For Minot, ND owners, Heathbend Credit sets six business funding options next to each other: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. The page explains how each is repaid, what it suits and what funding partners commonly review.
| Options compared | 6 |
|---|---|
| Ward County, ND employers | 2,043 (CBP 2023) |
| Under five employees | 51.2% (CBP 2023) |
| Who decides | The funding partner |
Six Ways to Fund a Business, Lined Up
| Option | How it is repaid | Usually suits |
|---|---|---|
| Working capital | Equal payments over months rather than years | Wages, supplier bills, a gap between job completion and payment |
| Term loan | Fixed payments over a longer term | Remodels, a second location, buying a practice or agency |
| Line of credit | Billed only on what has been drawn; the limit refills as you repay | Recurring dips, payables that land before receivables |
| Inventory financing | Repaid as the stock sells, often secured by it | Clothing racks, parts rooms, convenience-store shelves |
| Equipment financing | Loan or lease payments over the machine's working life | Service trucks, lifts, kitchen lines, dental chairs, oilfield units |
| Merchant cash advance | A share of future card or bank receipts until a fixed total is remitted | Card-heavy businesses with a short gap; not a loan |
A funding partner sets the actual structure and pricing of anything it offers. The descriptions above are how these products commonly work, not a promise about any one offer.
The Four Types of Business Loans, and the Two Lists Leave Out
One way to list business loan types gives four entries: term loans, lines of credit, equipment loans and working capital loans. That list is a reasonable start. Inventory financing is a fifth that matters to any business holding stock, and a merchant cash advance is often lumped in although it is a purchase of receivables rather than a loan.
The useful split is not between product names but between purposes. Money that pays this month's bills should be repaid from this quarter's revenue. Money that buys something lasting ten years can be repaid more slowly. Mixing the two, such as paying for a loader with a short advance, can squeeze an owner.
Match the Money to Its Purpose
Payroll and payables
Covering wages while invoices are out is the classic job for working capital; a revolving line of credit does the same job when the gap repeats.
Inventory purchases
Stock bought before it sells, from boutique racks to fuel tanks, fits inventory financing, which is often secured by the goods themselves.
Used, restaurant and contractor equipment
Machines with a resale value suit equipment financing; the item usually serves as collateral, and used units can be financed.
Seasonal or uneven months
Where income rises and falls through the year, a line of credit lets you draw only in the lean stretch.
Expansion or a second location
A build-out, a remodel or a second storefront has a long payoff, which points to a term loan.
Secured or Unsecured: What Backs the Money
A secured loan is backed by something the lender can claim if payments stop: the equipment being bought, inventory, receivables or real estate. Unsecured funding has no specific collateral, though partners may ask for a personal guarantee from the owner instead.
Common types of collateral for business loans include titled vehicles and equipment, stock on hand, accounts receivable and commercial property. Equipment and inventory financing are usually secured by the asset they buy, which is one reason they can suit newer businesses with something tangible to show.
Getting a Small Business Loan Request Ready
- Write down what the money is for and the date it is needed.
- Pull recent business bank statements and your latest business tax return.
- Gather quotes or invoices for anything specific you plan to buy.
- Check that your business name matches across the bank account, tax records and any trade name filing.
- Call us or send the online request; we narrow the options before any partner sees the file.
The industry pages describe how this plays out for contractors, restaurants, clinics, shops and agencies in Ward County, ND.
By Heathbend Credit · Updated
