A fixed schedule for a defined project
A term loan, generally, is a set amount repaid on a fixed schedule over a set period. The advantage is predictability: you know the payment, you can budget around it and you can compare it with what the project will earn. That works when the spending is a single, identifiable thing: a second location, a build-out, a vehicle fleet, a major renovation.
Glendale covers 30.61 square miles and has a population of 196,543, with a dense mix of storefronts, offices and light-industrial space. A growing business there often wants to move from a single unit to two, or to take over larger space. Those are one-time decisions with a multi-year payback.
Questions a term decision should answer
- What exactly does this money buy, and what does it earn each month?
- What is the payment compared with the thinnest month of deposits?
- What happens if the project opens late?
- Is part of the need actually operating cash that belongs in a different structure?
The last question matters most. Many owners fund a build-out and forget to fund the first three months of rent and payroll after opening. If that applies to you, split the request, or see working capital.
A worked example, labeled as illustration
Imagine a Glendale restaurant adding a second location for $180,000: $110,000 for build-out and kitchen equipment, $30,000 for deposits and permits, and $40,000 for the first months of payroll and food. A fixed payment on that amount is easy to compare with the projected sales of the second site. A common mistake is to project the strongest month and ignore the opening ramp. A more cautious test: can the payment be covered by half of what you expect the new location to sell in its first quarter? The figures are a planning example, not our terms or typical results.
Choosing between term funding and the alternatives
Term funding is not the only way to pay for a larger project. If the project will take months to bring in revenue, a reusable cushion such as a line of credit can carry early costs while you decide how much of the project to fund long-term. If the spending is mostly one machine, equipment financing keeps the cost tied to the asset. If your sales swing widely, revenue-based financing lets repayment follow the swings. A term structure is at its best when the project is clear and the payment is easy to cover.
Applying
We fund $25,000 to $5,000,000, with funding in as little as 24 hours after approval. FICO 500+ is considered, about three months of business bank statements are needed, and no tax returns are required. The application takes five minutes and uses a soft credit pull. Sole proprietors can apply. Apply to begin.
If the need is a machine, see equipment financing. If the revenue is lumpy, see revenue-based financing. See also the Los Angeles County overview.