Revenue-Based Financing in Auburn, WA
Revenue-based financing funds an Auburn business now and takes a share of monthly revenue until a set cap is paid back. One application, several funders.
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What should an Auburn owner know about how it works?
Revenue-based financing is a lump sum repaid as a set share of monthly revenue until a set total, the cap, is reached; the example below uses 7% of revenue.
How do funders decide?
How revenue moves with slow weeknights and busy weekend rushes, and whether an average month can carry the share.
When does the funding end?
Once the cap is reached. With $38,500 funded at a 1.25 cap, payments stop when $48,125 has been paid back, however long that takes.
Where does revenue-based financing fit in Auburn's economy?
Restaurants are the biggest of these trades locally, with 86 of the city's 1,908 employer companies. That works out to 22.1 employer companies per 1,000 residents; 57% of them have fewer than five on payroll.
| Trade | Businesses in Auburn | Per 10,000 residents | U.S. per 10,000 |
|---|---|---|---|
| Restaurants | 86 | 10.0 | 15.4 |
| Beauty and nail salons | 29 | 3.4 | 3.4 |
| Clothing and accessories stores | 26 | 3.0 | 3.5 |
How does revenue-based financing fit restaurants?
Lean months from tourist seasons, holidays and the weather cost a restaurant less under a revenue share. Auburn counts 86 of them, 4.5% of local employers.
What does revenue-based financing solve for beauty and nail salons?
For a salon, busy holiday weeks and quieter late-winter months decide the month; the payment follows. Census counts 29 in Auburn; that's 3.4 per 10,000 people.
When do clothing and accessories stores reach for revenue-based financing?
Uneven months from holiday shopping and seasonal changeovers are the case this structure is built for, and a clothing store has them. Auburn has 26 of them, 3.0 per 10,000 residents (U.S.: 3.5).
How would the numbers look for a restaurant?
A restaurant averaging $86,000 a month takes $38,500 with a 1.25 cap. At 7% of revenue, an average month pays $6,020 and a month 30% lower pays $4,214.
| Example item | Value |
|---|---|
| Average monthly revenue (example) | $86,000 |
| Amount funded | $38,500 |
| Cap | 1.25 |
| Total repaid | $48,125 |
| Revenue share | 7% |
| Payment in an average month | $6,020 |
| Payment 30% below average | $4,214 |
| Payment 30% above average | $7,826 |
| Months to repay at average | 8.0 |
What drives the total cost?
You're comparing two numbers: the cap, which is the total cost, and the share, which decides how fast it's paid. Steady revenue history earns the lower caps. Run your figures in the factor rate calculator.
Free to apply. You never pay us a fee. We call back, usually the same business day.
How do Auburn owners apply for revenue-based funding?
- Fill out the short application with your recent monthly revenue.
- We talk through the share, such as 7% in the example, and how it lands in your slowest month.
- You compare caps, such as the example's 1.25, and sign the best fit.
When is revenue-based financing the wrong choice?
If you already carry several advances, consolidation comes first. If margins are thin, even a small share can pinch in a slow month; a line of credit lets you borrow only for the gap.
Do we take files from around Auburn?
Kent is the closest, 6 miles away.
| City | Distance | Employers |
|---|---|---|
| Kent, WA | 6 miles | 3,266 |
| Federal Way, WA | 6 miles | 2,433 |
| Des Moines, WA | 8 miles | 561 |
| Puyallup, WA | 9 miles | 847 |
Before RBF, what do Auburn owners check?
Can a seasonal business get RBF?
Yes; seasonal revenue is what the structure is built for. Funders look at the full year, not just the busy months.
How much would I pay on RBF in a slow month?
In the example, a month 30% below average pays $4,214 instead of $6,020.
Do funders offer RBF to Auburn beauty and nail salons?
They do. With 29 beauty and nail salons in Auburn, funders see these files regularly; the offer depends on deposits and time in business, not on the trade alone.
Looking at a revenue-based advance in Auburn?
Applying is free, and you never pay us a fee. Call 877-FUND-654 with any question. We call back, usually the same business day, and we talk with you before your file goes to any funder.