SBA program fits your purpose better, a bank or credit union is the place to ask.
Still torn between rows? Read how a request moves or the industry notes, or look over county business counts for context.
By Trueleaf Finance · Updated
