Brookmark Financial in Sterling, Colorado lays out six funding types by what each pays for and how each is paid back or collected.
Is equipment financing a loan? A Sterling, CO insurance agency answer
Yes. Equipment financing is a loan, or a lease, secured by the equipment it buys. For an insurance agency, that might be computers, phone systems or a vehicle; the equipment itself backs the debt, which can make the request simpler to price than an unsecured loan.
Read more on equipment financing, including used machines and $1 buyout leases.
What a merchant cash advance is, and why Sterling, CO contractors should compare it
A merchant cash advance is a purchase of part of a business's future card sales, not a loan. The provider collects a share of each card settlement until it reaches a total set by a factor rate. Contractors should compare it with a line of credit or working capital because a contractor paid by check or transfer gets little from a card-sales advance, and the total cost of an advance can be high.
The merchant cash advance page works through a factor rate example.
Secured vs unsecured business loans for Sterling, CO restaurants
A secured loan is backed by collateral, such as equipment, inventory, receivables or property, that the lender can claim if the loan is not repaid. An unsecured loan has no specific collateral but often requires a personal guarantee from the owner. For a restaurant, equipment financing is secured by the kitchen equipment; a short working capital loan may be unsecured.
A partner may price a secured loan differently from an unsecured one because collateral backs it, and the pledged asset is at risk if payments stop. Read the security clause and any personal guarantee in an offer.
Types of commercial loans Sterling, CO insurance agencies compare
Commercial loans come in the same broad types: term loans for one-time purchases, lines of credit for repeat costs, equipment loans and leases for machines, and inventory financing for stock. Commercial real estate loans are a separate category handled by banks and mortgage lenders and are not covered here.
The 2023 County Business Patterns list 12 insurance agencies (NAICS 524210) with paid employees in Logan County, CO.
What a business term loan is, for Sterling, CO practices and contractors
A business term loan is a fixed amount paid out at once and repaid in set installments over a set number of months. For a practice or a contractor, it can pay for a shop building, an office remodel or the purchase of a retiring owner's business.
The term loans page has a worked payment example.
What is a business line of credit for Logan County, CO retailers?
A business line of credit gives a retailer a revolving limit. A retailer draws what it needs for stock or repairs, pays interest on the drawn amount, and draws again as it repays. It suits costs that repeat through the year rather than one purchase.
See business lines of credit for limits, draw periods and renewals.
Six Brookmark funding types side by side for a Logan County, CO purchase
| Funding type | Pays for | Paid back or collected |
|---|---|---|
| Working capital | Payroll, bills, short gaps | Fixed payments over months |
| Term loan | A business purchase, remodel, expansion | Fixed installments over years |
| Line of credit | Repeat costs, supplies, repairs | Payments on the drawn balance |
| Inventory financing | Stock bought ahead of sales | Repaid as the goods sell |
| Equipment financing | Machines, vehicles, fixtures | Installments; the machine is security |
| Merchant cash advance | Short needs tied to card sales | Collected from card sales; not a loan |
Retail trade had 89 and construction 44 employer establishments in Logan County, CO in 2023 (County Business Patterns). Both have trade pages: retail and construction.
By Brookmark Financial ยท Updated