Term loan. Line of credit. Equipment financing. If you’ve ever had three different people pitch you three different products and walked away more confused than when you started, you’re not alone — and it’s not your job to already know the alphabet soup of business financing.
The three most common options, in plain English:
- Term loan: A lump sum, paid back over a fixed schedule with set payments. Best when you know exactly how much you need and what you’re using it for — expansion, a big purchase, a one-time investment.
- Line of credit: A flexible pool of available funds you can draw from as needed, only paying interest on what you actually use. Best for ongoing cash flow needs, seasonal gaps, or unpredictable expenses.
- Equipment financing: A loan specifically tied to purchasing equipment, where the equipment itself typically serves as collateral. Best when the need is a specific piece of machinery, a vehicle, or technology.
How to think about which one fits
Ask yourself one question: is this a one-time, known cost, or an ongoing, unpredictable need? One-time and known usually points to a term loan or equipment financing. Ongoing and unpredictable usually points to a line of credit.
- Speed: Whichever fits, we can typically give you a real answer in 24-48 hours.
- Flexibility: We help you match the product to your actual situation — not the other way around.
- Transparency: We’ll explain the tradeoffs in plain language before you commit to anything.
And every deal we fund contributes to Feeding America — clarity that does good beyond your business.
Not sure which one fits your situation? Let’s talk it through together.
Let’s talk it through
No pressure and no pitch. Tell me what you’re working on, and I’ll tell you what’s realistic.
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