Brookmont Funding, a small-business funding broker in Terre Haute, Indiana, compares six options for Vigo County owners here: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances (not a loan). The table below shows the repayment pattern and best use of each. Partners, not the South 6th Street office, decide and price.
All six on one table
| Option | How it comes back | Built for | Usually secured by |
|---|---|---|---|
| Working capital | Equal payments over months, not years | A shortfall with an end date | A general business lien, often a guarantee |
| Term loan | Installments over a set number of months or years | One-time projects that pay off slowly | Business assets, often with an owner guarantee |
| Line of credit | Repay what you drew; the limit refills | Costs that recur unpredictably | A business lien, sometimes unsecured |
| Inventory financing | Paid down as the stock sells | Shelves stocked ahead of Vigo County sales | The inventory itself |
| Equipment financing | Installments or lease payments | Machines, vehicles, fixtures | The equipment being bought |
| Merchant cash advance | A share of receipts until a set total is remitted | Card-heavy businesses needing speed | Not a loan; future receipts are sold |
How long should the money stay out?
Match the life of the funding to the life of whatever it pays for. A payroll gap that closes in six weeks should not be carried for five years, and a kitchen expected to serve for a decade should not be squeezed into a few months of heavy payments. Short structures (working capital, a credit line, an advance) suit costs that turn back into cash quickly. Longer ones (term loans, equipment financing) suit assets and projects that earn over time.
Secured or unsecured?
Secured funding is tied to specific collateral: the oven, the van, the stock on the shelves. Unsecured funding has no single asset pledged, but partners commonly file a general lien on business assets and ask owners for a personal guarantee anyway, so "unsecured" rarely means "nothing at stake". Any lien a partner files becomes public; the Indiana UCC guide explains how to see what is already filed against your business.
When the business card is the wrong tool
A card is convenient for small, frequent purchases and pays off monthly. It is a poor fit for a large purchase you will repay over years, because revolving balances usually cost more than structured funding and push your utilization up. If you are carrying a card balance month to month to cover the same expense, that expense may belong in a credit line or a term loan instead.
What can business funding pay for?
- Payroll, rent and supplier invoices while receivables are outstanding
- Equipment, vehicles and fixtures
- Inventory bought ahead of sales
- Build-outs, relocations and a second location
- Buying out a partner or acquiring a business
- Refinancing costlier short-term obligations
What it should not pay for: personal, household or family expenses. Brookmont Funding works only on business purposes.
Where SBA loans fit
SBA-backed loans are made by participating lenders, with part of the loan backed by the U.S. Small Business Administration. Brookmont Funding neither makes nor arranges SBA loans; that route runs through participating lenders directly. Owners in Indiana who want to explore that route often start with free advising; the Wabash Valley resource list explains where to ask.
By Brookmont Funding ยท Updated