Revenue Based Term Loans

Borrow between $50,000 and $3,000,000 without the requirement of equity or perfect credit. Purchase inventory, acquire assets such as equipment, machinery, aircraft and vehicles, open in another location, hire a new sales team, start a marketing campaign, buyout a partner, or acquire another company. Lending is based on the revenue of your business or the company you are buying.

A profitable US Company with a minimum of $500,000 in annual gross revenue can easily qualify for credit, available as a short term loan and obtainable in 6, 9, or 12 month increments. Funds can be accessible in the Company account within 72 hours of processing completion without taking an equity position in the Company, and without the requirement of perfect credit. Capital must be utilized for expanding the existing business in a defined direction.

A deposit and processing fee is payable to the lender only after the client and lender have established a working relationship, performed initial due diligence, negotiated specific terms and conditions and have executed a mutually agreed upon term sheet.

Upon completion of processing, a full set of loan documents will be issued to the client and once executed, funds will be wired to a client designated account. The lender will typically deduct two points from proceeds at closing.

To review the advantages that a RevCap Loan has as one of the three basic financing options available to business owners, click here

To review a narrative on the benefits of utilizing a RevCap Loan when compared to the long term cost of Equity Capital titled "Equity Capital or Debt Financing for Business Growth?" click here

RevCap, also known as revenue and/or royalty based financing, a short term debt product, is a flexible method of attaining growth capital that has numerous advantages when compared to equity capital, merchant cash advances, purchase order financing and factoring.

• From $50,000 to $3,000,000 within 30 days of application
  
• Based on the annual gross revenue of the company
  
• Streamlined underwriting process with minimal paperwork
• Choose either a 6, 9 or 12 month term
  
• No perfect credit requirements
• No equity requirements
  
• No lengthy loan process

Some Applications for a RevCap Loan

• A growth opportunity in which you need funding quickly
  
• Funding the acquisition of an established and profitable company
  
• As a much less expensive option than an equity investment
  
• The need to hire additional sales people to expand geographically
  
• A new, large customer requires an increase in production capacity
  
• A new product creates the need for development capital
  
• Pay off higher cost debt from existing merchant cash advance deals
  

Advantages of a RevCap Loan to Equity Capital

                                                             RevCap Loan     Equity Capital

• Days needed to fund                            30                         90+
• Valuation of company required             no                         yes
• Personal guarantees                           yes                         yes
  
• Fixed payment amounts                      yes                         no
• Equity dilution                                       no                         yes
• Loss of control                                      no                         yes
• Alignment of interests                          yes                         no
• Market opportunity required                  no                         yes
• Tax deductible costs                            yes                         no
• Targeted costs of capital                  2X return               5X return

Cost Comparison of RevCap Loan to Equity Capital

ABC Company Inc has $2,000,000 in annual gross revenue and is looking to raise $200,000 for a growth opportunity.

As evident below, the cost of a RevCap Loan is far less than the cost of an Equity Investment at 36 months and beyond, and does not involve giving up management control or ownership of your company.

      RevCap Loan   Equity Capital

• $2,000,000      $2,000,000       Annual Gross Revenue
• $   200,000      $   200,000       RevCap Loan or Equity Investment
  
• $     80,000      $              0       Royalty (2% annually for 2 years)*
• $     50,000      $              0       Interest (12 month term)
• $              0      $   800,000       Equity (20%) (at 36 month exit)**
  
• $5,870,000      $5,400,000       Adjusted Revenue (36 month total)
  
• $   130,000      $   600,000       Cost of Capital (over 36 months)
  

 * Royalty is payable monthly only after term loan is paid in full

** Company valuation based on 2X annual gross revenue ($4,000,000)

Initial Documents Needed for Evaluation

• Executive summary with explanation of capital request
• Profit and loss statement and balance sheet (2013 & 2014 YTD)
• Detailed and prioritized use of funds (itemized)
• Proforma financial projections (post funding, minimum 3 years)
• ECF Information Form
  

Established and profitable US companies with annual gross revenues of at least $500,000, are welcome to submit their business to qualify for a RevCap Loan. It doesn't cost a dime to qualify the company. Just email the docs above and complete the form below.

All information will be handled with strict confidentiality.

Contact us by email at: info@executivecapitalfinance.com

or fill out the Form below.

Please fill out the form below and a principal will contact you within 48 hours to discuss your options. Thank you in advance for your interest in our company.