Mesaside Advances, a small-business funding broker in Cheyenne, Wyoming, compares six funding types for Laramie County owners: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each is paid back or collected differently. Merchant cash advances are not loans. Lending partners make every credit decision and set rates and terms.
All six in one table
| Funding type | Pays for | How the money goes back | Often secured by |
|---|---|---|---|
| Working capital | Payroll, rent, supplier bills during a cash gap | Scheduled payments over a short term | Business assets or a personal guarantee, depending on the partner |
| Term loan | A project with a known price | Fixed installments of principal and interest | Business assets, sometimes real estate |
| Line of credit | Recurring, uneven costs | Interest on what is drawn; balance paid down and reused | Receivables, other assets, or unsecured |
| Inventory financing | Stock bought before it sells | Paid down as the goods sell, or on a schedule | The inventory itself |
| Equipment financing | A specific machine, vehicle or system | Monthly loan or lease payments | The equipment |
| Merchant cash advance (not a loan) | Short-term needs, for businesses with steady card or bank receipts | Collected as a share of receipts or fixed debits until a set total is delivered | Future receivables, often with a performance guarantee |
Short-term money or long-term money?
Match the length of the funding to the life of what it buys. Money for a gap that closes in weeks belongs in short-term funding such as working capital or a credit line; money for a walk-in cooler, a dental chair or a build-out that will earn for years fits a term loan or equipment financing. Paying for a long-lived asset with short-term money squeezes cash flow; paying for a short gap with a five-year loan means interest long after the gap has closed.
Secured, unsecured, and what a personal guarantee adds
Secured funding gives the partner a claim on something specific, such as the equipment, the inventory or the receivables, and the claim is usually recorded with a UCC financing statement. Unsecured funding has no single asset behind it, which tends to mean closer review of the business's revenue and credit. Many partners also ask owners to sign a personal guarantee, secured or not. Read what the guarantee covers before you sign it.
Where SBA loans fit
SBA loans are made by banks and other lenders, with a partial guarantee from the U.S. Small Business Administration. Mesaside Advances is not an SBA lender and does not arrange SBA loans. If an SBA loan suits your project, the SBA's Wyoming District Office, which describes itself as serving all 23 counties in Wyoming (sba.gov/district/wyoming, accessed 2026-10-15), is the place to start. For Wyoming-specific preparation, see the Wyoming loan prep list.
Business loan or business credit card?
A business credit card is a revolving line with a card attached, convenient for small, frequent purchases and often priced higher than a line of credit for larger balances carried over months. A loan or line generally suits larger, planned costs. Many owners use both; the question is which balance you expect to carry, and for how long.
Four questions that narrow the choice
- What exactly will the money pay for, and what does it cost?
- When does that spending turn back into revenue: weeks, months or years?
- Is the need one-time, or will it come back?
- What could secure it: equipment, stock, receivables, or nothing specific?
What partners commonly ask to see
Lists differ, but most partners start with recent business bank statements, the entity's formation records, and identification for the owners. Larger or longer requests often add tax returns, a profit-and-loss statement and balance sheet, a schedule of existing debts, and a quote or invoice for what is being bought. Having these ready shortens the back-and-forth; it does not decide the outcome.
Choosing with a broker
Our part is to make sure the request goes out as the right type, to partners that offer it, and that you can read any offer in dollars. How a request moves explains the steps.
By Mesaside Advances · Updated
