A plain definition
Under revenue-based financing, what you repay in a period moves with what the business earned in that period. A strong month sends more; a slow month sends less. A fixed monthly payment asks for the same in both. We do not publish rates or terms on a web page, and nothing here is a quote.
Revenue that follows freight, crops and projects
Wikipedia describes Stockton as a logistics and commercial hub that grew up around the San Joaquin River, irrigation, rail connections and the Port of Stockton, with an agricultural history and a manufacturing and telecommunications presence today. Revenue for businesses linked to that economy moves with things the owner cannot control:
- Carriers and delivery firms follow shipper volumes and contract renewals.
- Ag-service and supply businesses follow planting and harvest windows.
- Construction trades follow permits, weather and the start dates of larger jobs.
- Neighborhood retailers and restaurants follow foot traffic, school terms and paydays.
A test of fit, for illustration
Take your last twelve weeks of deposits. Suppose they range from $6,000 to $19,000. A fixed payment sized to the average of about $12,000 will feel heavy in the $6,000 weeks, and flexible repayment may suit better. If every week sits near $12,000, flexibility buys little and a simple fixed structure may cost less overall. This is a thinking aid with invented numbers, not an approval test.
Three structures compared
| Shape | Where it helps | Where it hurts |
|---|---|---|
| Fixed monthly payment | Easy to plan when revenue is even | A slow month owes in full |
| Share of revenue | Moves with the business | Cash leaves often; the total repaid may be higher |
| Revolving draw | Pay only for what you use | Needs discipline with a balance always available |
See term loans and merchant cash advances for comparison; they are related but different products.
Questions to ask before choosing it
- What is the full amount you will repay, and is there a cap or a minimum?
- How is revenue measured: deposits, card sales or invoices issued?
- How often does money leave the account, and what happens in a week with no deposits?
- Can you repay early, and does that change the total?
Bring the answers to the application and we will read them against your actual statements. Owners in Lodi, Tracy and Manteca follow the same steps.
Applying
We fund $25,000 to $5,000,000, in as little as 24 hours once approved. We consider FICO 500 and above and ask for about three months of business bank statements; tax returns are not required. The application is about five minutes with a soft credit pull, and sole proprietors can apply. Start on the application page, or read about the region first at Central Valley North funding.