Business Revenue
Advance
What is a Business Revenue Advance?
A Business Revenue Advance (BRA) offers small and midsize business owners quick access to funds, particularly for those who may not qualify for traditional bank loans due to a lack of collateral or low credit scores. Instead of a conventional loan, a BRA offers a lump sum of cash in exchange for a percentage of future sales or bank deposits.
It’s essential to understand that a BRA is not a business loan; rather, it is an advance against future revenues. This option can be beneficial for business owners who need working capital promptly and may find the approval process more accessible than traditional loans.
How a Business Revenue Advance Works
Having available capital can be crucial for addressing unexpected expenses, such as urgent repairs or equipment purchases that enhance business operations. If traditional bank loans are not feasible, a BRA may serve as a viable alternative.
When you apply for a Business Revenue Advance, the lender provides you with a lump sum of cash. In return, you agree to repay the advance by allowing a percentage of your future sales to be automatically deducted from your merchant account.
Before funds are transferred, the lender will present a detailed agreement outlining the advance amount, repayment amount, and terms.
Who Should Consider a Business Revenue Advance?
A BRA can be an ideal option for business owners seeking quick access to working capital without the need for collateral. It is particularly relevant for those who may face challenges in securing traditional financing.
The repayment structure is based on daily or weekly sales, meaning that payments can adjust according to your business’s revenue, making it a flexible option.
Features of Business Revenue Advances
- Factor Rates Starting From: 1.20
- Terms: 3 to 18 months
- Loan Amounts: $20,000 – $5,000,000
- Time to Fund: 1-2 Business Days
- Time in Business: Minimum 1 Year
- Existing Loans: Accepted
- Tax Liens: Allowed
- Industries Funded: Most industries, with few restrictions
- Repayment Frequency: Daily or Weekly
- Collateral Required: None
- Restrictions on Use: None
For more information, consider discussing your options with our financial advisor.
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