The basic bargain
A term loan gives you a set sum repaid on a set schedule. You always know what is due and when, which makes budgeting simple. The price of that certainty is that the payment is due in slow months too. It suits a business with steady revenue and a project that will pay for itself, such as an expansion, a build-out, a major equipment buy or a second location. It suits a business with swings in income less well.
We do not post rates or terms on this page because they depend on your statements and the offer.
Where a Lancaster owner might use one
Lancaster is a city of 173,516 people over about 94.52 square miles, per the 2020 census, and Wikipedia lists a number of business and industrial parks, including Lancaster Business Park, Enterprise Business Park and Centerpoint Business Park. Growth here often means moving into a bigger bay, adding racking or a second shift, or building out a retail space in one of the city's shopping centers. These are one-time purchases with a visible payback, and they are the kind of project a fixed schedule is designed for.
Test the plan before you borrow
| Test | What to write down |
|---|---|
| Payback | Added monthly profit from the project |
| Payment | Estimated monthly payment from the offer |
| Cushion | Months of payment your current deposits can cover if sales dip 20% |
| Timing | How long before the project starts producing |
For illustration only: if a new bay adds $4,000 a month in profit and the payment is $2,500, there is room. If the project adds $1,500, there is not. The numbers are an example, not our terms.
What a sensible borrower does first
Get two or three quotes for the project, not one, and ask the contractor or vendor what is included. Build in a contingency: projects in older or industrial buildings run over more often than they come in under. Decide in advance where the extra money will come from if costs rise 10 to 15 percent, since a fixed payment does not flex. Finally, keep working cash separate from project money, so that a late customer payment does not force you to dip into the build budget halfway through.
Alternatives worth a look
- If the need is smaller and recurring, a line of credit costs only when drawn.
- If sales are uneven, revenue-based financing bends with income.
- If it is machinery, equipment financing keys the cost to the asset.
What we ask for
Requests run from $25,000 to $5,000,000. We ask for about three months of business bank statements and a 5-minute application. FICO 500 and above is considered, tax returns are not required, the credit pull is soft, and funding can come in as little as 24 hours after approval. Sole proprietors can apply. For the broader region, see Mojave High Desert funding. Apply here.