All You Need to Know About Flexible Business Funding

We are a direct funder at FundKite. The thing that why people choose us over a traditional bank is one, speed. We only take a percentage of your true sales. You have no sales, no receivables. The cost remains the same. I helped over a thousand businesses get business funding last year, and the most common questions I get asked will help educate you to get funding in the future. It is really important to be educated on what you are doing so you can get the best rates and not be taken advantage of.

One of the main questions I get is how much am I going to get approved for? If somebody tells you an exact number off the phone, they are not telling you the truth. I can give you a range, but there is no way to give a definitive answer without going through the entire file and underwriting it. How much you get approved for has a lot to do with your credit profile, your revenue, your negative days, your industry, and how long you have been in business. It is too many things to calculate in a quick conversation.

Another question I get all the time: will this affect my credit? The short answer is revenue-based financing and business funding generally does not show up on your credit. Always ask whether it is a soft pull or a hard pull. Generally FundKite and the places we work with use soft pulls, so it will not show up on your personal credit, good or bad. A few products may report to your business credit profile, but it is not standard.

How fast can I get funded? With our revenue-based financing products, generally 24 to 48 hours, and it can be as fast as the same day. It is as fast as you can get us the business documents we need. Plan ahead when you can, because you always get the best terms when you are not in a crisis.

How much is this going to cost? It depends on the product and what you are approved for. I can give you an ideal cost range and outline the fees, but anyone who gives you an exact number on the phone is not being straight with you. Deal with someone who tells you what you need to hear, not just what you want to hear, and trust your gut.

What do you need to move forward? After we present the terms, the process is simple: driver’s license, a voided check, and some bank verification. Depending on how complex your company is, we may need a business tax return, mainly to establish proof of ownership. We need to be sure we are speaking with the actual owner. The beauty of what we do is it is fast and does not need a lot of documents.

What if business slows down? This is a very important point. If your business goes down but the payment stays the same, that puts a huge burden on cash flow. At FundKite we do real-time reconciliation: we take a true percentage of your sales, not a fixed payment. If your business is seasonal or you see a downturn, a fixed payment can really hurt you, so make sure you are dealing with a funder that reconciles in real time.

Can I pay this off early? Always. In business funding there is no prepayment penalty, and we have aggressive prepay discounts in the first 30, 60, or 90 days on most of our products. If everything has been paid on time, discounts can even happen later on a case-by-case basis.

With my current situation, do you think I will qualify? I do not have a crystal ball. I can take your basic information and ask as many questions as possible to give my best opinion and guide you in the right direction so you do not waste time. The worst thing I could do is give you BS, string you along for three days, and then say I cannot help, while your crisis gets worse. People worry most about credit, but for us credit is a factor, not the deciding factor. It can affect the terms, but not your overall ability to qualify, and that is one of the main things that differentiates us from a bank or a credit-based product.

What is the difference between revenue-based financing and a traditional bank loan? In general terms: speed. You are not getting significant capital from a bank in 24 hours. Banks are designed to take the least risk possible. Our funding is generally not asset-backed; you are not putting up property or equipment. It is largely not credit-based, and it does not report to credit bureaus. There is also no fixed personal guarantee the way there is with a loan or a credit card, because we are buying your receivables and attaching the funding to the business.

Can I get additional funding later? Yes, we want to be your partner. As you pay consistently and your business performs as projected, we can generally get you more. Where it gets risky is when merchants stack many fundings at once, so 20, 30, 40, 50 percent of revenue is going to payments. That hurts your business and your ability to pay it back. Call me before you go anywhere else. I believe in repeat customers and doing what is best for the merchant, and the rest takes care of itself.

I was declined somewhere else, can I still get funded? Often, yes. Being declined by one company does not mean you will be declined everywhere. What matters most is a complete onboarding call where I ask a lot of questions and understand your business. I will ask why you were declined; sometimes it is credit, sometimes it is that you had no revenue the last few months, which is genuinely hard to fund. Being honest with your rep lets us give you the best advice.

How often do I have to make payments? Daily, weekly, or monthly. Everybody wants monthly, but because we are buying your receivables, payments often happen as sales happen. The important thing to understand is that the cost stays the same: it is a fixed fee over the life of the funding regardless of frequency. A daily payment may affect cash flow timing, but it also means you are not hit with one big bill at the end of the month.

Do you work directly or are you a broker? We are a direct funder at FundKite. Sometimes for an industry we do not handle or something very high-risk, we will tell you and route it to partners in a marketplace, but generally we fund your deal directly. Everybody claims to be a lender these days; do your research, check reviews, and confirm whether they are a real funder or a broker.

What happens if I miss a payment? Unlike a credit card, this is not about a 30-day late mark on your credit. The best thing is communication. If a payment is going to be late, call your rep or customer service and we will work with you. Things get escalated only when someone stops paying and stops communicating. Outside of fraud, we understand life happens and we want a good long-term relationship.

Who do I talk to after I get funded? It depends on what you need. Our customer service team stays in touch to make sure your experience is good and to help if you need additional funding. People often get called by many brokers filling their heads with noise, so keeping a steady line of communication helps everyone. As Chief Revenue Officer, my number is on everything and I am always available to talk.