Revenue-based Financing

Sometimes, you just need $20,000 to run a marketing campaign.  Or you may need $45,000 to buy some inventory.  Or maybe your roof started leaking, or your AC system went down, and you need cash FAST to make repairs.  Or, maybe, you fall into an industry that traditional lenders just don’t understand or deem too risky, so they automatically disqualify you…because of your industry.  In these and many other situations, revenue-based financing can provide the working capital lifeblood you need.

Rapidly Respond

Revenue-based financing allows you to take advantage of opportunities that you otherwise would have had to miss out on because of a lack of available funds.

Both big and small disasters happen throughout the life of a business, revenue-based financing can quickly give you the money you need to quickly address any unexpected issues that arise.

Holistic Underwriting

Unlike traditional loans, a lower credit score will not automatically disqualify you. Revenue-based Financing looks at your business’s stability and success overall.

There are very few industry limitations with revenue-based financing and our financing specialists are trained to understand the ins and outs of many industries that are typically turned down for loans.

Personal Security

Absolute personal guarantees are not required, nor will your home be used as collateral.

Revenue-based financing is one of a few types of business financing that limits the personal exposure of the business owner and looks to the business – not personal assets or credit score – when making underwriting decisions.

Expedited Access

Because your sales history is the most heavily weighted when it comes to approval, there is very little documentation needed.  In some cases, all you will need to submit is three months of business bank statements.

With little documentation required, the underwriting process can be very quick, and you can receive approval in as little as three hours. Once approved, you can have the funds in your bank within 24 hours.

Revenue-based Financing is not a loan and therefore does not come with a fixed term or an APR.  Instead, with revenue-based financing, a party purchases the future output of a business at discount.  As you make those sales or your accounts receivable pay during your normal course of business, you pay a percentage of your revenue to the party that purchased your receipts.  In addition to this, there are a few major differences between revenue-based financing and loans:

Cost of Financing:

As with loans, there is a cost associated with revenue-based financing.  But, with this option, instead of an interest rate that accrues every day, it comes with a total, fixed cost of capital that remains the same regardless of how long it takes to pay it back.

Payments:

Traditional loans typically come with a fixed monthly payment for a fixed amount of time.  With revenue-based financing, you can:

• use a fixed ACH payment that debits an amount from your bank account based on the estimated receipts. ACH payments can be made daily, weekly, or biweekly.
• have your credit card processor split credit card batches and provide a percentage of revenue purchased to Kapitus. Split batch payments are made daily.
• use variable ACH payments where you link your bank account to Kapitus and our proprietary system will adjust your payment to your revenue every day.

With credit card splits and the variable ACH payments, the amount of your payment is based on a fixed percentage, so the amount can fluctuate.   If your sales are lower, your payment will be lower.  If your sales are higher, your payment will be higher.

Terms:

Loan terms are more rigid – if a payment is due that you cannot make you will be in default – and often come with a pre-payment penalty.  Because revenue-based financing is the purchase of a percentage of sales, there is no term and if the sales don’t materialize, you are not obligated, and because the cost is fixed, there are never pre-payment penalties assessed.

Of all of our financing options, revenue-based financing is the easiest to qualify for!  Depending on the amount you are looking to secure, the criteria is minimal with your sales history carrying the most weight:

• You must have a minimum personal credit score of 575
• Your business needs to have been operating for at least 1 year
• You need to have a minimum of $10,000 in monthly sales

Applying for revenue-based financing with Kapitus is fast and painless!  It should only take about 10-15 minutes to complete the application and provide the required documents.  To get started, simply fill out our online application, upload your three most recent bank statements…and you’re all set!  Once your package has been submitted, a Kapitus Financing Specialist will be in touch with a decision or, when necessary, to learn more about your business.

Kapitus’s revenue-based financing products are available to businesses in virtually every industry.  The industries that most frequently use revenue-based financing are:

• Personal Services
• Business Services
• General Contractors
• Restaurants
• Retail
• Specialty Trades

1. We silence the noise on the internet

There is SO. MUCH. INFORMATION. on business financing available through the internet.  Determining what information is correct, who is trustworthy, and what financing options are right for you can seem like an impossible task.  We’re here to put an end to the noise.  As specialists in the small business financing industry for close to 15 years, we’ve stayed on top of this ever-changing landscape, and our financing specialists rigorously trained to have in-depth knowledge on how each financing product works and the situations in which each product is best applied.

2. …And in your head

We value and use data just as much as the next guy.  But we also know that businesses are run by humans, and many times a fully data-driven scenario is not appropriate.  This is why we take a consultative approach when helping small businesses seeking financing.  We listen to your situation.  We get a thorough understanding of your needs.  We prioritize your wishes around the type of funding you are looking to acquire.  We put your mind at ease, by helping you find the best possible financing solution for your business.

3. No Financial Smoke & Mirrors

With Kapitus, what you see is what you get.  We believe in being up-front and transparent about every aspect of the application and funding process – from both the standard and one-time fees you may encounter to your cost of capital, to the repayment terms of your loan.