A defined project, a defined schedule
A term loan, generally, is a set amount repaid on a fixed schedule over a set period. It suits expansion that will pay back over several years: a second office, a lab or production space, a build-out, a vehicle fleet or a major equipment line.
Irvine has a technology-heavy business base, with firms in technology and semiconductor sectors and international companies running North American headquarters there. Suppliers and service firms that grow alongside them often reach a point where they need more space or capacity, which is a natural term-funding moment.
Four tests before taking a fixed payment
- Payback. What does the project earn each month, and when does it start earning?
- Thin month. Can the weakest recent month of deposits cover the payment?
- Delay. If the project opens late or fills slowly, is the payment still manageable?
- Scope. Is some of the request really working cash that belongs in a separate line?
If you fail one, resize the request or choose another structure, such as a line of credit or revenue-linked repayment.
A worked illustration
For illustration only, an Irvine contract-manufacturing firm wants a second production bay for $220,000: $140,000 of equipment, $50,000 for fit-out and power, and $30,000 for added payroll and materials in the first quarter. The owner expects new work to bring in revenue about three months after installation. A cautious version of the test assumes the work arrives six months late, and asks whether the existing business can carry the payment in the meantime. The numbers are a planning example, not our terms or typical results.
Right-sizing the request
List every cost, add a small contingency for delays, and stop. A bigger amount means a bigger payment, and padding rarely earns anything. If part of the request is working cash for the opening months, label it and consider a separate request through a line of credit. Clear, itemized requests are easier to review and easier for you to repay. It also helps to name an owner for the numbers: one person who tracks the payment, the new revenue and the thinnest month, and reviews them every month for the first year after the project starts.
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 with a soft credit pull; sole proprietors can apply. Apply to start.
If the project is mainly equipment, see equipment financing. For area context, see Orange County.