What counts as a startup file
Funders who consider newer businesses cannot lean on years of history, so they read the evidence you do have. For us, that means about three months of business bank statements and a 5-minute application. We consider FICO scores of 500 and above, do not require tax returns, and use a soft credit pull. Sole proprietors can apply. If your account shows regular deposits from customers, even small ones, that is the strongest thing you can bring. A business with no deposits yet is harder to review, and we will not pretend otherwise.
The Lancaster setting for a new business
Lancaster is in the Antelope Valley of the western Mojave Desert, about 70 miles north of downtown Los Angeles. The 2020 census counted 173,516 residents. Antelope Valley College, founded in 1929, and a satellite campus of California State University, Bakersfield are both in the city, which supplies students, staff and local expertise for new ventures. The Lancaster Museum of Art and History opened in the downtown district in 2012, and The BLVD project on Lancaster Boulevard, completed in 2010, was designated a California Cultural District in 2018, per Wikipedia. Revitalizing downtown has been a stated focus of the city, which matters if you are opening a cafe, studio, boutique or service shop where foot traffic counts.
The city also lists Lancaster Town Center and Front Row Center among its retail centers.
Three startup stories, in outline
The service business with a truck
A mobile detailer, landscaper or handyman needs a vehicle and tools, then waits on early customers. Seed money typically covers equipment and a month or two of fuel and supplies.
The storefront
Lease deposit, signage, inventory and a first payroll all come before opening day. The risk is a slow first quarter, so the plan should hold up if sales come in lower than hoped.
The online or home-based seller
Costs are lower, but inventory ties up cash. The question is whether reorders will be paid by sales before the next supplier bill is due.
Make the file easy to read
- Run all business income and expenses through one business account for at least three months.
- Separate personal spending from the business account.
- Write one paragraph explaining the use of funds with rough amounts.
- Keep customer invoices or receipts that match the deposits.
What to look at next
Requests run from $25,000 to $5,000,000, and funding can arrive in as little as 24 hours once approved. If you already have equipment needs, see equipment financing. If your issue is a gap between invoices and payments, working capital may fit better. If credit is a concern, read about bad credit business loans in Lancaster. Apply here.