Here, six ways to fund a Bradley County business sit side by side: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Slatebend Business Capital, a small-business funding broker in Cleveland, Tennessee, explains each one and introduces requests to lending partners, which decide and set the terms.
Six structures, one table
| Structure | Usual purpose | How it comes back | Common security |
|---|---|---|---|
| Working capital | Wages, rent, supplies during a gap | Set installments over a matter of months | Business assets or a guarantee |
| Term loan | Fit-outs, a second site, refinancing | Amortized installments over years | Business assets, sometimes property |
| Line of credit | Recurring, uneven costs | Interest on the drawn balance; the limit refills | Receivables or a general lien |
| Inventory financing | Stock ahead of sales | Payments as goods sell, or on a schedule | The inventory |
| Equipment financing | One specific machine, vehicle or system | Monthly payments or lease rentals | The equipment |
| Merchant cash advance | Short needs in card-heavy businesses | A share of future receipts until the agreed total is collected | Not a loan: a purchase of future receivables |
The right-hand column matters more than it looks. A partner that holds a lien on inventory or equipment can take that collateral if the agreement is broken, and many partners also ask for a personal guarantee from the owner.
What are the four types of business loans, then?
Lists that count four usually mean term loans, lines of credit, equipment loans and a short-term or working capital loan, sometimes with SBA loans as a fifth. The count is less useful than the question underneath: is this a one-time cost, a recurring one, a specific asset or a stock purchase? Inventory financing and merchant cash advances are left off many such lists, the second because it is not a loan at all.
Short term or long term
Match the length of the money to the life of what it buys. Payroll or a supplier bill that will be covered by next month's receipts belongs in short money. A fit-out that serves the store for ten years belongs on a longer schedule, because squeezing it into a few months makes each payment heavier than the business can comfortably carry.
Secured vs unsecured business loans
A secured loan is backed by named collateral: equipment, inventory, receivables or property. An unsecured loan has no specific collateral, though the partner may still file a general lien on business assets and ask for a personal guarantee. Unsecured usually means the partner leans harder on revenue, time in business and credit history, so read any agreement for a UCC-1 filing and guarantee language even when the word unsecured appears.
What a Business Loan Can Pay For
- Payroll and operating costs during a slow-paying stretch.
- Store stock, supplies and seasonal or bulk orders.
- Equipment, vehicles for the business, and technology.
- Leasehold improvements, a second location or an expansion.
- Refinancing more expensive business debt.
Personal spending, real estate speculation and consumer purchases are outside what partners fund through these structures, and outside what we arrange. Questions to ask before you borrow covers what to check once a use is settled.
SBA loans and Tennessee options
Many searches for small business loans in Tennessee lead to SBA-backed loans. Slatebend Business Capital neither lends under SBA programs nor arranges SBA loans. Owners set on an SBA loan can start from the SBA Tennessee District Office page at sba.gov/district/tennessee (evidence pack, verified 2026-10-16), and the Bradley County help page covers other no-cost options to try first.
Picking one in practice
Start from the purpose, then check the repayment rhythm against your cash flow. If two structures fit, compare the total cost and the payment calendar, not the headline rate. When the choice is close, working capital and a credit line are the pair owners most often weigh, and term loans cover the longer projects.
By Slatebend Business Capital · Updated
