What you get and what you give up
A term loan provides a lump sum repaid on a set schedule. You can plan your cash around it. It does not flex: the payment is due in strong and weak months alike.
Fremont projects that suit it
Fremont has 230,504 residents across about 88.46 square miles, a strong tech and manufacturing presence, and a large number of suppliers and service businesses. Typical projects include fitting out a second location, adding a production bay, renovating a restaurant, buying out equipment with a clear payback, or moving to larger premises. Each has a one-time cost and a benefit that lasts, which suits a schedule.
The weak-month test
| Step | Illustrative figure |
|---|---|
| Weakest month's revenue | $35,000 |
| Gross profit at 45% | $15,750 |
| Fixed costs | $13,000 |
| Left before any loan payment | $2,750 |
Examples only. If a $5,000 payment would exceed what is left, it would come from reserves. A flexible alternative such as a line of credit or revenue-based financing may fit better.
Questions for every offer
- What is the total I repay, in dollars?
- How often is payment due?
- Can I repay early, and does the total change?
- What secures the loan, if anything?
Timing and contingency
Money from a term loan arrives at once, so line up the spending before borrowing. Get two or three written quotes for a build-out, confirm permit timelines with the city, and add a modest contingency to the request. A project that goes over quote by a quarter leaves a gap you will have to fill from operating cash. It is better to borrow slightly more than to return mid-project. Keep a separate cash reserve in addition, so a delay in opening does not threaten your regular payroll.
Finally, think about sequencing: do not begin paying for the new space months before you can use it if you can negotiate a later start.
Matching the loan to the life of the project
A rule of thumb that holds up well: do not repay a short-lived purchase over a long period, and do not squeeze a long-lived project into a short one. A repainted storefront and a new production bay do not wear out on the same timeline. If you are financing several things at once, consider splitting them so each is repaid over a period that matches how long it will serve you, and keep one eye on the total repayment across all of them.
Requirements
We provide funding from $25,000 to $5,000,000, funded in as little as 24 hours. We consider FICO 500+, request about three months of business bank statements, and need no tax returns. The application takes about five minutes with a soft pull, and sole proprietors can apply. We post no rate or term; those depend on your account. See the main Fremont page or apply here.