Revenue Based Business Loans

REVENUE BASED LOANS

Unsecured business loan based on business history and not credit score!

What is a Revenue Based Loan?

A Revenue Based Loan, called a Revenue Based Finance, is a transaction is which a business sells a percentage of sales over a period of time in exchange for up-front capital.

With a Revenue Based Loan, a business can secure as much as $2 Million in funding in as little as 72 hours with minimum paperwork, no collateral, and with owners credit history posing no obstacles.

A Revenue Based Loan is technically NOT a business loan. Business loans have a fixed repayment plan with a set interest rate so the loan payment is the same every month. A revenue based financing, however, is an agreement to purchase a portion of a business' future sales at a discount in exchange for up-front working capital. The lenders recover their money by taking a percentage of each month's sales revenues, so the amount paid back is greater in months where sales are higher and lower in months where sales lower.

This variable payment structure is one of the great appeals of the revenue based loan and merchant cash advance, especially for seasonal businesses and companies where sales tend to fluctuate greatly from month-to-month and are difficult to predict. The revenue based loan is also a great option for online businesses and other businesses that generate revenue but don't have the hard assetts that banks require for collateral.

The funds received can be used for things like marketing, purchasing new supplies & equipment, business expansion, and emergency needs such as the ability to meet payroll or make rent. A merchant cash advance, however, is generally not a good option for consolidating debt in which case a debt consolidation loan would be more suited.

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"A Revenue Based Loan Can Be A Great Option For Small Businesses And Online Businesses To Quickly Secure The Funding They Need To Grow!"

Benefits of a Revenue Based Loan

Quick Funding, Minimal Paperwork, Less Risk & Good Credit Not Needed

A Revenue Based Loan typically has higher rates than a traditional bank loan, however it's much quicker, easier, less tedious, and lower risk to secure a Revenue Based Loan; and there are numerous business benefits including:

Quick Funding & Very Little Paperwork Needed
One of the biggest appeals of the Revenue Based Loan is very rapid funding with very minimal paperwork required. Approvals and funding for a Revenue Based Loan all generally happens within approximately three to five business days; and the only paperwork typically required is a simple one-page application with 4-6 months of bank statements.
Good Credit Not Necessary
Another nice benefit of the Revenue Based Loan is that, unlike a bank loan, good credit is not needed. The Revenue Based Loan is based on a business-friendly scoring model that looks at prior sales history to determine the amount and terms of the funding. The lenders will usually do a soft credit pull, which should not negatively effect your credit score, just to ensure no prior bankruptcies or tax liens.
Less Strain On Cash During Slow Months
With a Revenue Based Loan, repayment is based on a percentage of sales which tend to be higher during more profitable months and lower during less profitable months. So, unlike a bank loan where there is a fixed payment every month regardless of the business' sales, during months where there are lower credit card billings, the amount of repayment for the month will be reduced.
Possible Even When Bank Loans Is Declined
Even if you've been previously declined for a bank loan, if you have been in business for at least one year, can demonstrate sales, and don't have a bankruptcy in your recent past, you should still be able to qualify for a Revenue Based Loan. You won't need collateral that the banks typically require and owners credit is usually no problem.
No Collateral & Less Owner Risk
As previously stated, because a Revenue Based Loan is not a traditional bank loan, there is no collateral required. Just the need to demonstrate consistent sales history for the business. With a traditional bank loan, the collateral is used to ensure the borrower is sharing the risk with the lender. If the borrower defaults on the loan, the lender can assume ownership of the collateral. With a Revenue Based Loan, the lender is taking all of the risk, which is why rates tend to be higher than for a traditional bank loan; however, the borrower is never in jeopardy of losing the collateral.

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At CyoGate, because our success is based on your success, we are always happy to help. Our professional team of Business Funding Specialists are available to help you find the best business loan and credit card processing options available.