Fairleaf Commercial Capital, a small-business funding broker in Spartanburg, SC, compares six funding structures on one page: how each is repaid or collected, what it usually pays for, and what lending partners tend to look at. Fairleaf is a broker, not a lender, and is not an SBA lender; partners decide and set every rate and term.
Fairleaf's six structures, one table
| Structure | How it goes back | Usually pays for | Often secured by |
|---|---|---|---|
| Working capital | Set installments across a few months | Payroll, supplies, the gap before invoices settle | A blanket lien on business assets |
| Term loan | Equal installments that retire principal plus interest | Build-outs, expansions, a one-time project | Business assets, sometimes real estate |
| Line of credit | Pay down what you draw; the limit refills | Recurring gaps of uneven size | A general lien or receivables |
| Inventory financing | Repaid as the stock sells or on a schedule | Opening stock, restocks, bulk orders | The inventory itself |
| Equipment financing | Monthly payments over the asset's working life | Machines, vehicles, ovens, clinical gear | The equipment being bought |
| Merchant cash advance | A share of daily card or deposit receipts is collected | A short gap when speed outweighs cost | Future receivables (not a loan) |
Short horizon or long horizon
A useful first split is time. Working capital financing and a business line of credit deal with weeks and months: a crew paid on Friday for a job billed next month, a supplier invoice due before a slow-paying customer settles. A business term loan and equipment financing deal with years, because the thing being paid for keeps producing value long after it is bought.
Matching the horizon matters. Paying for a renovation with a short-term product squeezes several years of benefit into a few months of payments; carrying a weekly payroll gap on a multi-year loan means paying interest long after the gap has closed.
Secured or unsecured
Secured funding names collateral: the equipment, the inventory, receivables, or sometimes property. Unsecured business funding has no specific asset pledged, but partners frequently file a general UCC lien on business assets and ask owners for a personal guarantee anyway. Read the security section of any agreement before you compare prices.
Inventory financing is the clearest secured case for a store: the shelves themselves back the deal. Retail had 1,112 employer establishments in Spartanburg County in 2023, the most of any sector there (U.S. Census Bureau, County Business Patterns 2023).
Where the merchant cash advance sits
A merchant cash advance is listed here because owners compare it with loans, but it is a different kind of contract. The funder buys a share of future card or bank receipts and collects it day by day. A merchant cash advance is not a loan, and its cost is quoted as a factor rate, not an annual percentage rate. Compare the total amount to be collected, not the daily figure.
Where SBA programs fit
Many owners searching for business loans in South Carolina start with the SBA. Fairleaf is not an SBA lender and does not arrange SBA-backed loans. For SBA programs, the SBA's South Carolina district page and the free advisers listed in the Spartanburg County resource directory are the right starting points.
What partners commonly look at
- Bank statements for recent months, so a partner can see deposits and balances.
- Time in business and the legal entity on record.
- Existing debts, liens and any advances still being collected.
- For equipment or inventory: a quote, invoice or stock list.
- Owner credit, which many partners check as part of their own review.
Requirements vary by partner and structure; Fairleaf tells you what a given partner is likely to request before anything is sent.
By Fairleaf Commercial Capital · Updated
