What a term loan is
A term loan provides a single amount repaid on a set schedule. The payment is the same each period, so you can plan around it. The cost of that predictability is that the bill arrives whether or not the month was good. We do not publish rates or terms on this page; they depend on your statements and the offer.
Projects Long Beach owners finance
With a population of 466,742 and a port that Wikipedia describes as among the world's largest, Long Beach has businesses that grow by expanding physical capacity: a larger warehouse bay, a second kitchen, a clinic suite, a second shop. Its economic base has shifted from oil, to the Navy, to aerospace, and Wikipedia notes that oil extraction still funds part of the city budget. The lesson for a local owner: the businesses that last tend to adapt, and adapting often costs a lump sum.
The four-number test
| Number | Question |
|---|---|
| Total cost | What will the whole project cost, with a 10 percent cushion? |
| Added profit | How much more will the business earn each month once it is running? |
| Payment | What is the monthly payment in the offer? |
| Months to payback | Total cost divided by monthly added profit |
For illustration only: a $90,000 build-out adding $5,000 a month in profit pays back in 18 months. If the payment is $3,500, the project leaves $1,500 a month of margin. Example figures, not our terms.
Questions to ask the contractor first
Before you borrow, ask whoever is doing the work what happens if the schedule slips. In older industrial and commercial buildings, permits, inspections and surprises behind walls are the usual causes of delay. Every month of delay is a month of payment without added profit. Ask for a written schedule, get the permit status in writing, and keep a reserve equal to at least two payments. A project two months late and still covered is a nuisance; one two months late and uncovered is a crisis.
Choosing between a term loan and a line
Use a term loan for a one-time, defined cost. Use a line of credit for recurring gaps. Use equipment financing if the project is mostly machinery. If revenue is lumpy enough that a fixed bill worries you, compare revenue-based financing. Healthcare practices expanding can also see healthcare funding in Long Beach.
What we ask for
Requests run from $25,000 to $5,000,000. About three months of business bank statements and a 5-minute application. FICO 500 and above considered, no tax returns, soft credit pull. Funding can arrive in as little as 24 hours after approval. Sole proprietors can apply. Apply here, or see the Long Beach overview.