Alternative or creative financing can take several forms. Today I would like to briefly address Revenue Based Capital.
As this type of funding is based on the business’ revenue primarily, and not the credit score, it is well suited to address short term capital needs. Typically a business owner facing a temporary working capital shortage, will reach out and utilize this method. Unlike traditional bank funding, the FICO requirements are much more lenient, and since the decision is primarily based on recent revenue, the business owner is assured of an amount that their current cashflow can support.
It also boasts the benefit of being collateral free, so there is no need to tie up real estate. Additionally most funding’s can be completed and deposited into your business account within 24-48 hours.
Industries that benefit from, and are frequent clients: Construction, Food & Beverage, Retail, Trades, ie: HVAC, Electricians, Plumbers, Landscapers.
In closing, Revenue Based Capital shines due to it’s relaxed FICO requirements, collateral free features, and fast turn around.
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