Secured: Accounts Receivable – Accounts receivable serve as collateral for a business loan.

Secured: Equipment – Equipment serves as collateral for a business loan.

Secured: Inventory – Inventory serves as collateral for a business loan.

Bundled AR/Inventory – A combination of accounts receivable AND inventory serve as collateral for a business loan.

Bundled AR/Inventory/Equipment – A combination of accounts receivable AND inventory AND equipment serve as collateral for a business loan.

Factoring – Accounts receivable are sold at a discount to a factoring firm.

Line of Credit – Also known as revolving line of credit. Usually only available to established companies, a lender agrees to loan a specific amount of money for a specified amount of time, usually a year and allows the borrower to borrow the money again once it has been repaid.

SBA Loan – (Small Business Administration) Loan made by a local bank that is guaranteed by the U.S. Small Business Administration. If the borrower defaults on the loan, the SBA will reimburse the bank for a percentage of the loss. The borrower is typically expected to provide 20-30% of the total project cost.

Term Loan – A loan which is re-paid in fixed payments, usually over a 2- to 5-year period. Can be fully amortizing or interest only with a balloon payment at the end of the term.