Six funding types are available through this site. Lump-sum loans suit one-time costs, a credit line suits costs that recur, equipment financing is secured by the machine, and a merchant cash advance is collected from card sales and is not a loan.
What is a merchant cash advance? A Robertson County, TN auto repair shop’s card batches, followed day by day
Strictly speaking, a merchant cash advance buys a slice of card sales the shop has not made yet. The provider pays a sum up front and collects a fixed total by holding back a share of each day’s card receipts. It is not a loan: there is no interest rate and no fixed monthly due date, and the collection speeds up or slows down with sales.
Illustration only, invented figures: an auto repair shop signs for $15,200 with a 1.26 factor, which fixes the amount the provider will collect at $19,152. With a 10% holdback and card sales averaging $1,390 a business day, about $139.00 is collected each day, and the full amount is collected in about 138 business days.
Robertson County, TN counted 33 auto repair and maintenance establishments in 2023 (County Business Patterns, NAICS 8111). For any of them, the cost of an advance is set at signing, so a stronger run of sales shortens the term without lowering the total.
Secured vs unsecured business loans, compared on a second equipment trailer for a Robertson County, TN landscaping company
A secured loan is backed by something the partner can claim if payments stop, here the trailer itself or other business assets. Unsecured means nothing particular is pledged; a personal guarantee from the owner may still be part of an offer. Because the partner carries more risk without collateral, an unsecured offer to a landscaping company can cost more.
Illustration only, invented figures: a $9,800 trailer over 36 months costs $315.76 a month at 9.9% secured ($1,567.36 of interest) and $342.12 a month at 15.5% unsecured ($2,516.32 of interest). The unsecured version costs $948.96 more over the term but leaves the trailer without a lien.
Types of commercial loans, set against the cost of a second Robertson County, TN install crew
Adding a crew creates several costs at once, and each can go to a different product rather than one large loan.
- The crew van and trailer: equipment financing, secured by the vehicles.
- Tools, ladders and testers: equipment financing or a small term loan.
- The first weeks of wages before the crew’s jobs pay: a working capital loan or a credit-line draw.
- Materials stocked for the new crew’s jobs: inventory financing or a credit line.
Splitting the costs keeps each payment matched to how long the thing it bought lasts. A van paid over five years and six weeks of wages paid over a few months are two different jobs for money.
Worked examples for three of them: the working capital page carries a net-30 landscaping gap, the term loan page a skid steer schedule, and the line of credit page a liability premium paid down over four months. How the six types line up with Robertson County, TN trades is set out on the industries page.
Fixed term loan payments on a Robertson County, TN auto shop’s wheel alignment system
A business term loan pays one lump sum that the business pays back in equal installments over a fixed term, often one to seven years, though each partner sets its own range. It suits a single, priced purchase.
Illustration only, invented figures: an alignment system priced at $38,900 over 60 months at an annual rate of 9.6% runs $818.87 each month, $49,132.20 in all, so $10,232.20 is interest. Anchoring the rack or running new power to it is property work outside this site; the auto shop’s loan covers the machine.
A business line of credit drawn and paid down on lumber orders at a Robertson County, TN home builder
A business line of credit is a limit a partner sets that the business draws against as costs come up. Interest runs only on what is drawn, and each paydown frees that amount to draw again.
Illustration only, invented figures: a builder with a $40,000 limit draws $17,300 for a framing lumber package and pays it back 38 days later when the client’s progress payment arrives. At an annual rate of 11.9%, counted over 365 days, the draw runs up about $214.33 of interest. Robertson County, TN had 49 residential building construction establishments in 2023 (County Business Patterns, NAICS 2361); construction loans for the houses themselves are outside this site.
Equipment contracts compared on exam tables for a Springfield, TN physician office
It can be. An equipment finance agreement works like a loan: the office owns the tables and pays installments, and the partner holds a security interest until the end. A lease is not a loan: the lessor owns the tables, and the office pays for their use and may buy them at the end for a set or fair market price.
Illustration only, invented figures: $11,640 of exam tables on a 36-month agreement at 9.1% comes to $370.69 a month and $13,344.84 over the term. The office can then compare that total with any lease offer’s payments plus its buyout.
By Swiftpine Loans · Updated