Are you looking for financing that does not require a good credit score? Revenue-based loans are the perfect solution! Revenue-based loans offer an alternative to traditional business loans, and they’re becoming increasingly popular. In this post, we’ll go over what Revenue-Based Loans are, how they work, and why you might want them for your company.
Revenue-based loans are precisely what they sound like – loans based on your company’s revenue. These types of loans can be an excellent option for businesses with a low credit score because the program only looks at the health of the company rather than the owner’s personal credit history. Revenue-based loans can also be a good option for businesses with a credit score of 680 or higher but want financing options besides traditional bank loans. Revenue-based loans can provide short-term cash to help you secure an opportunity that will be highly profitable down the road.
To qualify for a revenue-based loan, your company must meet specific criteria:
- Consistently Cahsflow – Typically $30,000 a month or more
- Must have been in business for 6 months or more
- Have a business bank account
Revenue-based loans are also more flexible than traditional bank financing. Revenue-based lenders do not require personal guarantees, collateral, or covenants that often accompany other types of business loans. Revenue-based loan options vary for each company depending on the lender and term of loan requested; however, most revenue-based loans have terms between 12 to 36 months along with interest rates between 12% and 18%. Revenue-based loans are generally easier to qualify for than bank financing, but keep in mind that they will require monthly reporting of your company’s revenue.
Let us help you get the funding you need! We offer free business consultation services – just ask! Schedule a call with us or call today at (877) 360-7387.