The local picture
Palmdale is an Antelope Valley city in Los Angeles County with 169,450 residents (2020 census). Its name traces to "Palmenthal," after the Joshua trees early settlers called yucca palms. Wikipedia names aerospace as the city's most important industry and notes that other manufacturers have moved in for more affordable land and proximity to Palmdale Airport. The Antelope Valley Enterprise Zone and the Palmdale Federal Foreign Trade Zone were created to help Palmdale and nearby Lancaster draw jobs so the area depends less on the Los Angeles Basin.
Why supplier cash flow is lumpy
A machine shop, coatings company or parts supplier often buys material and pays skilled labor long before a large customer's payment arrives. Orders can come in bursts. Inspection and paperwork add time. The result is a business that is profitable on paper but tight in the bank account.
For illustration only: a shop wins a run that needs $120,000 in material and overtime. Payment comes after delivery and acceptance. A loan sized to that material and labor, repaid as the customer pays, keeps the shop from turning work away. Borrowing to cover a shortfall that shows up every single month, though, only postpones the problem.
Preparing your file
- Bank statements. Gather about three months of business bank statements. These are the core of the review.
- Your credit range. We consider FICO 500 and above and use a soft pull.
- A use-of-funds note. A few lines on what the money buys and when revenue follows.
- Your weakest month. Find it in those statements and test the payment against it.
You do not need tax returns. The application takes about five minutes, and sole proprietors can apply, which matters for the many one-person trades and service firms in the valley.
Not only for aerospace
Palmdale's growth also supports restaurants, auto repair, medical offices, landscapers and retail. Their needs are different: a new walk-in cooler, a second service truck, a lease deposit. The same principle applies. Borrow for a defined purpose that pays back, not for a gap that never closes.
For an overview of every option in the city, see the Palmdale business funding page.
Amounts and speed
Funding runs from $25,000 to $5,000,000 and can be funded in as little as 24 hours once a file is complete. When you are ready, start the application.