Mossdale Lending Group, a small-business funding broker in Pasco, Washington, puts six options on one page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each row shows how repayment works, what the money usually pays for and what lending partners review. Approval and price both sit with the partner.
| Options compared | Six, from term loans to merchant cash advances |
|---|---|
| Sorted by | How repayment works |
| Not a loan | Merchant cash advance (a sale of future receipts) |
| SBA lending | Not arranged by Mossdale Lending Group |
| Who decides | The lending partner |
| Franklin County, WA employers | 1,968 establishments (CBP 2023) |
Six ways to pay for a cost, compared
| Option | How it is repaid | Typical use | Records a partner usually wants |
|---|---|---|---|
| Working capital | Fixed payments for a few months | Wages, materials invoices, a tax payment | How steady recent deposits look |
| Term loan | Equal payments on a calendar until it reaches zero | Remodels, moves, a second site | Operating history, cash flow, current debt |
| Line of credit | Interest on what is drawn; repaid room can be reused | Repeating gaps between costs and collections | Deposits, unpaid invoices, credit file |
| Inventory financing | Payments tied to the stock financed | Stock purchased ahead of sales | Turnover, supplier invoices, the stock as collateral |
| Equipment financing | Installments, or monthly lease rent | Excavators, ovens, chairs, shelving | The asset, its age, the vendor quote |
| Merchant cash advance | A share of upcoming receipts (not a loan) | Card-heavy sales and a near-term cost | Card and bank deposit history |
Matching the term to the life of the purchase
A useful rule: the repayment period should not outlast the thing it paid for, and it should not be much shorter either. Working capital and most merchant cash advances suit costs that turn back into cash within weeks or months. A term loan or equipment financing spreads the cost across the years a remodel or a machine keeps earning.
Mismatches cost money both ways. Paying for a two-week wage gap over several years adds interest you did not need. Squeezing a storefront build-out into a short schedule takes cash out of every month that follows. A line of credit sits between the two: it can stay open for years, yet each draw is meant to be paid down as the matching revenue arrives.
Pledged assets, unpledged deals and the owner's personal signature
Secured funding names collateral, such as the excavator being financed, the inventory on the shelves or a general lien on business assets recorded with a UCC filing. Unsecured funding names none, so the partner relies more on cash flow and credit history. Many partners also ask the owner to sign a personal guarantee either way; read that clause before anything else.
Collateral changes what a partner asks for, not whether you should borrow. Ask yourself what happens to the pledged asset if sales dip for a quarter, and whether your business could still operate without it.
Where SBA lending fits
SBA-backed loans are made by participating lenders under a federal program. Mossdale Lending Group does not arrange SBA loans and has no affiliation with the SBA. If an SBA-backed loan suits your plan, free advisors can explain the program; the Tri-Cities resources guide notes where owners start looking.
Records that make any comparison easier
Whichever option you lean toward, a partner will want the business on paper to match the business in the bank. That means the legal name on your entity filing, the name on your business bank account and the name on your city license all lining up. Our guide to Washington entity status explains how to check yours before a partner does.
For Franklin County context behind these options, see local figures and contacts. For the step-by-step path from a call to a partner's answer, read how a request moves.
By Mossdale Lending Group · Updated