What is Revenue-Based Financing?
Revenue-based financing is a flexible funding option that enables you to secure capital without giving up equity in your business. With this model, you receive funds from a financing company in exchange for a percentage of your ongoing revenue.
Unlike a traditional loan, which require fixed monthly payments regardless of your business's performance, revenue-based financing allows your payments to fluctuate based on your revenue. When your business is thriving, your payments increase, and during slower periods, they decrease, offering a more adaptable solution for managing cash flow while repaying the financing.
Revenue-Based Financing Rates:
Revenue-Based Financing employs factor rates rather than conventional interest rates, with factor rates being straightforward decimal figures indicating the additional amount owed on the initial loan, determined through a risk assessment, typically ranging from 1.1 to 1.49.
Who Should Apply for Revenue Based Financing?
Revenue Based Financing is ideal for:
Revenue Based Financing is ideal for:
Revenue Based Financing is ideal for:
Revenue Based Financing is ideal for:
Revenue Based Financing is ideal for:
- Businesses with outstanding accounts receivable
- Businesses seeking fast funding
- B2C businesses requiring smaller amounts of funding
- Businesses with lower credit scores or lacking collateral, such as real estate and major assets
Revenue-based financing can benefit various industries, including construction companies, pharmacies, law offices, manufacturers, business services, and more. Regardless of your industry, our expert Funding Advisors will collaborate closely with you to select the best funding option to help your business achieve its goals without sacrificing cash flow.
How to Get Revenue-Based Financing:
- Apply: Gather 3-4 months of bank statements and other records. For faster approval, grant us secure access to your bank account's transactional data.
- Choose Funding: A Funding Advisor will reach out to you within 1 hour (during regular business hours) to complete your application and discuss your funding options.
- Get Funded: Once you and your Funding Advisor determine the suitable funding option for your business, your funds can be approved and deposited within 24 hours.
- Set Repayment: Payments will be automatically deducted from your business's daily or weekly debit and credit card sales, with amounts based on your sales volume.
How to Use Revenue-Based Financing
There are no restrictions on how revenue-based funding can be used. Funds received from revenue-based financing are typically best used to:
- Fill gaps in cash flow without committing to a long-term loan.
- Cover recurring expenses like payroll, rent, utilities, and more while awaiting full payment from clients.
- Fund growth strategies, new equipment, and other significant purchases with a strong return on investment.
- Seize seasonal business opportunities such as purchasing inventory in bulk.
Revenue-Based Financing Qualification Requirements:
At Alpha Capital Group, we focus on the overall health of your business, not just your credit score, as well as the payment history of your customers. Here are some factors we consider:
- Business revenue
- Cash flow
- Vendor payment history
- Years in business
- Public records
We do not require first position on revenue-based financing, and no additional collateral is necessary.
Tailored Revenue-Business Financing Solutions
At Alpha Capital Group, we understand that every small business is unique, and their financing needs may vary. That's why we offer customized funding solutions designed to meet your specific requirements.
Whether you require short-term funds for a quick capital infusion or a long-term financing option for substantial investments, we've got you covered. Our team collaborates closely with you to grasp your business goals and financial situation, ensuring you receive a financing solution that perfectly aligns with your needs and budget.
Legal and Compliance Transparency
Our unwavering commitment is to provide services in strict accordance with the regulations and laws governing the United States. Our Revenue-Based Financing solutions are meticulously crafted with a strong emphasis on transparency, fairness, and unwavering adherence to all relevant legal requirements.
The well-being of our valued clients is our top priority, and we consistently uphold the highest standards of ethical conduct throughout our operational processes.
