Quarryfield Capital Group, a small-business funding broker in Hillsboro, Oregon, compares six options on this page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each is grouped by how it is paid back or collected, what it suits and what lending partners usually examine. Lending partners approve or decline every request.
The six options by payment rhythm
| Option | Money goes back by | Suits | What partners examine |
|---|---|---|---|
| Working capital | Fixed debits over a short span | Payroll, supplier invoices, a tax bill | Deposit history, months in operation |
| Term loan | Equal amortizing installments to zero | Build-outs, expansion, a payoff | Cash flow, tax returns, the stated purpose |
| Line of credit | Repay what you drew; room reopens | Uneven costs that keep recurring | Deposits, credit history, current debt |
| Inventory financing | As stock sells, or on fixed dates | Merchandise purchased ahead of sales | Stock reports, sales records, existing liens |
| Equipment financing | Installments or lease payments | Chairs, ovens, loaders, vans | The quote, the asset's age, cash flow |
| Merchant cash advance | Funder collects a slice of future receipts | Card-heavy sales, a short horizon | Card and bank receipts |
Match the funding to the life of the purchase
The repayment clock and the useful life of the purchase ought to run roughly together. A payroll gap that closes when an owner's draw arrives is a short problem, and working capital or a revolving line fits it. A second dining room or a new operatory earns back over years, and forcing it into a short structure makes every payment heavier than the business needs.
In Washington County, OR, 8,598 of the 16,355 employer establishments counted in 2023 had fewer than five employees (County Business Patterns 2023). At that size a single mismatched schedule can swallow a month's margin, which is why the first question we ask is about dates: when the bill is due, and when the money that pays it back is expected.
Collateral: secured, unsecured and the UCC filing
Secured funding is backed by something the partner can claim on default: the equipment being bought, the inventory being financed, or a general lien on business assets. Unsecured funding names no specific collateral, though partners frequently file a UCC financing statement anyway and may ask an owner to sign a personal guarantee.
Partners also look at whether the business itself is in good order with the state. Our Oregon certificate of existence and annual report guide explains how owners check entity status before a partner runs the same search, and why a lapsed annual report can hold up an otherwise clean file.
A credit line, a card or a loan
Owners often ask whether a business credit card would do the job a line of credit does. Both revolve, but a line is usually set up for larger draws tied to operating costs and is paid back into the business account, while a card is built for many small purchases. A term loan is different again: one disbursement, then fixed payments until the balance reaches zero. Which one fits depends on whether the cost repeats, how large each outlay is, and how quickly the cash that repays it comes back.
The line of credit page covers draws and paydowns in detail, and the business loan calculator shows the monthly payment, total interest and total repaid for any amount, rate and term you type in.
SBA programs and where we fit
SBA-backed loans come from participating banks and credit unions; Quarryfield Capital Group neither makes nor arranges them. Owners who want an SBA-backed loan usually go to a bank or credit union that participates in the program. Free advising on that path is covered in the Washington County, Oregon small business resource guide.
Comparing two offers
A partner may quote an APR, a factor rate or a flat fee, so lay each offer out the same way: the amount you actually receive, every payment and when it is due, the total you pay back, any prepayment terms, and what happens if a payment is late. The offer with the lower periodic payment is not always the cheaper one; a longer term or a holdback that runs until a set sum is collected can cost more in total.
Whatever the choice, the decision is the partner's to make and yours to accept.
By Quarryfield Capital Group · Updated