"I need funding" is rarely specific enough. The right product depends on what the money is for, how fast you need it, how you'll repay it, and how long the need lasts. Working capital advances, business lines of credit, and term loans each solve a different problem — and choosing the wrong one can cost you in rate, flexibility, or cash flow.
Here's a plain-language comparison of the three most common structures and the situations each is built to handle.
Working Capital — Speed and Short-Term Gaps
Fast access to cash for immediate, short-duration needs — usually repaid quickly from daily or weekly sales.
- Best for inventory buys, payroll gaps, or seizing a time-sensitive opportunity
- Funding can land in as little as 24–48 hours
- Repayment is often tied to a percentage of daily/weekly revenue, so it flexes with sales
- Higher effective cost — designed for short-term use, not long holds
Business Line of Credit — Flexible, Reusable Access
A revolving credit limit you draw from as needed and only pay interest on what you use.
- Ideal for recurring cash-flow gaps, seasonal swings, and unexpected expenses
- Revolving access up to $250k+ — pay it down and the credit becomes available again
- You only pay interest on the drawn balance, not the full limit
- Requires stronger credit and financials to qualify for the best terms
Term Loan — Predictable, Larger, Longer-Term
A lump sum repaid in fixed installments over a set term — built for defined, larger investments.
- Best for expansion, equipment, real estate, or other multi-year investments
- Fixed rates and fixed payments make budgeting predictable
- Funding amounts up to $500,000+ with terms spanning several years
- Lower per-payment cost than working capital, but less day-to-day flexibility
How to Choose
Ask three questions: How fast do I need it? (working capital wins on speed), Will I need it more than once? (a line of credit flexes with you), and How long will it take to pay back? (term loans suit longer horizons). The right answer is often a combination — a line for flexibility plus a term loan for a defined project.
Legacy 1108 helps owners compare these structures side by side and match each need to the product built for it.