What a term loan commits you to
A term loan delivers a lump sum and asks for a repayment schedule that continues whether or not the business has a good month. That is the whole trade. The structure is predictable and the money is yours to deploy, but a slow quarter does not reduce the payment. It therefore fits businesses with fairly even revenue and a purchase that will earn for years.
Sacramento's mix, with government, healthcare, manufacturing and technology all present, gives it plenty of owners with steadier revenue and project-sized needs. We do not publish rates or lengths on a web page, and nothing here is a quote.
Build, buy or lease: a decision table
| Option | Cash out now | Best when |
|---|---|---|
| Build or fit out | Large, up front | You own or hold a long lease and the space is core to revenue |
| Buy equipment | Large, up front | You will use it for years and it directly produces revenue |
| Lease | Small, ongoing | Technology changes fast or you may move |
| Delay the project | None | Revenue does not yet cover the added payment |
A clinic expanding to a second exam suite and a food producer adding a packaging line are classic term-loan candidates. A firm covering payroll is not.
Test the payment in your worst month
For illustration, a Sacramento medical-support firm with $85,000 in a typical month and $62,000 in its weakest takes a $150,000 build-out. Whatever the monthly payment is, it must fit in the $62,000 month after payroll and rent. If the margin disappears in that month, either the amount is too large or a more flexible structure would be a better match. Round numbers, not our terms.
Also ask when the first payment starts relative to when the project begins to earn.
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 the slowest quarter of your year?
- If the build-out or delivery slips, when does the first payment start relative to when the project earns?
- Can you repay early, and does that change what you owe?
A Sacramento firm whose customers pay on long invoice cycles should also ask whether a fixed payment date will land before the money does. If it will, pairing the project with a small reserve is wiser than stretching the amount.
Applying
We fund $25,000 to $5,000,000, with funding in as little as 24 hours once approved. We consider FICO scores of 500 and up, ask for about three months of business bank statements and do not require tax returns. The application takes about five minutes and uses a soft credit pull. Sole proprietors can apply. Compare with equipment financing for a specific machine, a line of credit for repeating gaps, or working capital for a short bridge. Owners in Folsom, Elk Grove and Citrus Heights can apply the same way.