Operating comes before applying
Funders read deposits, so a business with no deposits has little to show. If you have not yet opened, the better move is to open the account and begin. If you have been trading for a few months, you may already have what we ask for: about three months of business bank statements.
We require no tax returns, the credit pull is soft, FICO scores of 500 and above are considered, and sole proprietors can apply. Funding runs from $25,000 to $5,000,000, and can arrive in as little as 24 hours. We state no minimum revenue or time in business here, because it would be invented.
What a young city offers a new owner
Moreno Valley was incorporated in 1984, per Wikipedia, and has grown into the second-largest city in Riverside County. A newer city means newer neighborhoods, which often means customers who are still finding their regular coffee shop, gym and mechanic. The same article describes it as a crossroads between Riverside, Perris and the San Bernardino Valley, with State Route 60 and Interstate 215 running through, so a startup can serve more than one city from a single address.
The city also hosts a Riverside Community College District campus and a Chapman University campus, which gives mobile service and food ideas a built-in student audience.
Four first-year costs to plan for
- The build-out or the vehicle. Often the single largest spend, and the easiest to quote in writing.
- The first inventory order. It must be bought before it sells.
- Licenses and insurance. Small but due on day one.
- A cushion for slow months. The first year rarely follows a plan.
For illustration only: an owner who spends $22,000 in the first month and collects steady revenue in month three needs about two months of carrying costs. That is the bridge to explain on an application.
What helps your file
- One business account that carries all sales and expenses.
- A one-line use of funds, such as "van down payment and shelving."
- A list of what you owe, including personal credit used for the business.
- Your slowest week since opening.
A first-year mistake worth avoiding
The common error is asking for too much too early. A new owner who borrows to cover twelve months of losses has no way to repay if the plan takes longer than expected. A better rule is to borrow for the specific purchases that produce revenue, and let the first months of sales cover everything else. If your plan only works with the maximum amount, rework the plan before you apply. If it works with a smaller figure and a cushion, the application is stronger and the payment is lighter.
Also keep personal and business money apart. Mixed accounts make statements harder to read and can slow any review.
Next steps
Once deposits are steady, working capital and a line of credit become easier to justify, and equipment financing suits a specific purchase. Apply here.