Revenue Based Financing
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Revenue Based Financing

Certain groups have been economically disadvantaged for generations. Revenue-based financing allows more flexibility than traditional bank debt with no equity dilution. It is like a term loan, but instead of a fixed payment every month, a percentage of revenue is paid toward the debt. When business slows down, a proportional payment schedule can relieve the borrower of that additional pressure. This structure offers a natural benefit for those whose business is seasonal or severely impacted by economic cycles. Smaller payments during slower revenue months and larger payments in stronger months simply makes sense.

Business Characteristics

  • Businesses with revenue of $1MM or higher
  • Ownership Requirements:
    • Woman owned
    • Minority owned
    • Veteran owned
    • LGBTQ+ owned
    • Companies located in low to moderate income areas
    • Companies that have committed to inclusive hiring initiatives
  • Profitable, break-even or clear path to profitability
  • Growing revenues or positive trends
  • Recurring contracts and predictable revenue models are a best fit
  • Time in business: 12 months minimum

Lending Criteria

  • Term: 2 – 5 Years
  • Funding amounts from $50K – $1MM
  • A portion of revenues will be paid monthly at a pre-established percentage until the principal and additional fees have been repaid
  • Typically, 3%-9% of monthly cash receipts pay back rate

Initial Underwriting Needs

  • 2 years of financial statements
    (Balance Sheet, P&L, Statement of Cash Flow) broken out by month
  • Revenue by customer
  • Debt schedule
  • Financial projections (if requested)

Contact us today for a free, no-obligation analysis of your financing needs.

A member of our professional staff will contact you to discuss your business’ short and long-term financial needs.