Rowanwood Lenders, a small-business funding broker in Santa Fe, New Mexico, sets six options side by side on this page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances. Each is sorted by how it is repaid or collected, what it fits, and what lending partners review. The credit call belongs to whichever partner reviews the file.
All six, one grid
| Option | How it leaves your account | Usual purpose | What partners tend to examine |
|---|---|---|---|
| Working capital | Fixed debits over a short schedule | Payroll, supplier invoices, tax payments | Bank deposits, time in operation, current debt |
| Term loan | Scheduled installments until the balance is zero | Remodels, expansions, paying off older debt | Cash flow, credit history, the purpose |
| Line of credit | Interest on the drawn balance; repaid and drawn again | Recurring orders and uneven timing | Deposit history, credit, existing limits |
| Inventory financing | Cleared item by item as stock sells, or on a calendar | Stock bought before shoppers arrive | Turnover, supplier invoices, the goods themselves |
| Equipment financing | Installments secured by the equipment | Chairs, ovens, loaders, registers | Quote, the asset's useful life, cash flow |
| Merchant cash advance (a receivables sale, not a loan) | A share of receipts or fixed debits until the purchased amount is collected | Urgent needs with heavy card sales | Card and bank receipts |
Each row has its own page: working capital, term loans, lines of credit, inventory financing, equipment financing and merchant cash advances.
Months or years: the first sort
The quickest sort is by horizon. Working capital and most lines of credit cover needs that resolve within months: a payroll gap, a supplier order, a tax payment. Term loans and equipment financing stretch across years, which suits an asset or a remodel that keeps earning long after the money is spent.
Mismatches are where owners get into trouble. Paying for a three-year remodel with a six-month product forces large payments out of normal revenue. Carrying a short gap on a five-year loan means paying interest long after the gap closed. Matching the horizon of the money to the life of the expense is the first thing we talk through on a call.
Collateral, liens and unsecured offers
Owners often ask what can be used as collateral. In practice partners look at equipment being financed, inventory, receivables, and sometimes real estate or cash. Equipment and inventory financing are usually secured by the item or goods themselves, which is why those products can be easier to structure for a newer business. Working capital and lines of credit may be secured by a general lien on business assets or offered unsecured with a personal-guarantee clause; terms vary by partner.
Do you always need collateral? Not always, but unsecured offers lean harder on deposit history and credit. Whenever collateral is involved, the partner may record a UCC financing statement with the state, which later partners will see. We look for existing filings before a request goes out.
Where SBA programs and state programs fit
SBA-backed lending is outside Rowanwood's work; it neither makes nor arranges those loans. Owners in New Mexico also search for 'new mexico finance authority' and 'new mexico small business development center'; those are separate public bodies we are not affiliated with, and our New Mexico readiness checklist explains how to prepare before contacting any of them.
A common first stop is state registration. Partners routinely confirm that the business entity is active and that its tax registration matches the name on the bank account, so a mismatch there is worth fixing before choosing any row in the table above.
How to read an offer from any row
Compare offers on total cost and payment rhythm together. A term loan quotes an annual percentage rate; a merchant cash advance quotes a factor rate that is not an interest rate at all. Convert each to the total dollars you will pay back and the size and frequency of each payment, and the comparison becomes honest.
- Total repaid or remitted, in dollars
- Payment amount and frequency (daily, weekly, monthly)
- Any prepayment terms and whether early payoff saves money
- Collateral, liens and guarantees attached
- Whether the partner reports to business credit bureaus
By Rowanwood Lenders · Updated
