Minimum six months company history
Details on revenue based advances:
Works well with seasonal businesses
Terms are for 4 -18 months
Rates are 1.22-1.45 factoring rates not APR
- Advance is uncollateralized
- Recent six months complete bank statements required
- Pre-approval letter is issued
- Funds are bank wired to client
Required paperwork from the applicant
1. Lease agreement
2. Voided check
3. Recent and complete business Bank statements
Close in two weeks
Average advance amount $50K
For larger advance request amounts business tax returns are required.
No upfront fees
Three Questions to Ask Yourself Before Getting a Revenue Advance
Revenue-based Advances can be a lifesaver for businesses. But like with all funding, planning is key to make sure the business funding you get is the best decision for your business.
With the goal of getting the best funding available for your business, here are three questions to ask yourself before getting a revenue-based advance:
1. Can I pay this advance back?
This seems obvious, but you’d be surprised how many people overlook it. Revenue advance repayment generally comes in the form of daily or weekly repayments that are automatically debited from your business bank account. For many businesses this is fantastic. They do a lot of sales everyday so a bit gone for daily repayment isn’t an issue without having to worry about writing out a check.
Advance offers will come with a daily payment amount (and sometimes even multiple payment amounts to choose from). Make sure this amount is manageable before diving in headfirst (hint: don’t forget to look at your key business metrics!).
2. How much will this funding grow my business?
The purpose of business funding is to invest that money so that you can earn even more. They key to all this is Return on Investment (ROI). This applies with all types of business funding and should absolutely be considered before accepting a revenue advance. ROI is the #1 most important thing to think about. Yes, more important than APR. If the funding you get is for something that will not increase your income, rethink your goal. If the funding will help you double your revenues, go for it.
3. When do I need money?
Time is always an important factor, because repayment is quick. Revenue advances are short-term loans, generally repaid over 3-12 months, which means you’re not straddled with long-term debt. This is perfect for short-term projects, although not exclusively.
One of the key benefits of revenue advances is how quickly they fund. If you need funding quickly, this is probably the best business funding option out there. No other form of funding can fund in less than a week. If you need money quickly, revenue advances are the way to go. If you need funding in 3-6 months, other options are available.
Choosing the right funding for your business can be tricky, but these three questions to ask yourself will get you on the path to business success.
