The core idea
Working capital covers the running costs of a business while money is on its way: payroll, rent, supplies, insurance. It is meant to be repaid from the invoice or season it bridges. It is not a replacement for profit and not a way to finance a long-term asset.
Why the gap is wide in Los Angeles
Los Angeles has about 3,898,747 residents, covers about 498.3 square miles and, per Wikipedia, has a diverse economy with a broad range of industries and a long-standing role in film and television production. Costs here come early: rent, labor, insurance, vehicle and fuel. Payments come late, often on net-30 to net-60 terms from larger clients and production companies.
For a small business, a sixty-day wait on a large invoice can be longer than the cushion in the account. Working capital is designed to cover that window.
Walkthrough, for illustration only
- A caterer books a $28,000 job on net-45 terms.
- It pays $9,000 for food, $8,000 for staff and $1,500 for rentals in the next three weeks.
- The account holds $6,000 on day one.
- The shortfall peaks near $12,500.
- A working-capital advance in that range closes the gap, and the client's payment repays it.
Example numbers, not our terms.
How to size the request
Count only what falls due before the money arrives. In the catering example, the shortfall is $12,500, not the $28,000 invoice. Ask for the gap plus a small cushion. Think about when the invoice will actually pay, not when the terms say it should: if a client habitually pays at day 60 on net-45 terms, plan for day 60. Then confirm that, once repaid, the business is left with a healthier cushion than it started with. If not, the real problem may be margin or terms rather than timing.
When something else fits better
- A repeating gap: a line of credit.
- A large project: a term loan.
- Heavy daily payments on old advances: MCA relief.
- Port or freight-related receivables: ports and logistics.
What the review looks at
We read about three months of statements for steady deposits, a visible pattern of income and expenses, and signs that the business can handle repayment. Deposits matter more than the story, though a short note about unusual months helps. Business accounts that mix personal spending are harder to read, so tidy those up first.
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 in as little as 24 hours after approval. Sole proprietors can apply. We do not publish rates or terms on this page; compare offers in writing. Apply here.