On this page Marbleharbor Advances, a small-business funding broker in Franklin, Tennessee, sets six funding types against each other: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. The table shows how each is repaid and what it suits. Lending partners, not Marbleharbor Advances, approve requests and set rates and terms.
All six options at a glance
| Option | How the money arrives | How it comes back | Usually suits |
|---|---|---|---|
| Working capital | One sum | Fixed installments over months | Bridging costs paid before revenue lands |
| Term loan | One sum | Installments over a set term, often years | Expansions, build-outs, refinancing |
| Line of credit | Draws up to a limit | Payments on the drawn balance; the limit refills | Recurring costs of varying size |
| Inventory financing | Pays for a stock purchase | Paid down as goods sell | Retailers and wholesalers buying ahead |
| Equipment financing | Pays the seller | Installments or lease payments | Machines, vehicles, clinical and kitchen gear |
| Merchant cash advance | One sum for future receipts | Remitted from sales until the purchased amount is collected | Businesses with steady card sales; it is not a loan |
Read across a row before you read down a column. Two options can both cover payroll, yet one asks for a fixed weekly debit and the other takes a slice of every card batch. That difference matters more than the label.
Short term or long term?
A rough rule: match the length of the funding to the life of what it buys. Money for a payroll gap should be gone in months. A build-out that will serve patients for a decade can reasonably be paid over years. Mismatches cost money both ways: long financing for a short need keeps interest running after the need is gone, and short financing for a long asset squeezes cash flow with large payments.
Working capital, inventory financing and merchant cash advances sit at the short end. Term loans and equipment financing sit at the longer end. A line of credit is open-ended by design but works well when each draw is repaid within the cycle that caused it.
Secured or unsecured?
Secured funding is backed by specific collateral: the equipment being bought, the inventory on the shelf, sometimes receivables or real estate. Unsecured funding has no specific asset pledged, but partners commonly ask for a personal guarantee from each major owner and may file a UCC financing statement against business assets in general. "Unsecured" rarely means nothing is at stake, so read the security and guarantee sections of any contract.
Before applying, it helps to confirm the business's own records are clean. The Tennessee certificate of existence guide explains how to check the company's standing with the Secretary of State, which partners often verify.
Business credit card or business loan?
Business credit cards are convenient for small, frequent purchases and carry no application per purchase, but their interest is usually charged on any balance carried past the grace period, and limits tend to be modest. A loan or line of credit is built for larger amounts and a planned repayment. Many owners use both: the card for travel and supplies, a line or loan for anything that would take months to pay off.
Where SBA loans fit
SBA-backed loans are made by banks and other approved lenders under U.S. Small Business Administration programs. SBA loans are not something Marbleharbor Advances arranges. If your timeline allows for a longer process, the SBA Tennessee district page explains the programs, and the Williamson County resources page lists free advising that can help you prepare.
What any partner will ask about
- What the money is for and how much it costs.
- Recent business bank statements showing actual deposits.
- How long the business has operated, and its legal structure.
- Existing debt payments, leases and any advances already being remitted.
- Owner credit, and sometimes collateral.
Each partner weighs these differently. The four stages of a request show where that review happens.
By Marbleharbor Advances · Updated