Larkridge Funding Group, a small-business funding broker in Decatur, Illinois, compares six options for Macon County owners: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. This page shows how each is repaid, what it suits and what partners review. Lending partners make credit decisions and set rates and terms.
Six options and how each is paid back
| Option | How the money comes back | Usually suits | Partners tend to look at |
|---|---|---|---|
| Working capital | Equal installments across a few months | Payroll, rent and supplier bills while receivables catch up | Bank statements, deposit history, existing debts |
| Term loan | Installments spread across years | Remodels, relocations, buyouts, larger one-time costs | Statements, returns, cash flow and any collateral |
| Line of credit | Pay back each draw and the room returns | Recurring, uneven expenses | Revenue consistency, credit history, existing obligations |
| Inventory financing | Repaid as stock sells or on a schedule | Merchandise bought ahead of sales | Stock counts, past sales and what suppliers allow |
| Equipment financing | Installments or lease payments | Kitchen equipment, coolers, vehicles, clinical machines | The equipment quote, the item's value, the business's cash flow |
| Merchant cash advance | A share of future card or bank receipts is collected (not a loan) | Businesses whose card or deposit flow is steady | Card processing and bank statements |
Short money or long money
Short-term options, such as working capital, many lines of credit and merchant cash advances, are meant to bridge weeks or months. Long-term options, such as term loans and most equipment financing, are meant for things that keep earning for years. Trouble starts when the two get crossed: paying for a five-year remodel with money due back in nine months squeezes every month in between, while carrying a payroll gap on a five-year loan keeps you paying interest long after the gap has closed.
Secured or unsecured
Secured funding is backed by a specific asset, such as the equipment being bought, the inventory on the shelves or a lien on business assets generally. Unsecured funding has no named collateral, but that rarely means nothing is at stake: many partners still file a general lien or ask the owner to sign a personal guarantee. Ask exactly what is pledged, by whom, and what happens to it if payments stop.
A loan or a business credit card?
A business credit card can cover small, frequent purchases and gives you a grace period if the balance is paid in full each month. Once a balance rolls over, the cost can climb quickly, and card limits are often too small for a remodel or a piece of equipment. For a single, planned purchase, a term loan or equipment financing usually gives a clearer total cost. For recurring bills, a line of credit sits between the two.
Uses partners accept for business funding
Most legitimate business purposes: payroll, stock, equipment, a lease deposit or build-out, refinancing other business debt, or buying a business. Partners usually ask what the money will pay for and whether the use matches the product. Personal expenses, consumer debt and speculative investments fall outside business funding. Paying yourself is a separate question, covered in the FAQ.
Where SBA loans fit
SBA-backed loans are made by banks and other approved lenders, with the U.S. Small Business Administration sharing part of the lender's risk. Owners searching for SBA loans in Illinois usually find that the lender's own requirements apply on top of the program rules. SBA loans are outside Larkridge Funding Group's work: we neither make nor arrange them. For free, independent help with SBA programs, see small business help in Decatur and Macon County.
By Larkridge Funding Group · Updated