Where a new business can fit
Wikipedia says Stockton was founded in 1849 during the Gold Rush, grew as a logistics and commercial hub, and today has a diversified economy that includes manufacturing and telecommunications. It also describes comparatively inexpensive land as one reason companies set up regional operations here. For a founder, that points to two kinds of customer: businesses in the freight and distribution chain, and the households of a city of 320,804 people. The University of the Pacific, the oldest university in California per Wikipedia, adds a student and staff population.
| Start-up type | Spend before first sale | Who pays and when |
|---|---|---|
| Delivery or hauling company | Vehicle, insurance, fuel, first driver | Customer invoices, often weeks later |
| Food or retail counter | Build-out, equipment, first stock | Daily, slowly at first |
| Home-service or construction trade | Tools, truck, license, materials | Customers on completion or progress draws |
| Warehouse or packing subcontractor | Space deposit, equipment, labor | Monthly invoices to a larger company |
Work the first ninety days backward
- Total what must be paid before you open.
- Estimate how long collections take. A counter takes cash today; an invoice can take weeks.
- Add a buffer for a slow start.
- Separate what earns from what only costs. A truck can earn; a deposit cannot.
For illustration only, a founder starting a small delivery company might total $55,000 for a used van, insurance, fuel and two months of overhead, while first-month invoices cover $8,000 and pay in 30 days. The gap that funding bridges is not the $55,000 but the weeks between spending and the first payment. Round numbers, not our terms.
What a new account shows us
We ask for about three months of business bank statements, so open the business account early and run revenue and costs through it. We consider FICO 500 and up, do not require tax returns, and the application takes about five minutes with a soft credit pull. Funding runs from $25,000 to $5,000,000, and as little as 24 hours once approved. Sole proprietors can apply, so you do not need an entity in place first.
First-year mistakes to avoid
- Asking for the largest amount rather than what year-one sales can carry.
- Mixing personal and business spending in the account.
- Signing a long lease before there is proof of traffic or a contract.
- Buying inventory in bulk that ties up cash for weeks.
Related: equipment financing, working capital and San Joaquin County funding. When you are ready, apply.