This page sets the six funding types Canyonmoor Lending Group handles for Montrose, Colorado businesses next to each other: term loans, lines of credit, equipment financing, working capital, inventory financing and merchant cash advances. It covers the four families of bank lending, fixed term loans against credit lines, and the trades in Montrose County, CO that use each type.
At a glance
- Employer establishments, Montrose County, CO
1,501 (County Business Patterns 2023)
- Employers under five employees
56.8% (County Business Patterns 2023)
- Businesses without paid employees
4,802 (Nonemployer Statistics 2024)
What Are the Four Types of Business Loans a Bank Offers?
Banks and credit unions group their business lending into four families. A term loan pays out once for a named purpose and is paid back on a schedule. A line of credit sets a limit to draw on and pay down. An equipment loan is secured by the machine or vehicle it buys. A commercial real estate loan buys or builds property; this site does not arrange those.
| Funding type | What it buys | How the money goes back |
|---|---|---|
| Business term loan | A remodel, a partner buyout, a second location | The same installment each month until a set end date |
| Equipment financing | Skid steers, trucks, lifts, X-ray units, kitchen lines | Fixed payments; the machine secures the loan or stays with the lessor |
| Business line of credit | Wages and payables between customer payments | Interest runs on what is drawn; paying down frees the limit again |
| Working capital | A single gap: a slow quarter, a big order, a repair | Short schedule, sometimes weekly or daily debits |
| Inventory financing | Lumber, parts or shelf goods bought ahead of sales | Settled as goods sell, or on a calendar |
| Merchant cash advance | Any need, paid for with future card sales | A share of card receipts is collected until an agreed total is reached; not a loan |
Fixed Term Loan vs Line of Credit for a Contractor or Supply Yard
A fixed term loan suits a cost that happens once: the whole sum arrives on day one and interest runs on all of it. A line of credit suits costs that come and go, because interest runs only on what is drawn. Illustration only, invented figures: a $75,000 term loan at an invented 11% over 60 months costs about $1,631 a month and about $22,841 in interest across the term (our arithmetic).
In the same invented case, a line with a $75,000 limit that averages $25,000 drawn charges interest on that $25,000 only, yet lines carry their own price per dollar and sometimes an annual or draw fee. Compare the two on the business's real pattern of spending, in total dollars, before choosing.
Small Business Loan vs Line of Credit: A Checklist Before Choosing
- Is the need a single purchase with a price, or a gap that returns every month?
- Will the item outlast the payments? If yes, a term or equipment loan fits its life.
- Can the business carry a fixed payment through its weakest month?
- Would an annual line fee or a draw fee cost more than the interest saved?
- Is any existing loan, lease or advance still coming out of the same account?
Types of Commercial Loans for Montrose, CO Plumbers, Electricians and Finish Crews
Specialty trades buy vans, tools and materials before a job pays, then wait on the general contractor's draw. In Montrose County, CO, building finishing contractors counted 38 employer establishments in 2023, plumbing, heating and air-conditioning contractors 39 and electrical contractors 26 (County Business Patterns 2023). For a trade crew, the van is an equipment loan, the wage gap is a line of credit, and buying out a retiring partner is a term loan.
Three different funding types for one small firm is normal, and partners read each request on its own purpose. The contractor page covers draws, retainage and machines, and the permits and zoning guide covers the steps before a financed build-out.
How Many Types of Business Loans Sit Outside the Bank Families?
Three more forms fill specific gaps. Working capital from specialty funders covers a short gap and leans on bank deposits more than tax returns. Inventory financing lends against stock, sometimes with the goods pledged. A merchant cash advance is not a loan at all: a provider buys a slice of future card sales and collects it as those sales settle, with no interest rate and no fixed term.
Counted by product, that makes seven with commercial real estate and six on this site. Counted by structure, there are only two: money paid back on a schedule whatever sales do, and money collected as a share of sales. Every offer belongs to one of those two, and the second has no set end date.
Types of Business Loans From Banks Next to Specialty Funders
Finance and insurance counted 58 employer establishments in Montrose County, CO in 2023 (County Business Patterns 2023), a figure that also covers insurance agencies and investment offices. Banks and credit unions price on full financial statements and returns; specialty funders read deposits and can work from a shorter history at a wider range of prices. Equipment funders and dealer finance programs take the machine itself as security.
Whichever kind of funder reviews a request, the same items carry it: deposits, credit, time in business, the purpose and, for secured products, the collateral. How a request moves sets out the order, and the collateral worksheet shows how a partner can value equipment, receivables and stock.
Before choosing, read what banks look for in a business loan; it lists the records behind every type on this page.
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