The concept
Revenue-based financing ties repayment to what the business brings in. A strong month sends more toward the balance; a quiet month sends less. A standard installment is fixed. We do not publish rates or terms, since they depend on the business. Funding ranges from $25,000 to $5,000,000 and can arrive in as little as 24 hours.
Why it can suit Oceanside businesses
Wikipedia describes a city with a pier that is among the longest wooden piers on the western U.S. coastline, a harbor, beaches, a downtown cultural district with museums and theaters, and a weekly Sunset Market. These attract visitors in waves. Revenue for shops, cafes, vendors and tour operators moves with the season and the weather, even in a climate that Wikipedia describes as mild.
A fixed monthly payment is built for steady income. A revenue-linked one tracks deposits, so the quiet months are less punishing.
Illustration (not our terms)
A beachside cafe deposits $52,000 in July and $21,000 in January. If a fixed share of deposits went toward repayment, the cafe would pay more in July and much less in January, keeping cash for rent when it is scarce. A flat payment sized to July would be heavy in January. These round numbers show a structure only.
What to weigh
- Margin. A share of every sale leaves the account. Make sure the remaining margin is enough.
- Duration. If revenue stays low for a long time, repayment stretches.
- Purpose. It suits spending that raises sales: marketing, stock, a second cart or truck. A single machine fits equipment financing.
- Alternatives. A term loan if income is steady; a line of credit if gaps recur.
Test the idea on your own numbers
Take a typical sale and subtract the share of revenue that would go toward repayment. Is the profit that remains still worth your time? Food businesses with thin margins have less room than a service business with high ones. Next, picture a season with revenue a third lower than usual: how long would repayment stretch? A payment that follows revenue slows down when revenue does, which eases the squeeze but also lengthens the commitment. Be comfortable with both before you apply.
Where it works best
Marketing that brings in customers, stock that sells through within weeks and a second cart or location that adds revenue are all spending that can lift sales, which is when a payment that follows sales makes the most sense. Spending that adds nothing to revenue, such as a repair that only restores what you had, sits less comfortably. For gaps that recur, a line of credit is often the cleaner answer.
How to apply
We consider FICO scores of 500 and above, ask for about three months of business bank statements, require no tax returns, and use a soft credit pull on a five-minute application. Sole proprietors can apply. For daily costs, see working capital. Apply here.