Business Revenue Financing
A great way for businesses to access money is through revenue-based financing. It's also sometimes referred to as revenue participation or revenue sharing funding.
Revenue financing is a loan to a company which is paid back through a royalty on the revenues. Typically this royalty is in the 2 to 5% range.
With revenue based capital, instead of selling ownership in your company you sell rights to a percentage of your company's revenue for some period of time.
Funding is commonly available up to 12% of a company's annual revenue, and loan amounts are available as high as $500,000. So you can get up to $500,000 with this program just because you have consistent revenue.
To qualify a company must have current revenue, over $10,000 monthly.
When you borrow money from a bank, they commit to repayment and commit to a specific rate of repayment.
One of the benefits of revenue funding is that it provides a variable payment.
If revenue goes down, your payment also goes down equivalent. This is extremely helpful in seasonal industries.
Another difference compared to a bank: lenders want a personal guarantee and collateral. If you default you may lose that collateral.
Revenue based financing typically has no collateral requirement. There are also no personal guarantee requirements for the founder unlike bank loans.
This funding can be used for many purposes including growth capital. And there are no restrictive covenants like bank loans.
Revenue Financing is one of many core funding products available for you through your Business Finance Suite.
Contact us today to learn more.
We are often asked for long-term loans and credit lines.
So we have searched the country to find reliable lending sources who can actually deliver these to you… at VERY competitive rates… without the headaches that typically come with conventional loans.
We’re proud to announce we’ve done it, we’ve found a reliable source that can deliver you both credit lines and long-term loans, both at competitive rates and area already closing loans with them now.
Here’s the details…
Bank Line-of-credit up to $100,000
You can get approved for a true business credit line equal to 10% of your gross annual sales as represented by your tax returns.
Rates are between 7-10% and you can get your funding in 30-45 days… MUCH faster than conventional and SBA loans.
To get approved you should have tax returns that show good gross sales and net profits, and an Experian FICO score of 700 or higher.
10 Year, Fixed Term Loan
Get approved for $50,000- $150,000 in the form of a long-term loan of 10 years. Your rates will typically be under 7%.
To get approved you should have tax returns that show good gross sales and net profits, and an Experian FICO score of 700 or higher.
And you’ll either need to own your building or have a lease on your building that’s as long as your desired loan term.
Think you qualify? To get approved gather the following income documents so we can obtain formal approval for you quickly…
888-684-8750 or firstname.lastname@example.org
One of our retail clients just received $48,000 in business credit lines to help grow their business!
They’re using the funds for working capital to help them stock up for their busy season.
Plus, these new accounts are reporting to the business credit reporting agencies, helping them build their business credit to get even more money in the near future. Don't you love it?
By Michael Snyder, on April 18th, 2016
The Dow closed above 18,000 on Monday for the first time since July. Isn’t that great news? I truly wish that it was. If the Dow actually reflected economic reality, I could stop writing about “economic collapse” and start blogging about cats or football. Unfortunately, the stock market and the economy are moving in two completely different directions right now. Even as stock prices soar, big corporations are defaulting on their debts at a level that we have not seen since the last financial crisis. In fact, this wave of debt defaults have become so dramatic that even USA Today is reporting on it…
Get ready to step over some landmines, investors. The number of companies defaulting on their debt is hitting levels not seen since the financial crisis, and it’s not just a problem for bondholders.
So far this year, 46 companies have defaulted on their debt, the highest level since 2009, according to S&P Ratings Services.Five companies defaulted this week, based on the latest data available from S&P Ratings Services. That includes New Jersey-based specialty chemical company Vertellus Specialties and Ohio-based iron ore producer Cliffs Natural. Of the world’s defaults this year, 37 are of companies based in the U.S.
Meanwhile, coal producer Peabody Energy (BTU) and surfwear seller Pacific Sunwear (PSUN) this week filed plans for bankruptcy protection. Shares of Peabody have dropped 97% over the past year to $2 a share and Pacific Sunwear stock is off 98% to 4 cents a share.
A lot of big companies in this country have fallen on hard times, and it looks like bankruptcy attorneys are going to be absolutely swamped with work for the foreseeable future.
So why are stock prices soaring right now? After all, it doesn’t seem to make any sense whatsoever.
And it isn’t just a few bad apples that we are talking about. All across the spectrum, corporate revenues and corporate earnings are down. At this point, earnings for companies on the S&P 500 have plunged a total of 18.5 percent from their peak in late 2014, and it is being projected that corporate earnings overall will be down 8.5 percent for the first quarter of 2016 compared to one year ago.
As earnings decline, a lot of big companies are getting into trouble with debt, and we have already seen a very large number of corporate debt downgrades. In recent interviews, I have been bringing up the fact that the average rating on U.S. corporate debt has now fallen to “BB”, which is already lower than it was at any point during the last financial crisis.
A lot of people don’t seem to believe me when I share that fact, but it is absolutely true.
One of the big reasons why corporate debt is being downgraded is because a lot of these big companies have been going into enormous amounts of debt in order to buy back their own stock. The following comes from Wolf Richter…
Downgrades ascribed to “shareholder compensation,” as Moody’s calls share buybacks and dividends, have been soaring, according to John Lonski, Chief Economist at Moody’s Capital Markets Research. The moving 12-month sum of Moody’s credit rating downgrades of US companies, jumped from 32 in March 2015, to 48 in December 2015, and to 61 in March 2016, nearly doubling within a year.
The last time the number of downgrades attributed to financial engineering reached 61 was in early 2007. It would hit its peak of 79 in mid- 2007, a few months before the beginning of the Great Recession in Q4 2007. At the time, stocks were on the verge of commencing their epic crash.
When corporations go into the market and buy back their own stock, they are slowly cannibalizing themselves. But we have seen these stock buybacks soar to record levels for a couple of reasons. Number one, big investors want to see stock prices go up, and so big investors tend to really like these stock buybacks and will generally support corporate executives that wish to engage in doing this. Number two, if you are a greedy corporate executive that is heavily compensated by stock options, you very much want to see the stock price go up as well.
So the name of the game is greed, and stock buybacks have been fueling much of the rise in U.S. stock prices that we have been seeing recently.
However, the truth is that nothing in the financial world lasts forever, and this irrational bubble will ultimately come to an end as well.
Earlier today, I am across an article that included a comment from Michael Hartnett of Bank of America Merrill Lynch. He believes that there are a lot of parallels between what is happening today and the period of time that immediately preceded the bursting of the dotcom bubble…
Back then, as could be the case today, a bull market & a US-led economic recovery was rudely interrupted by a crisis in Emerging Markets. The crisis threatened to hurt Main Street via Wall Street (the Nasdaq fell 33% between Jul-Oct 1998, when [Long-Term Capital Management] went under). Policy makers panicked and monetary policy was eased (with hindsight unnecessarily). Fresh liquidity combined with apocalyptic investor sentiment very quickly morphed into a violent but narrow equity bull market/bubble in 1998/99, one which ultimately took valuations & interest rates sharply higher to levels that eventually caused a “pop”.
Like Hartnett, I definitely believe that a major “pop” is on the way, although I would like for it to be delayed for as long as possible.
Someday we will look back on these times with utter amazement. It has been absolutely incredible how the financial markets have been able to defy economic reality for so long.
But they can’t do it forever, and according to a brand new CNN survey Americans are becoming increasingly pessimistic about where the real economy is heading…
In a new CNNMoney/E*Trade survey of Americans who have at least $10,000 in an online trading account, over half (52%) gave the U.S. economy as a “C” grade. Another 15% rated the economy a “D” or “F.”
This gloom persists despite the fact that the stock market is on the upswing again. The Dow topped 18,000 Monday for the first time since July 2015.
If some Americans think that the U.S. economy deserves a “D” or an “F” grade right now, just wait until they see what is in our immediate future.
Personally, I give our economy an “A” for being able to maintain our unsustainable debt-fueled standard of living for as long as it has. Somehow we have managed to consume far more than we produce for decades, and the largest debt bubble in the history of the planet just keeps getting bigger and bigger and bigger.
Of course we are very much living on borrowed time at this point, but I truly hope that the bubble economy can keep going for at least a little while longer, because nobody should want to see what is coming afterwards.
If you've ever had credit problems, you have probably experienced the difficult process of attempting to fix errors and problems on your personal credit reports. For business owners building business credit, personal credit is definitely a concern. This especially applies to those with lower personal credit scores. As a business owner, it's wise to fix your personal credit and/or make sure it is in the best shape possible.
However, repairing credit and addressing the errors and issues that occur on personal credit reports is often more difficult than people anticipate.
While the Fair Credit Reporting Act requires the credit bureaus to conduct a "reasonable reinvestigation" into consumer disputes, what actually happens is probably somewhat short of that goal.
When a consumer sends a dispute, the credit bureau converts their dispute into one of a few numeric codes that describe the category of the dispute. Then (in about 85% of cases--the other 15% are either rejected, corrected, or otherwise resolved internally by the credit bureaus) the numeric code is sent to the creditor through an electronic system called e-OSCAR, and the creditor then responds and tells the credit bureau whether the information is accurate or not.
That's the gist of it.
The problem is that the "investigation" done by the creditor is typically just a check of the information being disputed against their own records. Since the information being disputed actually came from their own records in the first place, there is little chance that they are going to discover something wrong or mismatched through this method of investigation.
Consumer advocates have long lamented this shoddy investigation system, and the government is slowly starting to listen. A 2012 report by the Consumer Finance Protection Bureau covered many details of the consumer credit reporting system and the dispute resolution practices of the credit bureaus and creditors.
Rental investors who are self-employed or have multiple mortgages face a set of challenges and requirements that do not apply to other residential real estate buyers. Those challenges are now being addressed to help investors meet their goals, from creating an income stream that can ensure a more comfortable retirement to building a substantial portfolio of residential holdings.
ASSET BASE LENDING
Foundation Loan Program $25,000 - $750,000
Our newest offering is dedicated to helping rental investors who desire to unlock equity and improve cash flow. Advantages include, a Streamline investor approval process; Underwriting with no personal income verification, individual tax forms or W-2’s (subject to credit approval); No capital gains on refinances, and of course, competitive pricing.
Portfolio Loan Program $1M+ and 10+ Units
All programs are subject to minimum credit score of 660 FICO
Lending is based on cash flow of the property, so no personal income verification is required for loan approval.
Call us and we can discuss if any of our funding programs fit your needs!
This Meineke franchise client just received $80,000 in funding from a cash flow advance and closed the transaction within 72 hours!
They are excited to use their funding to purchase new equipment in their mechanics shop to aid in growth.
Here’s the scoop, unsecured financing might just be perfect for your business.
Here’s why you might want unsecured financing:
Other D & B Credit Scores
Dun & Bradstreet offers several credit scores for businesses.
Their most popular credit score is the Paydex score which ranges from 0-100. This is the main credit scoring model used today in the business scoring world. Outside of this score, D&B offers some other scores that not a lot of people know about.
Once of these scores is known as the Supplier Evaluation Risk Rating (SER). This rating predicts the likelihood that a company will file for bankruptcy and cease operations within the next 12 months
This score ranges from 1-9, with 1 being the lowest risk and 9 being the highest. D&B also offers a score known as the Supplier Stability Indicator (SSI).
This model predicts the likelihood that a supplier will encounter a large and significant financial or operational stress over the next 90 days. This score ranges from 0-10 with 0 being the lowest risk and 10 the highest.
Keep your eye out for all three of these scores. If you look at your full credit report with Dun & Bradstreet, you will commonly see a few scores on your report, not just one. So now you will know exactly what each of these scores truly reflects.
Your Lender May Owe You Money
If You Attempted a Loan Modification, a Short Sale, or tried a Workout Program or gave back the Bank/Lender your home, via a Deed-In-Lieu, within the past 2 years, you may be entitled to a Financial Settlement from your Bank or Lender regardless whether your attempt was successful or not.
What is this about?
This is a program that could pay YOU for violations your Bank/Lender or Mortgage Company may have made when you attempted any form of Loss Mitigation or tried to save your home from Foreclosure. This is a little known Government Act that outlines service and response metrics that the Banks and Lenders must adhere to when they process these request. If they do not comply, the Act state that the homeowner is entitled to financial compensation as the Bank / Lender is penalized for those violations.
This applies to anyone who attempted a Loan Modification, tried a Workout Program with the Bank/Lender, did a Short Sale or gave the property back with a Deed-in-Lieu. It is time frame sensitive. Any of these options had to be started after January 10,2014, or at least in process as of January 10, 2014, and going forward. There are conditions for Loan Modifications that began prior to that date and you continued to live in the property going forward into January 10, 2014 to also be considered for this program.
This program costs nothing out of pocket or to apply to find out if you're entitled to any Compensation. The benefits are purely financial to you. There are NO guarantees that any violations will be found, however each violation is worth $2,000 and based on what we have seen so far, the average file has between 5 - 10 violations. Since it is worth it to at least see if any violations occurred why not call now to get the the process moving forward.
I am sure you may have more questions or want to know what is involved, so please do not hesitate to contact our office and ask for more information. Hit our contact button and provide the necessary initial request and we will email you back the flyer with answers to most questions and the initial start-up form.
Trevana Properties is a placement company working with a variety of hedge funds, REIT's, commercial banks, specialty boutique lenders, private investors and other funding sources not widely known to the general public.