Coastglen Financial, a small-business funding service in Pensacola, FL, compares six options in one place: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. The table shows what each pays for, how it is repaid and what partners may review, so owners can see which fits before a partner looks at the file.
All six, column by column
| Option | Pays for | How it is repaid | What partners may review |
|---|---|---|---|
| Working capital | Wages, rent, supplier bills while invoices are out | Set debits over a short stretch, weekly or monthly | Deposit history, trading months, debts already owed |
| Term loans | Buildouts, second sites, buyouts, large one-off costs | Level payments until the term ends | Revenue history, purpose, existing loans, sometimes collateral |
| Line of credit | Lumpy months, job draws, brief shortfalls | Charges only on the balance drawn; repaid room reopens | Bank activity, time in business, credit history |
| Inventory financing | Stock, parts and supplies bought before they sell | Repaid as the goods turn into sales | Stock records, sales history, supplier invoices |
| Equipment financing | Vehicles, machines, kitchen lines, clinical gear | Installments, with the equipment usually securing the deal | Quote or invoice, equipment age, business history |
| Merchant cash advance | An urgent cost for a business with steady card sales | A set share of daily receipts is remitted until the agreed amount is collected; not a loan | Card and bank receipts over recent months |
Partners set their own standards, rates and terms; the last column shows what they may ask about, not a checklist or a promise of anything.
Business loan vs line of credit: lump sum or a limit to draw on
A loan hands you one sum on day one and a schedule that does not change. A line of credit gives you a limit; you draw part of it, pay interest on that part, and the limit frees up again as you repay.
A loan fits a cost you can name and price today: a walk-in cooler, a lease buildout, the purchase of a practice. A line fits costs that come and go: a supplier who wants payment before your client pays you, or a month when sales dip and rent does not.
Owners sometimes take both: a term loan for the one-time project and a smaller line for the weeks around it. Partners may look at the combined payments, so plan them together.
From purpose to product: a routing guide
| If the money is for | Look first at | Why |
|---|---|---|
| Payroll before receivables clear | Working capital | Short horizon, sized to the gap |
| A second location or a remodel | Term loan | One-time cost, predictable schedule |
| Slow months and job-by-job draws | Line of credit | Borrow only what the month needs |
| Stock ahead of sales | Inventory financing | Repayment follows the goods |
| A truck, lift, mower or fryer | Equipment financing | The asset usually secures it |
| An urgent cost with daily card sales | Merchant cash advance | Remitted from receipts; compare total cost carefully |
Records that help in Escambia County, FL
Whatever the option, partners may ask for similar core records: a few months of business bank statements, proof the business is active, and a plain sentence on what the money will pay for. Local paperwork matters too; the county and city business tax receipt guide explains why an up-to-date receipt is worth having on file before you apply.
Escambia County, FL had 7,650 employer establishments in 2023, and 84.8% of them had fewer than 20 employees (U.S. Census Bureau, County Business Patterns 2023).
Where to go next
If you know your trade, the industry pages show how each option can fit it. For the steps after you choose, read how a request moves. For local figures and contacts, see the Pensacola, FL page.
By Coastglen Financial · Updated
