| Term Loan | Large, one-time expenses like buying equipment, major expansion, or long-term working capital. | A lump sum repaid over a fixed period (e.g., 1-5 years or more) with fixed, regular payments. |
| Working Capital Loan | Daily operational needs, like inventory, salaries, and managing cash flow gaps. | Short-term financing (often up to 12 months). Focus is on immediate liquidity. |
| Overdraft Facility | Flexible, ongoing short-term funding for unexpected needs. | Allows you to withdraw money up to a pre-approved limit, even if your account balance is zero. Interest is only paid on the amount utilized. |
| Equipment Finance | Purchasing new machinery or upgrading existing equipment. | The equipment itself often serves as collateral, making it easier to secure. |
| Invoice/Bill Discounting | Managing cash flow when waiting for customer payments on invoices. | The lender provides funds against your unpaid invoices at a discounted rate. |
| Secured Loan | When you need a large amount and can offer an asset (property, equipment, etc.) as collateral. | Generally offers lower interest rates and longer repayment terms because the lender’s risk is lower. |
| Unsecured Loan | Typically for smaller amounts and less established businesses, or when you don’t want to offer collateral. | Does not require collateral. Approval depends heavily on the business’s financials and credit score, often resulting in higher interest rates. |
