You can describe Revenue-Based Loans as a group of loan options for small businesses. They’re usually associated with shorter payment terms and smaller payments in opposition to regular bank loans. However, Revenue-Based Loans are more-or-less financial assistance that’s based on the amount of money your business generates.
Benefits Of Revenue-Based Loans
- You Don’t Need To Have Great Credit
- There’s No Collateral
- Short Loan Periods
- The Application Is Pretty Easy
- You Can Get Funding Quickly
You Don’t Need To Have Great Credit: Benefits Of Revenue-Based Loans
Unlike quite a few other loans, you don’t need a credit score between 600 and 800. In fact, you only need a FICO score of 550 in order to qualify. It’s great because it can give new business owners and startups an opportunity to fund their business without the stress of having excellent credit.
There’s No Collateral: Benefits Of Revenue-Based Loans
Often, when you go to banks for a loan, you’ll need to provide some form of collateral. However, with alternative lenders, and especially revenue based loans, there’s no collateral. However, the tradeoff is that interest rates are typically a bit higher. But again, they’re also much less risky.
Short Loan Periods: Benefits Of Revenue-Based Loans
Revenue-Based Loans can range anywhere from 6 – 60 months for the payment periods (not often more than a couple of months). So, if the business is booming and you’re doing well, you can pay off the loan in no time at all.
The Application Is Pretty Easy: Benefits Of Revenue-Based Loans
In comparison to SBA loans and other traditional bank loans, the application for Revenue-Based Loans is actually pretty quick. What is normally a multi-document process that requires extensive information, you can fill out a Revenue-Based Loan application in as little as a page.
You Can Get Funding Quickly: Benefits Of Revenue-Based Loans
After you’ve filled out your application, you can expect review and approval in as little as 48 hours. So, it’s great for any business owners who need cash quickly.
Finance Factory Can Help You Get Funded Today: Benefits Of Revenue-Based Loans
Interested in the benefits of a Revenue-Based loan? Finance Factory would love to help! If you’re looking to fund your business and have a credit score of 660 or better, let’s chat! Get pre-qualified right now with our quick-step pre-qualification form! And don’t worry, this will not result in a hard credit inquiry of sensitive information. We just want to learn more about you and your business. Click below to start!