Revenue Based Financing

Revenue Based Financing

We realize the challenges faced by women, people of color, veterans and businesses in low to moderate income areas. Revenue-based financing allows more flexibility than traditional bank debt with no equity dilution. It is similar to a term loan, but instead of a fixed payment every month, a percentage of revenue is taken.

This allows for smaller payments during slower revenue months, and larger payments in stronger months.

Business Characteristics

• Businesses with revenue of $1MM or higher

• Ownership Requirements:

• Woman owned
• Person of Color owned
• Veteran owned
• LGBTQ+ owned
• Companies located in low to moderate income areas
• Companies that have committed to inclusive hiring initiatives

• Profitable, break-even or clear path to profitability
• Growing revenues or positive trends
• Recurring contracts and predictable revenue models are a best fit

• Time in business: 12-18 months minimum

Lending Criteria

• Term: 2– 5 Years
• Funding amounts from $50K- $1MM

• Revenue-Based Financing:

• A portion of revenues will be paid monthly at a pre-established percentage until the principal and additional fees have been repaid

• Typically 3%-9% of monthly cash receipts

Initial Underwriting Needs

• 2 years of financial statements (balance sheet, P/L, cash flow) broken out by month

• Revenue by customer
• Debt schedule
• Projections (if available)

 
 

Approvals in as little as 48 Hours!

Global Financial Services

290 Norwood Ave Suite 206 Deal, NJ 07723

Phone: 212-480-4900 • Fax: 212-482-6026

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