Revenue-Based Funding
This program is designed to help you get funding based on your business revenue only, and you can be approved even if you are a brand new
startup business in business at least 3 months. The lenders typically will not ask for business plans, resumes, or any other of the documents so commonly requested with conventional bank funding.
This program is as close to a “no-doc” program as you can get with business funding.
Approval amounts range from $5,000-$500K based on the amount of current revenue your business reflects on your business bank statements. To determine your approval amount the lender will review 3-6 months of your bank statements. If your statements reflect you earn more than $120,000 in revenue, if you don’t have a lot of Non-Sufficient-Funds showing on your banks statements, and if you are processing 20 or more transactions in a month, you stand a great chance of being approved.
Loan terms are typically between 6-18 months and you can be approved with as low as a 450 consumer credit score. To pay back the loan they will collect a portion of your future revenue until the loan is paid back in its entirety. This is a nice benefit as if your revenue drops in a month, so will your repayment obligation.
This is an exceptional funding program for any business that has consistent revenue each month, even if you don’t have financials to supply. All that is reviewed for approval is your bank statements and sometimes your merchant statements. So if those statements are solid, you stand a great chance of being approved.
Alternative financing can be the best solution for businesses that have been rejected or just want a more flexible funding system than a traditional bank loan. Revenue-based funding, which is growing in popularity, is best for businesses that want a lender who will take into account their actual revenue. This means business owners can focus on their work, secure in the knowledge that revenues will pay back the loan.
Who Should Do It
This financing system is best for new business owners who don’t have much collateral. The small business eager to expand or improve their current situation has now the opportunity to get funds for purchasing inventory, facility expansion or launching a marketing campaign. Because this is a true loan, the business credit score will also improve.
What are 5 quick benefits of RBF?
1. RBF allows startups to immediately leverage future revenue streams;
2. Most RBF agreements don’t require personal liability on the part of the entrepreneur;
3. Where it makes sense, RBF allows businesses to raise capital without taking onerous bank covenants (debt) and without giving up precious ownership of their businesses (equity);
4. Flexible payments (a percentage of sales); and
5. RBF aligns the entrepreneur and investor around growing sales (rather than creating conflicts of interest around personal liability or a quick exit).
Additional Benefits To Business Revenue Lending
Many of our partners will allow the business owner to “re-up” once 50% of the balance on the loan is paid off. So business owners can add additional funds into the business account if need be. This allows someone with troubled credit, trouble bank statements, a restricted industry etc. to access additional funds where the alternative would be a bank turndown.
MORE BENEFITS:
ü NO OUT OF POCKET COSTS!
ü NO MONTHLY PAYMENT!
ü NO BALLOON PAYMENT!
ü NO MERCHANT PROCESSING!
ü PAY BACK VIA DAILY ACH INSTEAD OF ONE LARGE MONTHLY PAYMENT (5 Days a week)
ü NO TAKING MONEY FROM YOUR CREDIT CARD INCOME LIKE MERCHANT CASH ADVANCES! CRITICAL FOR YOUR CASH FLOW!
Loan Approval
Depending on where you apply, terms will vary. Our clients can receive as much as $1 million dollars and terms up to 18 months with revenue-based financing. Quick approvals are common with this form of financing, usually within 24 hours. Funding the loan can take as little as 2 to 7 days from start to finish.
Revenue-based financing can make all the difference to new entrepreneurs who have high gross margins or revenues, but little collateral. Bank loan alternatives are just a new way for entrepreneurs to make their dreams come true. As long as you read the details of the agreement and assess your past financial history, alternatives may be the way to go.
The Client borrows 5% to 20% (often up to 100% of the monthly bank deposits) of the annual gross flowing through the bank account. The loan is repaid daily or weekly by ACH payments. This is a loan NOT a merchant cash advance.
Criteria:
1) 6 months bank statements showing minimum of $10,000.00 monthly
2) Minimum 450 credit score
3) Copy of state issued ID
4) Copy of business license or professional license
5) Voided business account check
6) Copy of terms & signature page of business lease agreement.
7) Complete application
8) Most current business tax return
No upfront fees! Flexible Terms, Close in Days
Click to apply online now!
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