A payment that moves with sales
Revenue-based financing, in general, means repayment follows a percentage of revenue instead of a set monthly figure. In a busy month the amount repaid rises; in a quiet one it falls. That sounds simple, and it is the main reason owners in swing-heavy trades look at it.
Fresno is an obvious place to ask the question. The city is an economic hub for the San Joaquin Valley, and much of the metropolitan area around it is predominantly tied to large-scale agricultural production. Businesses that sell to growers, packers and haulers see income that jumps with seasonal activity and then flattens. A flat payment sized for the peak strains the trough; a payment sized for the trough leaves money on the table.
Flat payment versus revenue-linked payment, side by side
For illustration only, take a farm-equipment parts dealer in Fresno County with these monthly sales and a payment of the same dollar amount compared with a payment set as a share of sales. The figures are round examples, not our terms or rates.
| Month | Sales | Fixed payment of $4,000 | Payment at 8% of sales |
|---|---|---|---|
| Peak month | $90,000 | $4,000 (4.4% of sales) | $7,200 |
| Average month | $50,000 | $4,000 (8% of sales) | $4,000 |
| Slow month | $25,000 | $4,000 (16% of sales) | $2,000 |
The fixed payment is cheap to carry in March and heavy in January. The linked payment is lighter when cash is scarce, but it also takes more in the strong months, so the total moves with how the year goes. Which is better depends on how predictable the year is, and no table can answer that for your books.
Signs this structure suits a Fresno operation
- Your sales have a clear high season and a clear low one, tied to growing, packing, shipping or school calendars.
- You would rather repay faster in a good stretch than carry a fixed number in a bad one.
- You sell into the food, freight and farm-supply web around the city, where larger customers pay on their own schedule.
- Your bank deposits show the pattern clearly, because that is what a review reads.
It suits less well when revenue is flat and predictable, since a fixed schedule is easier to plan around, or when you are funding a single purchase that will not itself raise revenue.
What applying looks like
We fund $25,000 to $5,000,000, with funding in as little as 24 hours after approval. FICO 500+ is considered, we ask for roughly three months of business bank statements, and no tax returns are required. The five-minute application uses a soft pull, and sole proprietors can apply. Start here: apply.
Other Fresno routes to compare: merchant cash advance, term loans and working capital. The wider picture for the area is on the Fresno County page, and nearby owners in Clovis, Sanger, Selma and Reedley use the same form.