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Revenue based loans can help you take care of immediate needs in your business, whether that is a cashflow shortfall or a new business opportunity. No collateral is required for these type of loans, therequired documentation is limited and perfect credit not needed. Nearly every industry can get shorttermfinancing.
What is a Revenue Based Loan?
Revenue based loan is an alternative to a traditional bank term loan. Revenue based loan is extendedbased on the monthly sales volume at your business, and not your personal or business credit history.The application and approval process is faster, and no collateral is required. This type of loan is availablewith terms from three to 24 months and it is generally repaid through automatic deductions from yourbusiness bank account.
How can I get a Revenue Based Loan?
Most industries can qualify for a revenue based loan and even businesses that have been open for asfew as three months can apply. You can request from $5,000 to $1,000,000; lenders will base theirdecision on your monthly sales volume. You’ll need to provide some documentation, but far less thanfor longer term loans: Expect to be asked for bank statements and a landlord reference. Some lenderswill require that your business is majority owned by a U.S. citizen or legal permanent resident.
How can I use revenue based loans?
You can use revenue based loans for almost any purpose, from working capital to inventory.