What drives your revenue swings?
Before comparing structures, name the cause of your uneven months. In San Bernardino, there are a few common ones. Freight and warehouse volume is one: the city is described as an intermodal logistics hub, with a BNSF freight yard and warehouses developed near the airport. Campus calendars are another, given California State University, San Bernardino. Passing traffic is a third, since the I-10, I-215 and SR-210 junctions bring customers and the loss of I-15 traffic to Rancho Cucamonga and Ontario shows how fast that can change.
Each cause has a different rhythm, and a revenue-linked repayment helps most when the swings are broad, not erratic.
How the category works
In revenue-based financing, what you repay in a given period is tied to what the business took in during it. A big month sends more, a small month sends less. This differs from a fixed monthly payment, which stays the same, and from a merchant cash advance, where remittances are usually daily or weekly and you should check how the total is set. We do not publish rates or terms here; nothing on this page is a quote.
- Helps when revenue varies a lot from month to month and you want repayment to flex.
- Hurts when the share taken is large relative to your margin.
- Neutral when sales are flat, since flexing buys you little.
A twelve-week test, for illustration
| Weeks | Deposits per week | Fixed payment of $1,500 a week | Flexible share of 10% |
|---|---|---|---|
| 1 to 4 (strong) | $20,000 | 7.5% | $2,000 |
| 5 to 8 (average) | $12,000 | 12.5% | $1,200 |
| 9 to 12 (weak) | $6,000 | 25% | $600 |
In this invented example the fixed payment is heaviest in the weak weeks, while the flexible share is lighter then and heavier in the strong weeks. Real agreements differ, and these figures are not our terms.
Questions to put to any funder in writing
- How is the share of revenue set, and can it change?
- What is the total repayment, and is there an end date?
- How is revenue measured: deposits, card sales or something else?
- What happens if revenue stops for a period?
The measurement question matters more than it looks. A business that takes cash, card and transfers can have a share applied to some of those but not others, and that changes the real cost.
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 merchant cash advance, term loans or working capital if you are unsure. Owners across San Bernardino County, including Redlands, Upland and Chino, can apply from anywhere in the county.