Each suits a different kind of cost, and a funding partner reviews every request and decides on any offer.
Six products, one question: what kind of cost is it? This page runs a repair invoice through each, then works invented cases for an ultrasound unit, an HVAC parts order, a laser therapy unit and a card-sales advance, and ends with how far a lien can reach.
Commercial loan types laid against one repair invoice in Angleton, TX
Take one invented bill: a CNC spindle repair at an Angleton, TX machine shop, invoiced at the end of the month. Run it past each product on this site and the differences show: some pay it directly, and two would only fit if the bill were for something else.
| Product | How it pays the invoice | What decides the cost |
|---|---|---|
| Working capital loan | A lump sum repaid over a short schedule | Rate, term and how often payments come out |
| Term loan | A lump sum repaid in fixed monthly payments | Rate and number of months |
| Line of credit | A draw against a limit, repaid as cash comes in | Rate on the drawn balance and how long it stays out |
| Inventory financing | Only fits if the bill is for stock, not a repair | Not a match for this invoice |
| Equipment financing | Fits a replacement spindle or machine rather than a repair | The machine, its price and its term |
| Merchant cash advance | Cash now, collected from future card sales | Its factor, plus the cut of each day's card sales |
A repair keeps the business running, so it sits with working capital or a credit line; a new machine belongs with equipment financing.
The business term loan in plain terms, using a physician office's ultrasound unit in Angleton, TX
Picture the term loan as a single deposit followed by a countdown of identical monthly installments. The rate is set in the offer, and every payment mixes interest with principal until the balance reaches zero.
In this invented example, an Angleton, TX physician office borrows $58,600 for a point-of-care ultrasound unit over 48 months at a 10.35% annual rate. The ultrasound unit's invented installment lands at $1,496.12, and over 48 months the office hands back $71,813.76, $13,213.76 of it interest.
Brazoria County, TX had 247 offices of physicians with a payroll in 2023, and 158 of them employed fewer than five people (County Business Patterns, NAICS 6211). The term loan page compares schedules of different lengths.
A business line of credit sized to an Angleton, TX HVAC contractor's refrigerant and parts order
Think of a business line of credit as a ceiling: the contractor borrows under it, pays back, and borrows under it once more. Interest runs only on the part that is drawn, so the size of the limit matters less than how long each draw stays out.
In this invented example, an Angleton, TX HVAC contractor draws $11,935 from a line at 13.6% a year for an order of refrigerant, capacitors and condenser fan motors, and pays it down in three monthly amounts of about $3,978.33. The invented interest comes to $135.26, $90.18 and $45.09, or $270.53 in all, and the limit is open again once the draw is repaid.
Plumbing, heating and air-conditioning contractors numbered 115 in Brazoria County, TX in 2023, with 1,275 employees on their payrolls (County Business Patterns, NAICS 238220).
Laser therapy units in Angleton, TX: where equipment financing sits among loans
Equipment financing can be written two ways. An equipment loan lends money to buy the unit, and the unit secures the loan. An equipment finance agreement works like a loan in its payments but is written as a financing contract for the equipment itself. Both put a fixed payment on the books until the term ends.
In this invented example, an Angleton, TX chiropractic office finances a $27,315 Class IV laser therapy unit for 36 months at an 11.15% annual rate. Monthly, the invented laser costs $896.20; across the term it reaches $32,263.20, with $4,948.20 of that going to interest.
A laser office does not have to carry staff to need equipment: Nonemployer Statistics counted 778 offices of other health practitioners without paid employees in Brazoria County, TX in 2024 (NAICS 6213).
Card sales sold forward: the merchant cash advance beside a produce order in Angleton, TX
No loan is involved in a merchant cash advance: a provider buys part of the business's future card sales for a set price, pays cash now, and collects an agreed share of each day's card sales until the purchased amount is in.
In this invented example, a restaurant takes a $13,240 advance at a 1.23 factor to cover a large produce order. The provider will collect $16,285.20 in all in this invented case, which puts the price of the advance at $3,045.20. With an 8% holdback and $1,380 of invented daily card sales, $110.40 goes to the provider each business day, and collection runs about 148 business days.
When card sales dip, the daily amount dips with them and the collection takes longer, but the total collected does not change.
One machine or everything the business owns: how far a lien can reach in Angleton, TX
An offer may come with a lien, a legal claim the funding partner files against business assets until the balance is paid. What matters for an owner is how far that claim reaches.
- A lien on one item: the financed machine or vehicle, and nothing else
- A blanket lien: every business asset, from receivables to equipment, can stand behind the balance
- A personal guarantee: a promise from the owner that reaches past the business itself
- No collateral named: the offer rests on revenue and credit, and the price may reflect that
Reading which of these an offer uses is worth the time before signing, because a blanket lien can affect what other funding the business can take on later.
By Millreach Lending Group ยท Updated
