The principle
Under revenue-based financing, repayment follows the business's revenue. In a strong month more of the total is repaid; in a slow month, less. We do not publish rates or terms on this page since arrangements depend on the business. The benefit to the owner is a payment that does not ignore a bad month. The cost is a need to understand one's own sales pattern in detail.
Where it can suit Santa Ana
Santa Ana, population 310,227 in the 2020 census, is the county seat of Orange County. Its businesses include event caterers, schools' suppliers, wholesale distributors, retail shops and service trades. Many of them have waves in income: back-to-school buying, holiday orders, event seasons. A flat monthly payment set from a best-month figure is hard to carry in a worst month.
Fit check
- Regular receipts: there should be enough activity in your account to show a rhythm.
- Margin to share: any share of revenue going to repayment is not available for costs.
- A reason to grow: the money should be going to something that adds revenue, such as stock, marketing or a new hire.
Compared with a fixed payment
| Month | Revenue-linked | Flat payment |
|---|---|---|
| Busy | Pays down more | Same amount |
| Slow | Eases | Same amount, harder to meet |
| Whole year | Tracks the year's shape | Predictable but rigid |
If revenue is steady, term loans may be simpler. For frequent small gaps, look at a line of credit.
An illustration, with made-up numbers
Not our terms: a school-uniform and spirit-wear shop in Santa Ana does $20,000 a month most of the year and $70,000 in the two months before the school year. It borrows $40,000 to buy stock in the early summer. Revenue-linked repayment would take more in the busy months and little in the quiet ones. The owner then checks that the busy months really will cover the amount, and that a poor season would not leave a balance that stretches on indefinitely.
What the statements need to show
Revenue-linked repayment depends on visible revenue. Regular deposits with a few clear peaks are the easiest pattern to read. Statements with large personal transfers or long silent periods make the picture harder. If a month looks odd, a closed week or a refund wave for example, add a short note. Clear statements are the best thing an applicant can provide.
How to apply
We consider FICO scores of 500 and above, review about three months of business bank statements and need no tax returns. The application takes about five minutes with a soft credit pull. Funding runs from $25,000 to $5,000,000 and can arrive in as little as 24 hours. Sole proprietors can apply. Apply here. For a related option, see merchant cash advances in Santa Ana.