The long wait on a big check
Large employers usually pay suppliers on terms of 30, 45 or 60 days. Wikipedia notes that Fremont is home to a Tesla plant that is the city's largest employer and to headquarters of several technology and electronics companies. A small business that sells into that world can win large orders. It must also carry weeks of payroll and materials before it gets paid for them.
A worked example
For illustration only: a Fremont signage and fabrication firm wins a $55,000 order payable 45 days after delivery. Materials cost $22,000 and labor over four weeks adds $14,000. The firm has spent $36,000 and has $11,000 in the account. Without help, it either turns down the order or delays its own suppliers. A working-capital advance sized to the shortfall covers the gap and no more. These numbers are an example, not our terms.
Other gaps owners describe
- Restaurants and cafes buying inventory before a catering event or a corporate lunch order.
- IT and consulting firms paying contractors before clients pay invoices.
- Facilities and cleaning crews paying staff weekly against monthly billing.
- Importers and small distributors paying for stock that arrives weeks before it sells.
What it is not for
Working capital is not ideal for a large asset purchase, where equipment financing is built for the job. It does not suit constant, unpredictable needs as well as a line of credit. And it is not a cure for a business that loses money each month. Size your request to the gap: what you will pay before collections, minus spare cash, plus a small cushion.
Signs you are asking for the right amount
You should be able to list, in a sentence each, the bills the money will pay and the dates you expect customer payments. If you cannot, tighten the plan first. Asking for too little leaves no cushion for a second surprise, and asking for too much raises what the business owes without raising what it earns. A request tied to a specific order and a specific payment date is easier to review and easier to repay than a round number chosen out of habit.
How to apply
We provide $25,000 to $5,000,000, funded 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 Alameda County for context, the lower-credit page if needed, or apply here.