Tier One Business Financing | Revenue-Based Financing

Revenue-Based Financing

Smaller Payments During Slower Revenue Months

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

Lending Criteria

2 years of financial statements (balance sheet, P/L, cash flow) broken out by month
Revenue by customer
Debt schedule
Projections (if available)