The shape of a term loan
You receive a lump sum and repay it on a set calendar. Because the schedule is fixed, you can plan around it. The flip side is that it does not flex: the payment is due whether your month was good or terrible.
Projects that suit this structure
Elk Grove has grown into a city of 176,124 residents across about 42.20 square miles, which gives owners reasons to expand. A bakery adds a second counter. A contractor leases a yard and buys a trailer. A tutoring center takes the adjoining unit. A tasting room adds a patio. Each project has a one-time cost and benefits that last. Spreading the cost over a schedule can protect operating cash.
When to look elsewhere
- The need keeps coming back: consider a line of credit.
- You are buying one machine or vehicle: see equipment financing.
- You only need to bridge a month: working capital is built for that.
- Your sales swing widely: revenue-based financing flexes with revenue.
Stress-test before signing
For illustration only, suppose a term loan requires $4,000 a month. Your fixed costs are $22,000, and your last twelve months of revenue ranged from $28,000 to $65,000 with gross margin of about 40%. In the weakest month, margin of roughly $11,200 does not cover $22,000 of fixed costs, so any loan payment would come from reserves. Run your own numbers the same way, using the worst month from your bank statements, not the average. These figures are examples, not our terms.
Questions for any offer
- What is the total repayment amount?
- Is the payment weekly, biweekly or monthly?
- Is early repayment allowed, and does it change the total?
- Is anything pledged as security?
A note on timing the draw
With a term loan the money arrives all at once, so line up the spending before you borrow. If a build-out will take three months, you will be paying on money you have not yet used. Get contractor quotes in writing, confirm permit timelines with the City of Elk Grove, and borrow once the schedule is firm. A loan sized to a quote that later grows by a quarter leaves a hole in the project. A modest contingency in the request is better than returning to borrow again mid-project, and it is better still to keep a cash reserve that is separate from the loan itself.
Our requirements
We provide funding between $25,000 and $5,000,000, and funds can arrive in as little as 24 hours. We consider FICO 500+, ask for about three months of business bank statements, and do not require tax returns. The application takes about five minutes with a soft pull. Sole proprietors can apply. We do not publish rates or terms on this page. See the main Elk Grove page or apply directly.