Start with the purchase, not the loan
The cleanest case for a term loan is a one-time cost that pays for itself over many months: a new press brake for a shop, a build-out for a clinic, a second delivery van, a signage and fit-out package. A lump sum arrives, a schedule is set, and the purchase starts earning. The risk is using the same structure for something that does not earn, such as covering a payroll gap, because the schedule continues whether or not sales do.
Riverside has a lot of businesses that fit the first pattern. Its economy is largely light industry, with aircraft components, automotive parts, electronic equipment and medical devices among its outputs, and the industrial parks around the airport and in Sycamore Canyon host operators who periodically need a machine, a tool or a vehicle.
Purchase or gap? A sorting table
| Need | Better fit | Why |
|---|---|---|
| Replacing a worn production machine | Term loan | One purchase, a clear payoff period |
| Fitting out a second location | Term loan | One-time cost that can be planned against revenue |
| Buying stock before a busy period | Working capital or a line | Needs to be repaid and re-used as stock sells |
| Waiting on a large invoice | Working capital | Short gap, not a long-term asset |
| Covering a slow month | Working capital or a line | A fixed schedule would add pressure |
Doing the monthly math, for illustration
Suppose a Riverside shop plans a $120,000 equipment purchase repaid in equal monthly payments over a fixed period. Before applying, work out the new revenue or saved cost the machine brings in a month, and the monthly payment. If the machine adds $9,000 of gross margin a month and the payment is $4,500, the purchase covers itself. If the margin depends on a customer who has not yet signed, the picture is riskier. This is round-number arithmetic to show the test, not our terms or a typical outcome.
Questions to settle before you sign a schedule
- What is the full amount you will repay over the schedule, including fees, not only the monthly figure?
- Does the payment still work in your weakest month of the year, not just your average one?
- If the equipment or project is delayed, when does the first payment start relative to when it begins earning?
- Can you repay early, and does that change what you owe?
A Riverside owner with a long-standing professional practice or a small plant may also want to ask whether a fixed schedule is the right shape at all, since fixed payments favor businesses whose revenue is fairly even from month to month.
What we ask for
We fund $25,000 to $5,000,000, in as little as 24 hours once approved. We consider FICO scores of 500 and up, review about three months of business bank statements and do not ask for tax returns. The application takes about five minutes with a soft credit pull. Sole proprietors can apply.
If the real need is specific machinery, see equipment financing. If you are still deciding between structures, compare working capital and revenue-based financing. Then apply.