This page compares six business funding options for Cabarrus County owners: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances, which are not loans. Oakwick Lending Group, a small-business funding broker in Concord, NC, explains each and introduces requests to lending partners, which decide and set rates and terms.
All six at a glance
| Option | Pays for | Comes back as | Usually secured by |
|---|---|---|---|
| Working capital | Running costs while customer money is in transit | Fixed installments over months | Often unsecured, with a guarantee |
| Term loan | Upfits, expansion, refinancing | Scheduled installments over years | Business assets, sometimes real estate |
| Line of credit | Recurring, uneven costs | Payments on the drawn balance | Receivables or assets, or unsecured |
| Inventory financing | Stock bought before it sells | Installments or paydown as goods sell | The inventory |
| Equipment financing | A named asset: a machine, vehicle or system | Installments or lease payments | The equipment |
| Merchant cash advance | Short needs for card-heavy businesses | Collections from future sales; it is not a loan | Receipts not yet earned, usually plus a guarantee |
These describe typical structures. Each partner designs its own products, so the details in an actual offer may differ.
Short-term or long-term
Funding should outlive the purchase by as little as possible. Payroll and materials are used up within weeks, so funding them over five years means paying interest long after the benefit is gone. A kitchen build-out serves for years, so squeezing its cost into a few months strains cash flow for no reason. Working capital, credit lines and advances sit at the short end; term loans and equipment financing at the long end.
Secured or unsecured
Secured funding is backed by specific collateral, such as equipment, inventory, receivables or property, which the lender can claim on default. Unsecured funding has no specific collateral, but small-business partners nearly always ask for a personal guarantee, and many file a general UCC financing statement anyway. Unsecured does not mean the owner carries no risk. Secured structures usually price lower, because the partner's loss in a default is smaller.
A business loan or a business credit card?
Cards are convenient for small, frequent purchases and can be repaid each month without interest. Carried balances, though, usually cost more than a loan or line, and card limits are rarely large enough for equipment or an upfit. Many owners use a card for day-to-day spending and a line of credit or loan for anything larger.
Typical uses for business funding
- Payroll, rent, utilities and supplier invoices while receivables are outstanding
- Inventory ahead of a busy season
- Equipment, vehicles and technology
- Leasehold improvements, a second location or an acquisition of assets
- Refinancing costlier business debt
Funding generally may not be used for personal, family or household purposes, and many agreements restrict owner distributions. Check the use-of-proceeds clause in any offer.
North Carolina options and where SBA loans fit
Owners searching for business loans in North Carolina will find banks, credit unions, online lenders, SBA-participating lenders and funders of advances. Oakwick Lending Group works with lending partners across the six types above. We do not arrange SBA-backed loans; those come through lenders that participate in SBA programs. Free advisers listed in Cabarrus County small business resources can help you decide whether an SBA route is worth the wait for your project.
Choosing in practice
If you know the purpose but not the product, start there. If you have an offer in hand, compare its total cost and payment calendar with at least one alternative from this table. Census figures on local firms show what the business mix looks like across the county.
By Oakwick Lending Group ยท Updated