How it differs from a fixed payment
A fixed payment asks the same amount every month. Revenue-based repayment moves with your sales: more in strong months, less in weak ones. For a business with uneven income, the difference can be the margin between a rough month and a missed payroll.
Where income is uneven in Fremont
Fremont's economy, as Wikipedia describes it, centers on technology and manufacturing, with the largest employer a vehicle plant. Small firms near that ecosystem often see work arrive in waves: a prototype project, a production run, a product launch that needs signage and catering, then a quiet spell. Startups and contractors who sell into the cycle see the same pattern. Neighborhood businesses such as restaurants, salons and studios track the commute and school calendar.
Fixed versus revenue-linked, side by side
| Month | Revenue (example) | Fixed $4,000 | 8% of revenue |
|---|---|---|---|
| Launch month | $80,000 | $4,000 | $6,400 |
| Normal month | $45,000 | $4,000 | $3,600 |
| Quiet month | $18,000 | $4,000 | $1,440 |
For illustration only. The 8% is invented and is not an offer or a rate. The takeaway is the shape of the payment, not the number.
What to question
- How is total repayment determined, and what is the range under strong and weak sales?
- Is there a minimum payment in a slow month?
- What if revenue grows faster than expected: does the balance clear early, and does the total change?
- How is revenue measured, deposits or reported sales?
Compare with a fixed term loan if income is steady, or a line of credit if needs are irregular but income is not.
When fixed is better
If your revenue is steady within a narrow range, a fixed schedule is simpler and often cheaper, because you are not paying extra for flexibility you do not use. Revenue-linked repayment earns its place when the range is wide. Check twelve months of deposits first, and if the weakest month is within thirty percent of the strongest, compare a term loan carefully before choosing flexibility. A decision made from your own numbers beats one made from a product description.
A short checklist before you choose
- Pull twelve months of deposits and mark the best and worst months.
- Estimate what you could repay in the worst month without missing payroll.
- Ask for the total repayment under a strong and a weak year.
- Confirm how revenue is measured and whether any minimum applies.
If you can answer all four, you are ready to compare offers on the numbers rather than on the sales pitch.
Applying
We provide funding from $25,000 to $5,000,000, in as little as 24 hours. We consider FICO 500 and above, ask for about three months of business bank statements, and need no tax returns. The five-minute application uses a soft credit pull, and sole proprietors can apply. See the Bay Area page or the main Fremont page, or apply here.