Compare financing types.
Each type is paid out, repaid and secured differently. Here’s how they line up. Terms always depend on the lender and your business.
At a glance.
| Type | Best for | How you receive funds | How you repay | Usually secured by |
|---|---|---|---|---|
| Term loans | Planned investments with a known cost | One lump sum up front | Fixed payments over a set term | Business assets or guarantees; some are unsecured |
| Lines of credit | Uneven cash flow and short-term needs | Draw as needed, up to a limit | Interest on what you use; repay and redraw | Business assets or guarantees |
| Equipment financing | Machinery, vehicles and technology | Paid to the seller for the asset | Fixed payments, often matched to the asset’s life | The equipment itself |
| Invoice factoring | Long customer payment terms | An advance on each invoice | Your customer pays the factor | Your receivables |
| Commercial real estate | Buying or refinancing business property | Lump sum at closing | Scheduled mortgage payments | The property |
| Business acquisition | Buying a business or a partner’s share | Lump sum at closing | Fixed payments over a set term | The business’s assets and cash flow, often with guarantees |
How to choose.
01
Match the term to the need
Long-lived assets suit longer financing; short-term gaps suit revolving credit or factoring.
02
Know what you can secure
Equipment, receivables or property can open options and improve terms.
03
Compare the total cost
Look at fees and total interest, not just the rate or payment.
The right financing, from the right partner.
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