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 8% of a company's annual revenue, and loan amounts are available as high as $150,000. So you can get up to $150,000 with this program just because you have consistent revenue.

To qualify, a company must have current revenue. When you borrow money from a bank, you 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 many funding products available for you through the Business Finance Suite.

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.

Purchase Order Financing

Seasonal sales, business growth and expansion, and large orders can restrict business cash flow.

Many businesses want to pay on terms of net 30 or 60, but many of their suppliers demand payment on delivery.

At the same time, the business owner has to cover other expenses including shipping, labor costs, materials, packing, and many more, further restricting cash flow.

As a business owner, purchase order financing helps free up your business’ cash flow so you can grow your business and profits.

You can obtain funds based on outstanding orders with existing clients.

While a bank looks at your company's finances, these loans focus on the financing and credit of your customers.

This means this type of financing can be obtained even if you have damaged personal or business credit profiles.

There are a few different types of Purchase Order Financing currently available.

One option that is currently available is to obtain funds that are paid directly to your suppliers. You can receive advances up to 95% of the purchase cost to your supplier. The bank will then pay your supplier and you receive immediate access to your supplier’s goods. The bank will collect the invoice payments from you and will also pay you the balance between the order value and the amount paid to the supplier. You receive the net total minus any fees once payment has been received.

A second purchase order financing option is to issue a letter of credit to your suppliers. This letter is a commitment to pay the supplier on their fulfillment of certain conditions. The conditions are normally related to the supplier providing necessary documentation. These Letter of Credit are also governed by the regulations of the International Chamber of Commerce.

A third option is a Supplier Guarantee. This is a commitment to pay the supplier from the availability generated on the funding of the receivables when generated relating to the purchase transaction.

The amount of purchase order financing available to you will depend on the volume of outstanding purchase orders you have.

It is very practical to obtain over $500,000 in financing if you have that amount or greater in orders.

Funds can commonly be delivered within a week after approval, and interest rates and terms are typically very good. 

Expert Credit Consultants, LLC specializes in establishing business credit and funding using our exclusive Business Credit and Financing Suite as well as consumer credit restoration and optimization. www.ExpertCreditConsultants.com.