Pick the product by the cost: payroll gaps suit short loans or draws, machines suit equipment financing, long-lived costs suit term loans and stock suits inventory financing. The cash advance stands apart: a provider collects it from card sales, and it is not a loan. All figures in the examples are invented.
Matching each cost to a product: a Brownwood, TX concrete contractor's list
Sorting out which product fits starts with the cost, not the product name. A concrete contractor in Brownwood, TX can run into several kinds of cost in one quarter, and each one points to a different option.
| Cost | Product that can fit | Why it fits |
|---|---|---|
| A towable concrete mixer | Equipment financing | The mixer itself can secure the agreement |
| Crew payroll while a customer pays on 30-day terms | Working capital loan | Short schedule sized to the gap |
| A power trowel and a second set of forms | Business term loan | Fixed payments over the tools’ working life |
| Rebar and form stock kept in the yard | Inventory financing | Tied to stock that goes into jobs |
| Repeat material orders through the year | Business line of credit | Draw, pay down and draw again |
The sixth product, a merchant cash advance, fits only a business with steady card sales, so a contractor paid by check may have no use for it. Before any of these, the loan paperwork article lists the statements, returns and debt schedule a partner may ask for.
Types of commercial loans a Brownwood, TX plant can line up for an industrial 3D printer
Very small manufacturers are the exception here: 16.7% of the 24 manufacturing establishments at a ZIP 76801 address in 2023 had fewer than five employees (ZIP Code Business Patterns). For a Brownwood plant adding an industrial 3D printer to make fixtures and short-run parts, the commercial loan types fall into a few groups:
- A term loan: the whole sum up front, then one fixed installment each month until the term ends
- An equipment loan or lease, where the machine is the collateral or stays the funding source’s property until the end
- A credit line for the print material, nozzles and spare parts the printer uses after it is running
- Inventory financing for finished goods stacked up before an order ships
Each has its own page on this site, and a partner may suggest a different structure from the one named on the first call. A printer that runs from an existing outlet needs no building work; a dedicated circuit or venting added for it would be property work outside this site.
What is a business term loan? A Brown County, TX quick-service restaurant's combi ovens
A business term loan pays out one amount and is paid back in equal payments over a fixed term, with interest on the balance that is left. Combi ovens fit that pattern: a fixed quote and years of service ahead.
Illustration only, invented figures: in this invented case a quick-service restaurant prices two combi ovens at $18,600 and looks at 48 months at an 11.35% annual rate. At $483.89 for 48 invented months, the ovens end up costing $23,226.72, of which $4,626.72 is invented interest.
Ovens need water and power connections; the plumbing and electrical hookup is property work outside this site, and only the ovens themselves are the cost in this case. The term loans page shows how term length changes the total.
What is a business line of credit? A Brownwood, TX dental office's property tax bill
Think of a business line of credit as a ceiling: the office borrows under it as bills land, repays, and the room reopens. Interest is charged only on the part that is drawn, for as long as it stays drawn.
Illustration only, invented figures: in this invented case a dental office draws $6,900 for a business property tax bill at a 14.2% annual rate and pays it down in three equal parts of $2,300.00. Interest on the invented draw comes to $81.65, $54.43 and $27.22 over the three months, or $163.30 in this invented case.
With the tax bill cleared, the office can draw against the whole limit again. The line of credit page takes the limit, the draw period and renewal one at a time.
Where equipment financing fits for a Brownwood, TX plant pricing an injection molder
Here the money is bound to a single machine through a loan or a lease, so the molder itself can stand as security. It differs from a general term loan mainly in that link between the money and the equipment.
Illustration only, invented figures: in this invented case a plant finances an injection molder priced at $84,500 over 72 months at a 9.45% annual rate. Spread across 72 invented months at $1,542.10 each, the molder costs $111,031.20, and $26,531.20 of that sum is invented interest.
Power runs and any floor work for a machine of that size are property work outside this site. Equipment financing has its own page, with loan and lease cases worked through.
What is a merchant cash advance? A Brownwood, TX pet supply store restocking its shelves
Unlike the other five products, a merchant cash advance is not a loan at all. A provider buys a share of the business’s future card sales for a set price and collects it as a percentage of each day’s card receipts until the agreed total is in.
Illustration only, invented figures: in this invented case a pet supply store receives $13,600 to restock its shelves, at a 1.28 factor. The provider collects $17,408 in this invented case, $3,808 above what the store received.
With an invented 13% holdback and $1,570 of card sales a day, $204.10 goes to the provider each business day, and the invented total is collected in about 86 business days. Slower card weeks stretch that out.
A business paid mainly by check or bank transfer may find that an advance does not fit at all.
By Deltagrove Loans · Updated
