UBJ Staff • August 17, 2026

Beyond the Bank: Alternative Funding Options for Inland Empire Small Businesses

For Inland Empire small business owners, a bank denial can feel like the end of the road—especially when customers are waiting, contracts are available and growth opportunities require immediate capital. A business may be too new to meet traditional lending requirements. Revenue may fluctuate throughout the year. The owner’s credit profile may not fit a bank’s underwriting standards, or the application process may take longer than the opportunity allows. But a bank’s “no” does not necessarily mean the business cannot move forward.


A business may be too new to meet traditional lending requirements. Revenue may fluctuate throughout the year. The owner’s credit profile may not fit a bank’s underwriting standards, or the application process may take longer than the opportunity allows.

But a bank’s “no” does not necessarily mean the business cannot move forward.

Alternative financing can provide entrepreneurs with access to capital based on invoices, purchase orders, sales revenue or other business activity. These funding tools may help a company stabilize cash flow, fulfill a contract, purchase inventory or respond to an opportunity that cannot wait several months for approval.

They can also be more expensive than traditional loans. Business owners should carefully review the fees, repayment terms and potential risks before signing an agreement.

Here are three alternative financing options Inland Empire businesses should understand.

1. Factoring: Turning Unpaid Invoices Into Working Capital


Factoring, also known as accounts receivable financing, allows a business to receive cash from an invoice before the customer pays it.

How it works:

A business completes a job or delivers goods and sends an invoice to its customer. A factoring company purchases the invoice and advances a percentage of its value, sometimes within 24 to 48 hours.

When the customer pays the invoice, the factoring company releases the remaining balance to the business after deducting its fees.

Why businesses consider factoring

Factoring can:

  • Provide faster access to working capital
  • Base approval largely on the customer’s ability to pay
  • Help cover payroll, supplies and operating expenses
  • Reduce the wait between completing a job and receiving payment
  • Provide funding without taking out a traditional long-term loan


Factoring may be particularly useful for contractors, staffing firms, transportation companies, manufacturers, consultants and service providers that regularly invoice established customers.

Before entering an agreement, business owners should determine whether the factoring arrangement includes recourse, meaning the business may remain responsible if the customer does not pay.

2. Purchase Order Financing: Funding the Order Before It Is Filled


Purchase order financing is designed for businesses that receive a confirmed customer order but do not have enough cash to purchase the inventory or materials needed to fulfill it.

How it works:

A customer submits a legitimate purchase order. The financing company then pays the business’s supplier directly for the products, materials or inventory needed to complete the order.

After the goods are delivered and the customer pays, the financing company deducts its fees and releases the remaining proceeds to the business.

Why businesses consider PO financing

Purchase order financing can:

  • Help a company accept larger orders
  • Provide capital without requiring the owner to pay suppliers upfront
  • Support businesses that do not qualify for conventional financing
  • Prevent a business from turning down a valuable contract
  • Help a growing company build relationships with larger customers


This option may work well for wholesalers, distributors, importers, manufacturers and other product-based companies.

Business owners should confirm that the profit margin on the order is large enough to cover financing costs and still produce a worthwhile return.

3. Revenue-Based Financing: Repayment That Follows Sales


Revenue-based financing provides a business with upfront capital in exchange for a percentage of future revenue until an agreed-upon repayment amount is reached.

How it works:

The financing company advances the funds. The business then repays a percentage of its weekly or monthly revenue.

When sales decline, the payment may decrease. When sales increase, the business generally repays more.

Unlike an equity investor, the financing company does not typically receive ownership in the business.

Why businesses consider revenue-based financing.

This option can:

  • Provide capital based primarily on sales performance
  • Adjust payments as revenue rises or falls
  • Allow owners to retain control of their companies
  • Offer an alternative for businesses with consistent deposits but limited credit history
  • Provide funding more quickly than some traditional loan programs


Revenue-based financing may appeal to restaurants, retailers, salons, wellness companies, e-commerce businesses, subscription services and other companies with consistent sales.


However, convenience can come at a significant cost. Owners should calculate the total repayment amount—not just the weekly or monthly payment—and determine how the withdrawals may affect daily cash flow.

Alternative Financing Can Be a Strategy—Not Just a Last Resort


Alternative financing is sometimes viewed as funding for businesses that cannot qualify for anything else. In practice, it can also be a strategic tool when timing, flexibility or the structure of a transaction matters more than obtaining the lowest possible interest rate.

For minority-owned, women-owned, veteran-owned and family-owned businesses that have historically faced barriers to capital, these options may help close the gap between having an opportunity and being financially positioned to pursue it.

Used responsibly, alternative financing may help a business:

  • Improve short-term cash flow
  • Fulfill larger contracts
  • Purchase inventory or materials
  • Respond to time-sensitive opportunities
  • Build a stronger operating history
  • Reduce dependence on slow approval processes

The goal should not simply be to obtain money. The goal should be to secure the right capital, at the right cost, for a clearly defined business purpose.

Questions to Ask Before Accepting Alternative Financing


Before signing an agreement, business owners should ask:

  • What is the total amount I will repay?
  • What fees will be charged?
  • How often will payments be withdrawn?
  • Is a personal guarantee required?
  • What happens if my customer pays late?
  • Can the financing company place a lien on my business assets?
  • Is there a penalty for early repayment?
  • Will the financing improve or strain my cash flow?
  • Is the expected profit from the opportunity greater than the cost of the financing?


Owners should also consider reviewing the agreement with an attorney, accountant or trusted business adviser.


When the Bank Says “No,” Explore the Full Capital Landscape


A traditional bank loan remains one of the most affordable funding options for many businesses, but it is not the only option.


Entrepreneurs may also explore Community Development Financial Institutions, credit unions, SBA-backed lenders, microloan programs, local revolving loan funds, grants and business-development organizations before selecting a higher-cost financing product.


For Inland Empire businesses facing an immediate cash-flow challenge or a time-sensitive opportunity, factoring, purchase order financing and revenue-based financing may provide a path forward.


The key is to understand the numbers, compare multiple offers and choose financing that strengthens the business rather than creating a new financial burden.


The BBOP Center assists Inland Empire entrepreneurs with understanding capital options, preparing for funding and identifying financial strategies that support sustainable growth.

California’s New Digital Products Tax: What Software Sellers and Buyers Need to Know Before 2027

By Kim Anthony • September 25, 2026
Beginning January 1, 2027, California sales and use tax will generally apply to prewritten software delivered electronically or accessed remotely, including many Software-as-a-Service subscriptions. CALIFORNIA — If your business sells software, provides access to an online platform or pays for software subscriptions, a tax change belongs on your 2027 planning list. Under Senate Bill 122 , signed into law June 29, 2026, California is expanding the sales and use tax definition of tangible personal property to include certain digital products and associated copyright or patent interests. That means retail sales of covered products in California—and covered products purchased from a retailer for storage, use or other consumption in California—may be taxable beginning January 1, 2027 . The change generally affects sellers of prewritten software, SaaS providers, businesses that license or provide remote access to prewritten software, and the customers who buy those products. What counts as a digital product? For this law, a digital product is prewritten computer software delivered on physical storage media, transferred electronically or accessed remotely. Prewritten software is software held for general or repeated sale or lease. It can qualify even if it was originally developed for a particular customer or for a company’s own use. A combination of two or more prewritten programs can also qualify. What is outside this definition? The law does not classify every digital purchase as a taxable digital product. The following are excluded from its digital product definition: Digital assets, such as cryptocurrency Digital audio works, such as music, spoken recordings and ringtones Digital audiovisual works, such as movies and videos with sound Digital books, or eBooks Digital infrastructure, such as cloud platforms customers use to create, deploy or run their own software applications Digital video game products Digital visual works, such as computer-generated artwork The law also provides exemptions for custom computer software , digital products representing a service other than SaaS, digital products transferred with reproduction and distribution rights, and digital products purchased solely for use outside California. Businesses should review the details of a transaction before treating it as excluded or exempt. A $5 million rule for certain large purchases In some transactions, responsibility for paying the tax can shift from the retailer to the purchaser. The rule concerns a retailer’s aggregate gross receipts from digital products sold to the same purchaser that are transferred electronically or accessed remotely. For 2027 , the threshold is more than $5 million in that calendar year . Beginning January 1, 2028 , the test looks at whether those receipts exceeded $5 million in the current or preceding calendar year. When the rule applies, the purchaser may need a Use Tax Direct Payment Permit and may have to report and pay the tax directly to the California Department of Tax and Fee Administration (CDTFA). Location matters for local taxes For digital products transferred electronically or accessed remotely, the place of sale for local and district tax reporting is generally the customer’s address. The place of use is where the person accessing the product is located. That distinction matters when a company’s billing address and its software users are in different places. CDTFA explains the rules in its Tax Guide for Retailers and Purchasers of Digital Products . What sellers need to do California digital product sellers that are not already registered with CDTFA may need to obtain a seller’s permit , file sales and use tax returns, and report and pay tax on taxable retail sales. Out-of-state sellers that are engaged in business in California under Revenue and Taxation Code section 6203 may need a Certificate of Registration—Use Tax . They would collect and report use tax on covered sales to California consumers and pay it to CDTFA. Registration is available through CDTFA Online Services . The UBJ takeaway: Software sellers can use the months before January 2027 to review their products, customer locations, invoicing and registration needs. Buyers can review their software agreements and ask vendors how the new tax will appear on invoices. For the definitions, exemptions and reporting rules, start with CDTFA’s digital products tax guide

Meet the Strategist Who Sees Opportunity Where Others See Obstacles

By Kim Anthony • September 24, 2026
Beverly Kuykendall helps businesses navigate complex markets, build stronger partnerships and turn ambitious ideas into workable plans. Some business leaders see a procurement requirement and stop at the obstacle. Beverly Kuykendall asks what it would take to move forward. Over decades in federal acquisition and commercialization, Kuykendall has helped organizations work through the demands of government contracting while keeping their commercial goals in view. Her career has included executive roles as President of Government Business, Chief Strategy Officer and President. In each, she has worked at the point where strategy must become something a team can actually execute. Today, Kuykendall advises mission-driven organizations and manufacturers seeking new routes to growth. For companies pursuing domestic production, that may mean beginning with practical steps such as packaging, labeling, kitting, light assembly or fulfillment. These staged solutions can help a manufacturer establish domestic capacity and enter a market while building toward a larger goal. She also helps manufacturers develop reseller and distribution programs with clear standards for selecting partners, onboarding them and measuring performance. The aim is to grow revenue while protecting the relationships and reputation a business has worked hard to build. Kuykendall’s strength lies in making complicated systems understandable and actionable. She sees how procurement rules, supply chains and commercial partnerships fit together—and where an organization can make its next move with confidence. For entrepreneurs and business leaders trying to enter a demanding market, that perspective matters. A complex path can still be a path. Kuykendall’s work helps organizations find it, prepare for it and take the next step.

Meet the Design Visionary Bringing Artistry to the World’s Most Memorable Spaces

By Kim Anthony • September 24, 2026
Felecia Fisher-Shamu has built a women-owned furniture manufacturing business whose work reaches from Los Angeles hotels to destinations around the world. Before Felecia Fisher-Shamu’s work appeared in luxury hotels and major entertainment venues, she was building relationships with the people who knew those spaces best: hotel engineering and housekeeping teams in Santa Monica and Los Angeles. She listened, learned what the work demanded and built a business around delivering it well. Today, Fisher-Shamu is CEO and co-founder of Vitality Casegoods, Restorations, and Furniture Manufacturing, Inc. In a competitive industry where women business owners have had to establish their place, she has earned a reputation for custom furnishings, furniture design and restoration. She has done it with creative vision, perseverance and a team of skilled craftspeople. Vitality’s work has reached properties in the United States, Anguilla, Saudi Arabia and Canada. Fisher-Shamu has contributed to sustainable projects with Google and ARIA in Las Vegas, as well as furnishings for major hotels and entertainment spaces. Her team’s work has also supported events associated with the NAACP Image Awards, the Daytime Emmys and Oscar celebrations, including a VIP gala honoring Black Panther costume designer Ruth E. Carter. Her passion for restoration gives the business another dimension. Vitality helped restore antiques from Paris for Lumière at the refurbished Fairmont Century Plaza in Los Angeles. Earlier in her career, Fisher-Shamu restored antiques for the Four Seasons Hotel Beverly Hills. She values the artistry in preserving a piece’s character as much as the skill required to create something new. Even during the pandemic, when the hospitality industry faced extraordinary disruption, Vitality continued to win work. Projects included SoFi Stadium’s Owners Club, Loews St. Louis Live! hotel and Circa Resort & Casino in Las Vegas. Fisher-Shamu’s story celebrates what a woman-owned business can build through talent, trusted relationships and the determination to keep going. Her furnishings may be found in celebrated spaces, but the deeper achievement is the enterprise she and her team have crafted along the way.
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