Six funding types sit on this page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each row shows the expense it fits, how it is paid back or collected, and where to read more. Whichever you pick, a funding partner reviews the request and sets any terms.
All Six Funding Types in One Table
| Funding type | Expense it fits | Payback or collection |
|---|---|---|
| Working capital | Payroll, rent and vendor invoices due before customers pay | Scheduled payments over a short term the partner sets |
| Term loan | An expansion, a remodel or buying an operating shop | Equal installments over a fixed number of months |
| Line of credit | Bills that repeat but land unevenly | Interest on the balance drawn; paying down reopens the limit |
| Inventory financing | Merchandise bought before it sells | Payments linked to the stock purchase, with the goods as part of the security |
| Equipment financing | A fryer line, a two-post lift, a dental chair, a skid steer | Monthly loan or lease installments; the fryer, lift or chair itself is the pledge |
| Merchant cash advance | A sale of part of future card or bank deposits | A share of deposits is collected as sales arrive; it is not a loan |
Read the right-hand column before the product name. An expense that earns its keep over four years suits four years of payments; a payroll gap of five weeks suits money that can be cleared in five weeks.
How Many Types of Business Loans? What It Means Around Clovis, NM
Counting depends on who is sorting. A bank may list a dozen loan products; a textbook may say there are four broad families: installment loans, revolving credit, asset-backed financing and receivables-based funding. This site works with six funding types that fit inside those families, and one of them, the merchant cash advance, is not a loan at all.
For a Clovis, NM owner, the count matters less than the fit. Curry County, NM had 1,018 employer establishments in 2023, and 485 of them, or 47.6%, had fewer than five employees (County Business Patterns; our arithmetic for the share). In a business that small, the owner is choosing the funding type personally, so a short list sorted by purpose saves time.
Small Business Loan vs Line of Credit: A Clovis, NM Overview
A small business loan here means a lump sum with a fixed schedule. A line of credit is a ceiling you borrow under, repay and borrow under again. The loan fits one priced expense with a clear end, such as a remodel of a dining room. The line fits bills that keep coming at uneven times, such as parts invoices for a repair shop that gets paid when each customer picks up a vehicle.
Curry County, NM had 30 auto repair employers in 2023 (County Business Patterns); a shop of that kind can carry both needs at once. Splitting the one-time cost from the repeating gap before you phone keeps the request clean. The business line of credit page explains draws and paydowns.
Weighing a Secured vs Unsecured Business Loan in Curry County, NM
A secured business loan names collateral: the machine bought, the inventory, receivables or a general lien on business assets. An unsecured loan names no specific asset, though the partner may still ask for a personal guarantee and may file a general lien. Security changes what the partner can recover if payments stop, so it shapes the partner's decision and the price it quotes.
- Equipment financing: secured by the item itself.
- Inventory financing: secured in part by the stock.
- Term loans and lines of credit: secured or unsecured, depending on the partner.
- Merchant cash advance: a purchase of receivables, with its own contract terms rather than a loan's collateral.
Ask every offer two questions: what is pledged, and is a personal guarantee required?
Business Loan vs Line of Credit: What Clovis, NM Owners Compare
Owners comparing a business loan with a line of credit can line up three things. First, timing: a loan delivers everything at once, while a line delivers what you draw. Second, cost: a loan charges interest on the full balance from day one; a line charges on what is outstanding, and some lines add a draw fee or an annual fee. Third, discipline: a loan ends on a date, while a line can stay drawn if nothing pays it down.
A health practice is one example. Ambulatory health care had 79 employer establishments in Curry County, NM in 2023 (County Business Patterns). A practice buying a new X-ray unit has a fixed cost and a long useful life, which points to a loan or equipment financing; the same practice covering staff pay while insurer payments are pending points to a line.
Business Loan vs Term Loan Around Clovis, NM
A term loan is one shape of business loan: the amount, the number of months and the payment are set at signing. Business loan is the wider label and also covers short working capital schedules and revolving lines. Asking for a term loan tells a partner the money has a planned purpose and a planned end date.
Illustration only, invented figures: a $90,000 term loan over 48 months at an invented 10% annual rate has a payment of about $2,283 a month, and in this invented example the 48 payments total about $109,566. The business term loans page shows how to test your own figures against a real offer.
Matching an Expense to a Funding Type in Clovis, NM
Start with the expense and the date cash returns, then use this list to find the page that goes deeper:
- Payroll or rent due before deposits clear: working capital.
- Supplier bills that repeat at odd intervals: a line of credit.
- A kitchen hood, a lift or an exam chair: equipment financing.
- Shelf stock bought ahead of sales: inventory financing.
- Buying an operating business, or a remodel that pays back over years: a term loan.
- Card-heavy sales and an urgent expense: compare a merchant cash advance with the others on total dollars, keeping in mind it is not a loan.
Industry notes for Curry County, NM trades are on the industry pages.
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