Business funding comes in six common forms: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances, which are not loans. Kitehill Commercial Capital, a small-business funding broker in Greenville, South Carolina, compares them with owners and sends each request to lending partners, which decide and set terms.
The six types side by side
Lending partners design their own products, so treat this as a map of common structures rather than a description of any specific offer.
| Type | How money arrives | How it is paid back | Usually suits | Details |
|---|---|---|---|---|
| Working capital | Lump sum | Fixed installments, often weekly or monthly | A gap with an end date | Working capital |
| Term loan | Lump sum | Scheduled installments over a set term | A priced project or purchase | Term loans |
| Line of credit | Draws up to a limit | Payments on what you have drawn; repaid amounts can be drawn again | Needs that recur at different sizes | Lines of credit |
| Inventory financing | Advance against stock | Repaid as goods sell, or on a schedule | Buying stock ahead of demand | Inventory financing |
| Equipment financing | Pays the seller or lessor | Installments or lease payments tied to the asset | A specific machine, vehicle or system | Equipment financing |
| Merchant cash advance (not a loan) | Lump sum for future receipts | Remitted as a share of sales or by scheduled debits | Card-heavy sales; costly, so compare first | Merchant cash advances |
Every row except the last is a form of credit. A merchant cash advance is a purchase of future receivables; it is collected, not repaid, and it is priced differently from a loan.
Short money or long money?
Match the life of the funding to the life of what it buys. A seasonal stock purchase that sells through in a few months should not be stretched over years, and a commercial oven expected to last a decade should not be squeezed into a few months of heavy payments. Working capital, credit lines and advances are short-horizon tools. Term loans and equipment financing run longer because the things they pay for keep earning longer.
Secured or unsecured?
Secured funding names collateral the lender can claim if payments stop: the equipment being bought, the inventory on the shelves, or sometimes a general lien on business assets. Unsecured funding names no specific asset but usually leans harder on cash flow and credit history, and many partners ask owners to sign a personal guarantee either way. When a partner secures its funding, it typically files a public UCC financing statement; the South Carolina UCC guide explains how to find and read those filings.
Read the collateral clause before you sign. A blanket lien covering all business assets can make the next lender hesitate, even for an unrelated equipment purchase.
Where SBA loans fit
SBA loans are made by banks and other approved lenders, with the U.S. Small Business Administration backing part of the loan. They are not one of the six types Kitehill handles, and Kitehill is not an SBA lender. If an SBA loan is what you are after, the SBA's South Carolina District Office, whose page lists Greenville among the counties it serves (sba.gov, accessed 2026-10-15), is the place to start, and the Upstate resource directory lists free help nearby.
Questions that narrow it down
- What exactly will the money buy? Payroll, stock, a machine and a build-out each point somewhere different.
- When does the money come back? A specific invoice, a selling season and years of higher output are three different answers.
- Is this the first time, or does it keep happening? Recurring gaps argue for a credit line rather than repeated lump sums.
- What can you pledge? Equipment and inventory can secure their own financing; other needs may rest on cash flow.
- Can the slowest month carry the payment? Daily and weekly debits feel very different in a quiet week than in a busy one.
What partners commonly look at
Criteria belong to each lending partner. Across the six types, requests usually involve recent business bank statements, the entity's registration details, ownership information, a credit review of the business and often its owners, and any existing debts or advances. Equipment requests add a quote or invoice; inventory requests add stock records. The four-stage process shows where each document comes in, and the South Carolina checklist covers state registrations partners may confirm.
Choosing with a broker in the loop
Our job is to get the request in front of partners that offer the right type and to explain the paperwork in plain terms. You still compare any offer yourself on total cost, payment schedule and collateral. The Greenville, SC page covers local data and free advising if you want a second opinion before you apply.
By Kitehill Commercial Capital · Updated
A question for the Greenville office?
Unsure which type fits? Call, or start online.