Shoreharbor Capital Group, a small-business funding broker in Wilson, North Carolina, compares six funding structures here by repayment pattern, typical use and what partners review: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances (not a loan). Every rate and term comes from the lending partner that decides.
The six structures at a glance
| Structure | How it comes back | Suits | Usually secured by |
|---|---|---|---|
| Working capital | Fixed installments over months | Timing gaps: payroll before receivables | Business assets or a general lien, often a personal guarantee |
| Term loan | Amortizing payments over years | Fit-outs, expansion, refinancing | Business assets, sometimes real estate |
| Line of credit | Interest on what is drawn; balance repaid and redrawn | Recurring, uneven costs | Receivables or a general lien, or unsecured |
| Inventory financing | Paid down as stock sells | Stock bought ahead of sales | The inventory itself |
| Equipment financing | Monthly payments over the asset's useful life | Machines, coolers, chairs, vehicles | The equipment |
| Merchant cash advance | A share of future receipts is remitted until the agreed total is collected | Businesses with steady card or bank receipts and an urgent need | Not a loan; future receivables are purchased |
Short-term versus long-term money
A useful rule: the financing should not outlive the thing it pays for, and it should not end long before that thing earns its keep. Payroll and stock turn over in weeks, so working capital, credit lines and inventory financing run short. A cooler or an excavator works for years, so equipment financing and term loans run longer. Paying for a five-year asset with a six-month product squeezes cash; paying for one month's payroll over five years means paying interest long after the benefit is gone.
Secured versus unsecured business loans
Secured financing names collateral the lender can claim on default, such as the equipment, the inventory or a blanket lien on business assets recorded through a UCC financing statement. Unsecured financing names no specific asset, but most unsecured business credit still asks for a personal guarantee from the owners, which puts personal assets behind the debt in a different way. Neither is automatically cheaper or safer; read what each contract lets the funder do if payments stop.
Business credit card or business loan: which job is which?
Think of a business credit card as a small revolving line you spend with plastic. It is convenient for small, frequent purchases and travel. For larger or longer needs, a term loan or a dedicated line of credit usually gives a clearer schedule and a cost that is easier to compare. Many Wilson, NC owners use both: the card for day-to-day buying, a structured product for anything big enough to need a plan.
What a business loan can be used for
Most business financing can pay for payroll, rent, stock, equipment, repairs, marketing, expansion or refinancing older debt. What it usually cannot pay for is personal spending, and some contracts restrict owner distributions or paying off other funders. The use-of-proceeds clause in the agreement is the place to check, and it varies by partner.
Where SBA loans fit in North Carolina
SBA loans are made by participating banks and lenders and partly backed by the U.S. Small Business Administration. Shoreharbor Capital Group does not arrange SBA loans. If an SBA loan suits your plan, the SBA North Carolina District Office (checked 2026-10-16) lists participating lenders and free counseling. Our Wilson County help directory gathers that office with other free resources.
What partners commonly review
Across all six structures, partners tend to look at recent business bank statements, time in business, owner credit, existing debts and the reason for the request. Equipment and inventory partners add quotes and stock records; a merchant cash advance funder focuses on card or bank deposits. Requirements are set by each partner and differ widely.
By Shoreharbor Capital Group · Updated