Truepine Business Funding, a small-business funding broker in Carson City, Nevada, compares six structures here: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each is matched to the kind of cost it suits and how it is repaid or collected. Lending partners make every credit decision and set all terms.
All six structures in one table
| Structure | Suits | How it comes back | Often secured by |
|---|---|---|---|
| Working capital | Short timing gaps: payroll, supplier bills, waiting on receivables | Set installments over a few months | Business assets and often an owner's guarantee |
| Term loan | A defined project: remodel, expansion, refinance | Fixed installments over a longer term | Business assets; sometimes real estate |
| Line of credit | Costs that recur at uneven sizes | Interest on the drawn balance; repay and redraw | A blanket lien or specific receivables |
| Inventory financing | Stock bought before it sells | Repaid as the goods sell, on a schedule | The inventory itself |
| Equipment financing | Machines, vehicles, clinical or kitchen equipment | Loan or lease payments over the useful life | The equipment |
| Merchant cash advance | Urgent needs when loan options are closed | Not a loan: a share of future receipts is remitted | Future receivables, often with a guarantee |
The table is a starting map, not an eligibility test. Each partner sets its own criteria and may structure an offer differently.
Short term or long term
Match the length of the financing to the life of what it pays for. A payroll gap that closes when a customer pays in six weeks should not be spread over five years; a kitchen hood that will run for a decade should not be squeezed into a few months of heavy payments. Getting the term wrong in either direction is the most common mistake we see in first requests.
Secured and unsecured
Secured financing is tied to a specific asset, such as a truck, a dental chair or a warehouse of stock. Unsecured business financing has no specific collateral, but it often comes with a personal guarantee and a broad lien filed against business assets. Ask any partner exactly what will be filed and against what. The Nevada UCC search guide shows how to check existing filings before you apply.
A business loan, a line of credit or a credit card?
A business credit card is handy for small, everyday purchases that are cleared each month. Carried balances usually cost more than a line of credit, and the limits are lower. A line of credit suits larger costs that come and go; a term loan suits a single project with a price tag. Many businesses use all three for different jobs.
Where SBA loans fit
SBA-backed loans are made by banks and other approved lenders with a partial federal guarantee to the lender. They can have longer terms but involve more paperwork and time. SBA loans are outside our work: Truepine Business Funding neither makes nor arranges them. The free Nevada SBDC advisers listed in our directory can help you prepare an SBA application yourself, and the Nevada loan preparation guide covers the documents.
What partners commonly review
- How long the business has operated and how it is registered
- Recent business bank statements
- Tax returns plus up-to-date financial statements
- Existing debts, liens and payment history
- The owners' credit, often with a personal guarantee
- What the money is for, and the quote or invoice behind it
Requirements differ by partner and by structure. How a request moves covers every stage from first call to offer.
By Truepine Business Funding · Updated