Business Capital Education

How business funding works.

Name: Cadenhead Legacy Center
Address: 5784 Chumuckla Hwy, Pace, FL, 32571, US

Understand common financing structures, repayment methods and tradeoffs before you compare an offer.

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Cadenhead Legacy Group is not a lender and does not make credit decisions. Financing is offered, approved and contracted by independent banks, lenders or funding providers on their own terms. This is a conversation request — no financial information is collected through this website.

Common financing structures

The product name is only the beginning.

Availability, pricing and requirements vary by provider and business. Compare how money is delivered, how repayment works, what secures the obligation, the total cost and what happens if sales slow down.

At a glance

How common structures differ.

General characteristics only. Terms vary by provider and agreement. Scroll sideways to compare.

Comparison of common business financing structures
Structure	Often used for	Repayment pattern	Usually secured by	Paperwork	Watch for
Term loan	Defined investments	Scheduled payments	Varies by agreement	Business and financial records	Total cost and prepayment terms
Line of credit	Changing or seasonal needs	Based on amount used	Varies; a UCC filing may apply	Business and cash-flow records	Draw fees, renewal terms and ongoing use
Equipment financing or lease	Durable business equipment	Scheduled payments	The equipment or lease rights	Equipment quote and business records	Ownership, end-of-term and early-payoff terms
SBA loan program	Several business purposes, depending on the program	Varies by program and the applicable lender or intermediary	Varies by program; personal guarantees are common	More extensive business, owner and program records	Documentation, review time and program eligibility
Working capital	Day-to-day operating gaps	Depends on the structure used	Varies by structure	Bank statements and a cash-flow view	Total cost for the time used and repeat renewals
Bridge funding	A defined, temporary transition	Often shorter and more concentrated	Varies by agreement	Records showing the expected repayment event	Cost and risk if the repayment event is delayed
Receivables or purchase-order financing	Timing gaps tied to invoices or orders	Connected to collection or completion	Eligible invoices, receivables or orders	Customer, supplier and transaction records	Fees, customer contact and concentration
Business acquisition financing	Buying an operating business	Structured around the acquired business's cash flow	Varies; business assets and guarantees are common	Purchase documents, valuation and financial history	Quality of the business, equity required and transition risk
Merchant cash advance	Short-duration operating need	Often daily or weekly	Future sales or receivables under the agreement	Sales and deposit history	Total repayment, reconciliation and cash-flow pressure

01 · Business line of credit

Reusable access for changing needs.

A business line of credit sets a borrowing limit. The business draws only what it needs, repays it and can draw again while the line remains open.

How it generally works: Funds are drawn against the limit as needs arise. Cost usually applies to the amount drawn, and the line is reviewed or renewed on a schedule set by the provider.
Common business uses: Seasonal inventory, uneven receivables, payroll timing and short gaps between paying costs and collecting revenue.
Typical repayment structure: Payments depend on the balance in use and the agreement. Some lines require periodic paydowns or a full renewal review.
What owners are commonly asked to prepare: Recent business bank statements, financial statements, tax returns, a list of existing debts and a clear explanation of how the line will be used.
Costs and tradeoffs to understand: Interest on the balance, plus possible draw, maintenance, renewal or unused-line fees. A line used as permanent funding can become expensive and hard to reduce.
When another structure may fit better: A one-time purchase with a long useful life, such as equipment or a build-out, may fit term or equipment financing better.
Questions to ask before moving forward: What fees apply when the line is opened, used, renewed or left unused?
Can the provider reduce or close the line, and with what notice?
Is a periodic paydown required?
What secures the line, and is a personal guarantee required?

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02 · Term loan

One amount, repaid over a defined period.

Term financing provides a lump sum that is repaid on a set schedule over an agreed period.

How it generally works: The business receives the funds at closing and repays them in scheduled installments. The term, payment amount and total cost are set in the agreement.
Common business uses: A defined investment with a cost and useful life that can be estimated: expansion, a build-out in leased space, equipment or a business improvement.
Typical repayment structure: Usually fixed or scheduled installments, often monthly, until the balance is repaid.
What owners are commonly asked to prepare: Business and personal financial statements, tax returns, bank statements, a debt schedule, the purpose and amount, and quotes or a plan showing how the funds will be used.
Costs and tradeoffs to understand: Interest and any origination or closing fees. A longer term can lower each payment while raising the total cost. Ask about prepayment charges.
When another structure may fit better: Needs that rise and fall during the year may fit a line of credit. A purchase tied to one asset may fit equipment financing.
Questions to ask before moving forward: What is the total amount expected to be repaid?
Is the rate fixed or variable?
Is there a charge for paying early?
What collateral or guarantees are required?

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03 · SBA options

Programs supported by the U.S. Small Business Administration.

SBA business loan programs include 7(a), 504 and Microloan options. Participating lenders make 7(a) loans with an SBA guarantee. Certified Development Companies arrange 504 financing in collaboration with a senior lender. Authorized nonprofit intermediaries make Microloans using SBA program funding. Each program has its own eligible uses, requirements, fees and application process. The applicable lender or intermediary evaluates the business under its standards and the program’s requirements. Personal guarantees are common, and collateral requirements vary by program and transaction. Use SBA.gov for current program information and limits.

Common business uses: Eligible uses vary by program and the applicable lender or intermediary.
Typical repayment structure: Set by the loan and program structure, typically scheduled installments over the program's allowed term.
What owners are commonly asked to prepare: More extensive business and owner records than many other structures: financial statements, tax returns, a debt schedule, ownership information, a business plan or projections, and program forms.
When another structure may fit better: A short, urgent need may not fit an SBA process. A simple equipment purchase may be handled more directly through equipment financing.
Questions to ask before moving forward: Which SBA program applies, and why?
What program fees and guarantees apply?
What collateral is required?
Which documents will the lender or intermediary need, and in what order?

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04 · Equipment financing

Own the asset, pay for it over its working life.

Equipment financing helps a business buy an asset, such as a vehicle, machine or kitchen line, and repay it over time. The equipment usually serves as collateral.

How it generally works: The provider pays the vendor, the business takes ownership of the equipment, and the provider typically holds a lien until the balance is repaid.
Common business uses: Vehicles, machinery, restaurant equipment, technology and other durable business assets the business intends to keep.
Typical repayment structure: Scheduled payments over a term usually related to the equipment's useful life.
What owners are commonly asked to prepare: The equipment quote or invoice, vendor information, business financial records and how the equipment will produce or protect revenue.
Costs and tradeoffs to understand: Interest, any documentation fees and insurance requirements. A down payment may be expected. The lien stays until the balance is paid.
When another structure may fit better: Equipment that becomes outdated quickly may fit a lease better. Short-lived or low-value items may be better paid from cash flow or a line of credit.
Questions to ask before moving forward: Is a down payment required?
What is the total amount expected to be repaid?
What insurance must be carried on the equipment?
Can the balance be paid off early, and at what cost?

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05 · Equipment leasing

Use the equipment without buying it outright.

An equipment lease lets the business use equipment owned by a leasing company for a set term, sometimes with an option to buy it at the end.

How it generally works: The leasing company buys or holds the equipment and the business makes lease payments. The lease sets maintenance responsibility, insurance and what happens at the end of the term.
Common business uses: Technology, vehicles and equipment the business expects to upgrade or replace on a cycle.
Typical repayment structure: Fixed lease payments over the term. End-of-term options may include returning, renewing or buying the equipment.
What owners are commonly asked to prepare: The equipment quote, vendor information, business financial records and the expected replacement cycle.
Costs and tradeoffs to understand: Lease charges, documentation fees, insurance and end-of-term costs. Leasing can lower the payment while costing more in total if the asset is bought out later.
When another structure may fit better: Equipment the business will keep for many years may cost less through equipment financing.
Questions to ask before moving forward: Who owns the equipment during and after the term?
What are the end-of-term options and their costs?
Who pays for maintenance and insurance?
Can the lease be ended early, and at what cost?

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06 · Working-capital financing

Keep operations steady through timing gaps.

Working capital funding covers day-to-day operating needs such as payroll, inventory and supplier payments, rather than a single long-lived asset. It can be provided through several structures.

How it generally works: Depending on the need, it may come from a line of credit, a short-term loan, receivables financing or another structure. The right form depends on why the gap exists and how long it lasts.
Common business uses: Seasonal swings, inventory buildup before a busy period, a large order, or growth that requires spending before revenue arrives.
Typical repayment structure: Varies with the structure: drawn and repaid for a line of credit, scheduled for a term product, or tied to collections for receivables financing.
What owners are commonly asked to prepare: Recent bank statements, a cash-flow view showing when money goes out and comes in, receivables and payables aging, and the reason for the gap.
Costs and tradeoffs to understand: Short-duration funding can carry a higher total cost relative to the time it is used. Frequent renewals can turn a temporary need into a lasting one.
When another structure may fit better: A recurring shortfall may point to pricing, collections or cost issues that funding will not fix. A one-time investment may fit term financing.
Questions to ask before moving forward: Is this gap temporary, seasonal or ongoing?
How will the funds be repaid, and from what revenue?
What is the total cost for the time the money is used?
What happens if revenue arrives later than expected?

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07 · Bridge financing

Short-duration financing for a defined transition.

Bridge funding is designed to cover a temporary need until a specific event or a longer-term source of repayment occurs.

How it generally works: The provider looks closely at the expected repayment event, such as a pending contract payment or a planned long-term financing, and sets a short term around it.
Common business uses: A time-sensitive business transition with a clear, documented repayment event.
Typical repayment structure: Often shorter and more concentrated than long-term financing, sometimes a single payment when the event occurs.
What owners are commonly asked to prepare: Documentation of the repayment event and its timing, current financial statements and a plan if the event is delayed.
Costs and tradeoffs to understand: Higher cost for a shorter period, extension fees and the risk of needing new funding if the repayment event is delayed.
When another structure may fit better: If the repayment event is uncertain, a longer-term structure may carry less risk.
Questions to ask before moving forward: What happens if the repayment event is delayed?
Are there extension fees?
What is the total cost if the bridge runs its full term?
What secures the funding?

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08 · Invoice and receivables financing

Use eligible receivables to address a payment delay.

Invoice and receivables financing advances money against qualifying customer invoices. The structure determines who collects the invoice and how fees are calculated.

How it generally works: The business submits eligible invoices and receives part of their value. When the customer pays, the advance and fees are settled and any remaining balance is released, depending on the agreement.
Common business uses: Businesses that complete work or deliver goods well before customers pay, especially with commercial or government customers on long payment terms.
Typical repayment structure: Usually settled from customer payments on the financed invoices, according to the agreement.
What owners are commonly asked to prepare: A receivables aging report, customer contracts or invoices, customer payment history and information about any existing liens.
Costs and tradeoffs to understand: Fees based on the invoice amount and how long it stays unpaid. Ask whether customers will be contacted, who carries the risk if a customer does not pay, and whether a lien applies.
When another structure may fit better: If only a few invoices are slow, a line of credit may cost less. If the delay comes from billing practices, faster invoicing may help first.
Questions to ask before moving forward: How is the fee calculated, and does it increase over time?
Will my customers be notified or contacted?
What happens if a customer does not pay?
Is a UCC filing required, and what does it cover?

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09 · Purchase-order financing

Help fulfill a confirmed customer order.

Purchase-order financing may pay the business's supplier so it can produce or obtain goods for a confirmed customer order.

How it generally works: The provider reviews the order, the customer and the supplier, then pays the supplier. When the goods are delivered and the customer pays, the financing and fees are settled.
Common business uses: Product businesses with a valid order from a creditworthy customer but not enough cash on hand to pay the supplier.
Typical repayment structure: Usually resolved from the completed customer transaction.
What owners are commonly asked to prepare: The customer purchase order, supplier quote, margin on the order, delivery timeline and history with the customer and supplier.
Costs and tradeoffs to understand: Fees can be significant relative to the order's margin. Delays in production or delivery can increase cost. The provider may require control over parts of the transaction.
When another structure may fit better: Service businesses and repeat orders may fit receivables financing or a line of credit better.
Questions to ask before moving forward: How are fees calculated if delivery is delayed?
What happens if the customer changes or cancels the order?
Will the provider deal directly with my supplier or customer?
What margin is left after all fees?

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10 · Business acquisition financing

Finance part of an operating-business purchase.

Acquisition financing can combine financing, buyer equity and sometimes seller financing. This section addresses an operating-business purchase, not a real-estate purchase.

How it generally works: The buyer, the seller and any financing provider review the business's history and the purchase terms. The financing is typically structured around the acquired business's cash flow.
Common business uses: Buying an established business with verifiable operations and cash flow, or buying out a partner.
Typical repayment structure: Usually scheduled payments structured around the acquired business's cash flow. Seller financing, if any, follows its own terms.
What owners are commonly asked to prepare: The purchase agreement or letter of intent, several years of the business's financial statements and tax returns, a valuation basis, the buyer's resume and financial statement, and a transition plan.
Costs and tradeoffs to understand: Financing costs, required equity, professional fees and transition risk. Guarantees and liens on business assets are common.
When another structure may fit better: If the business's cash flow cannot be verified, more equity or seller financing may be needed before outside financing fits.
Questions to ask before moving forward: How much equity is the buyer expected to contribute?
Will the seller carry part of the price, and on what terms?
What happens to existing debts and contracts?
What guarantees and collateral are required?

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11 · Merchant cash advance · Education only

Understand the repayment method and total cost.

A merchant cash advance is usually structured as an advance repaid from a share of future sales or receivables. It is not the same as a loan, and its pricing works differently: cost is usually stated as a factor rate rather than an interest rate, and the effective cost can be much higher than a typical loan's. Compare the total amount you will repay and how often payments are taken before you agree.

How it generally works: Repayment may be collected daily or weekly, often directly from deposits or card sales, and can vary with the agreement. Pricing may use a factor rate, which is not the same as an interest rate or APR.
Common business uses: Short-duration operating needs, often when other structures are not available.
Typical repayment structure: Frequent collections, often daily or weekly, until the agreed total is repaid. Some agreements adjust collections to sales; ask how reconciliation works.
What owners are commonly asked to prepare: Recent sales and deposit history and card-processing statements.
Costs and tradeoffs to understand: The total repayment can be high relative to the amount received, and frequent collections can strain daily cash flow. Watch for renewal offers before the first advance is repaid, stacking, personal guarantees, confession-of-judgment and venue terms.
When another structure may fit better: Almost any lower-cost structure the business can obtain. Compare a line of credit, a term product or receivables financing first.
Questions to ask before moving forward: What is the total amount to be repaid, in dollars?
How often are payments collected, and can they be adjusted if sales fall?
What is the estimated payoff period?
What renewal, guarantee and default terms apply?

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Security and responsibility

Collateral, liens and personal guarantees.

A financing agreement may be unsecured, tied to a specific asset, supported by a UCC filing against business assets, or backed by a personal guarantee. Ask what secures the obligation, what can be filed, when a filing is released and which owners are personally responsible.

How the process usually works

Define the need.Purpose, amount and timing.
Prepare records.Share documents only directly with the provider, through its secure portal or another secure method the provider approves.
Review possible paths.Compare structure, cost, payment and risk.
Read the final documents.Confirm every fee, obligation and disclosure before signing.

Warning signs

Slow down when the terms are hard to verify.

Pressure to sign immediately or leave blanks in documents.
Promises of an outcome or funding before any review.
Fees, compensation or the identity of the actual provider are unclear.
The payment schedule or total repayment cannot be explained in writing.
Requests to send sensitive records through an unapproved channel.
Renewal, UCC, personal-guarantee, confession-of-judgment or venue terms are not clearly disclosed.

Compare in writing

Questions to ask about any financing offer.

How much money will the business actually receive?

What is the total amount expected to be repaid?

How often are payments collected?

Is the cost stated as interest, APR, fees, a factor rate or a combination?

Is collateral or a personal guarantee required?

Can the payment change, and under what circumstances?

What happens if revenue slows down?

Are there prepayment charges or benefits?

Who is the actual lender or funder?

Is a broker or other third party being paid? By whom, and how much?

Are there renewal or draw fees?

Will there be a UCC filing or blanket lien, and when is it released?

Do the documents contain confession-of-judgment or out-of-state venue clauses?

Before you sign

Disclosures to expect from a provider.

Florida disclosuresFor many commercial financing transactions of $500,000 or less, Florida law requires the applicable provider—not Cadenhead Legacy Group—to give the business a written disclosure at or before the transaction is completed. The disclosure generally identifies the total financing amount, the amount disbursed after deductions, the total amount paid to the provider, the total dollar cost, the payment amount and frequency, and any prepayment costs or discounts. Banks, credit unions, certain providers and certain transactions are exempt. Read the provider’s documents carefully and ask the provider about any term you do not understand.

SBA loansSBA-guaranteed 7(a) loans are made by participating lenders, and 504 financing is arranged through Certified Development Companies with a senior lender—not by the SBA or Cadenhead Legacy Group. If Cadenhead Legacy Group or Gulf Coast Merchant Services provides referral or other agent services in connection with one of these loans, any compensation will be handled and disclosed on SBA Form 159 when SBA rules require it.

Not a lenderCadenhead Legacy Group is not a lender or funding provider and does not provide financing directly. Any financing decision is made by the applicable independent bank, lender or funding provider.

CompensationIf financing closes, an independent bank, lender, or funding provider may pay a referral or broker fee to Cadenhead Legacy Group or Gulf Coast Merchant Services, depending on the applicable provider agreement. Any required compensation disclosures will be provided in accordance with applicable law.

Last reviewed October 15, 2026

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