What it’s for
May fit an operating home-service business with a specific project, organized records, and an identifiable source for scheduled payments. This describes purpose fit—not funder eligibility.
- A defined materials purchase for booked work
- Adding a crew or expanding a service area
- A planned service-vehicle, capacity, or business-improvement project
- Refinancing qualifying business debt, subject to provider review
How it works
One fixed lump sum with a stated term. Terms are typically about 6–36 months, depending on the provider and proposed transaction.
Payments are generally scheduled weekly or monthly over the term, depending on the provider. Confirm the scheduled amount, total repayment, maturity date, and whether an early payoff changes the total amount due.
What funders look at
- Business deposit patterns and recurring revenue
- Time in business and business or owner credit
- Existing debt and current payment obligations
- The defined use of funds and the business's ability to support the scheduled payment
How repayment or collection works
Payments are generally scheduled weekly or monthly over the term, depending on the provider. Confirm the scheduled amount, total repayment, maturity date, and whether an early payoff changes the total amount due.
What it typically costs
Review the proposed rate or fee structure, total repayment, payment frequency, origination or closing fees, and prepayment provisions—not only the periodic payment.
What you'll need
The exact request depends on the business and transaction. These are common items to have ready for a provider conversation.
- Recent business bank statements showing deposit activity
- Business tax returns or financial statements, if requested
- A description of the planned use of funds
- Debt schedule or current payoff information and ownership details
Providers also commonly review: The purpose and amount requested; Deposit patterns and the cash flow available after existing obligations; Time in business, credit, and financial records; Existing debt, potential guarantees, liens, or collateral.
Watch-outs
Weekly or monthly payments must fit alongside payroll, materials, vehicles, taxes, and existing debt. A longer term can lower a scheduled payment while increasing the time and potentially the total cost of financing.
Some structures may be unsecured; others may require business assets, a lien, or a personal guarantee. Requirements vary by provider and transaction.
Another path to compare: For recurring needs or smaller draws, compare a business line of credit. For eligible tools or a service vehicle, compare equipment financing.