Learn the basics of revenue-based financing from our frequently asked questions guide.
Knowing these key terms is fundamental to understanding revenue-based financing.
Revenue-based financing provides businesses with working capital in exchange for a specified percentage of their ongoing monthly revenue.
A factor rate is a financial tool used to calculate business capital costs for a revenue-based financing transaction.
Underwriting is the process of assessing the risk involved in providing revenue-based financing to a business and whether a business is eligible for revenue-based financing.
The most frequently asked questions from business owners about revenue-based financing.
Revenue-Based Financing is a type of financing where a business receives a lump sum of capital in exchange for a percentage of its future receivables.
Typically, no traditional collateral is required for RBF, but the business’s future receivables act as the basis for repayment of the funds.
Yes, one of the key advantages of Revenue-Based Financing is that it’s often available to businesses with poor credit scores and solely based on the revenue creation of the business.
The approval and funding process for RBF is typically much faster than traditional loans or capital. In many cases, businesses can receive their funds within 1 to 3 business days, making it a quick option for pressing capital needs.
Yes, the funds from Revenue-Based Financing can generally be used for any business-related purpose, such as purchasing inventory, covering operating expenses, expanding operations, growth capital or marketing efforts.
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At CFGMS™, we look forward to assisting current or potential customers with their working capital needs.
“CFG Merchant Solutions offers industry leading compensation packages, and is well positioned to fund in all 50 States as regulation & oversight increases. At CFGMS, we can fund almost any file!”
Bill Gallagher
CFGMS™ President
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