A city with a long record of newcomers building businesses
Los Angeles was founded on September 4, 1781, and Wikipedia says the discovery of oil in the 1890s brought rapid growth. It describes neighborhoods such as Chinatown, Historic Filipinotown, Koreatown, Little Armenia, Little Ethiopia, Little Tokyo and Thai Town as examples of the city's multicultural character, and says that communities of people of Mexican and Central American descent are long established across the metropolitan area. The common thread is people starting small businesses close to their communities: a restaurant, a market, a salon, a trucking operation, a design studio.
What we need from a young business
We ask for about three months of business bank statements and a 5-minute application. We consider FICO 500 and above, do not require tax returns and use a soft credit pull. Requests run from $25,000 to $5,000,000, and funding can arrive in as little as 24 hours after approval. Sole proprietors can apply. If there are no business deposits yet, the file is difficult to review, so open a business account and put sales through it first.
Five startup archetypes in Los Angeles and what each needs first
- The food business: equipment and permits, then three months of ingredients.
- The mobile service: a reliable vehicle and tools, plus insurance.
- The creative studio: gear and space, with a few paying clients lined up.
- The retail shop: a lease deposit, fixtures and a first inventory buy.
- The online seller: inventory and a way to ship; stock is the cash trap.
The first ninety days
Plan the first ninety days in weeks, not months. Which week do you pay the lease deposit? When does the first inventory order land? When is the first full payroll? Put each date and amount in a simple grid and total it. The number at the bottom is the amount you are really asking for, and it is almost always higher than the first guess. Add a cushion for the unexpected, since permits and delivery dates slip more often than they speed up. Owners who show up with this grid are easier to review and easier to help.
Ways to make a thin file stronger
- Keep personal and business money apart.
- Deposit all customer payments into the business account, even small ones.
- Note what each purchase was for, so spending can be matched to income.
- Prepare a three-line answer to: what will the money buy, what will it earn, and how will it be repaid.
For illustration only: an owner asking for $40,000 should be able to say, for example, $25,000 for equipment, $10,000 for the first three months of inventory and $5,000 for a security deposit and insurance. Vague requests are hard to evaluate.
What to read next
If your first need is a machine or vehicle, see equipment financing. If you need cash for payroll and stock while sales ramp, see working capital. Region and county context is on the LA Metro page. Apply here.