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)