merchant cash advance

The Revenued Business Card: What is it & Do You Need it?

The Revenued business Visa® card is a popular new way for businesses manage their spending (and to get funding in as little as an hour after you apply). So, if not a loan or line of credit, what is it? And, is it worth it?

Here, we’ll look at the details of the offer including an overview of the company, rates and fees, limits, and get answers to questions you might have about the Revenued business card.

This is what’s in store:

What is a Revenued Business Card?
How Does a Revenued Business Card Work?
Frequently Asked Questions
Conclusion: Is the Revenued Business Card Legit?

Now, let’s roll!

What is a Revenued Business Card?

The Revenued business card is a “fee-free,” 3% cash back, commercial prepaid card issued by Sutton Bank, designed specifically for business needs—It’s not a credit card, loan, or a gift card, and it’s meant to purchase goods and services related to your business activities.

There are no:

Monthly maintenance fees
Card replacement fees
Expedited delivery fees
Statement fees

However, if you use an out-of-network ATM, additional fees might apply.

With the Revenued business card, you also get access to a “Flex Line” feature, providing you with a flexible “line of credit” up to $500K. And, it’s funded through a Pearl Capital account, using merchant cash advance (MCA) funds (Originally, this made me think the company was a white label solution for Pearl Capital funding).

Within the flexible line of credit, there are spending limits: you can spend up to $10,000 per day, $50,000 per month, and no more than $10,000 per transaction.

You might also like: Is Carputty Legit? A Complete Auto Financing Review

What is Pearl Capital MCA Funding?

For individuals considering a Revenued business card, Pearl Capital MCA funding offers a financial solution worth exploring. MCA, or Merchant Cash Advance, funding is essentially a factored loan, wherein a lump sum is provided upfront in exchange for a percentage of future credit card sales—This means that instead of a traditional loan with fixed payments, repayments are based on a percentage of daily credit card transactions.

It’s a quick and flexible option for businesses in need of immediate cash flow, although it’s important to note that MCA funding typically comes with higher fees and shorter repayment terms compared to traditional loans.

You might also like: A Deep-Dive Credibly Review: Is Their Financing Right for You?

Revenued Business Card Requirements

To obtain a Revenued Business Card, you’ll need to meet certain requirements—Firstly, you must have a valid email address and reliable access to the internet.

You also need:

A legally registered LLC or corporation
At least a year in business
A dedicated business checking account
At least $20K in monthly deposits

Other factors may limit your ability to obtain funding during the underwriting process. However, your credit shouldn’t impact your ability to obtain a Revenued business card.

You might also like: Could a Stripe Capital Loan Get Your Business Through a Rough Patch?

Company Overview

There are several companies at play here (Sutton Bank, Pearl Capital, Marqeta). For the sake of staying relevant, let’s peek behind the curtain at Revenued – the company presenting the actual product. According to their own marketing, “Revenued is a card that cares less about FICO and more about your business.”

Revenued LLC is a New Jersey-based, private, for profit financial solution provider that was founded in 2017. The company’s current CEO, Solomon “Sol” Lax, is claimed to have been at his current position since 2015 (but the entity wasn’t officially established until a couple years after this).

Now, what’s interesting is that, according to his LinkedIn profile, Sol became the CEO at Pearl Capital in 2015, where he moved up from COO—This shows that the two entities are very connected.

In fact, Revenued and Pearl Capital share most of the same company leadership.

Technically, they are two different entities, so let’s not dwell too long on that subject. For 6 bucks or so, we could pull more info about the companies from Secretary of State records or Open Corporates. But, I think we have enough info to dig up the dirt.

Revenued isn’t listed on Glassdoor, but Pearl Capital is. And, only about ⅓ of employee reviewers approve of Sol as the leader of the company. Staff rate diversity and inclusion efforts on the poor side and declining. What employees think of a company can imply a lot about the internal culture.

More importantly from a borrower’s perspective, existing customers can tell us more. On Trustpilot, The reviews for Revenued are overwhelmingly positive, with a TrustScore of 4.7 out of 5 and the majority of reviewers giving 5-star ratings. Customers praise the company for its easy application process, helpful customer service representatives, and quick issue resolution.

While they’re not accredited with the Better Business Bureau (BBB), they maintain an A- rating. Most if not all of their complaints must’ve been closed in a timely manner.

Revenued business card report to credit bureaus

I ran across a few open lawsuits where Revenued LLC was a party—they appeared to be the company filing breach of contract against business borrowers. It’s worth noting that they do collect on debts owed to them, which is completely understandable.

In all, despite some internal concerns and a few disputes, Revenued LLC garners high customer satisfaction ratings for its efficient services, suggesting that it effectively meets the needs of its clientele.

You might also like: This is the Truth About LenCred’s Small Business Financing

How Does a Revenued Business Card Work?

From the card itself to the Flex Line and more, A Revenued business card is a simple, but powerful offer. Let’s take a look at the features and benefits of a Revenued business card.

1. Flexible Line of Credit

The Revenued business card offers access to a flex line of credit that adapts to your business’s revenue fluctuations. This feature allows you to borrow funds as needed, providing financial flexibility to cover unexpected expenses or seize growth opportunities.

Unlike traditional loans with fixed repayment terms, the line of credit adjusts based on your business’s performance, ensuring that you have access to the capital you need when you need it most.

Moreover, the factor rate remains constant throughout the repayment period and usually falls within the range of 1.1 to 1.5.

You might also like: How to Get Approved for Amazon Net 30 Terms (“Pay by Invoice”)

2. Control & Monitoring

Managing your spending and monitoring transactions is made simple with the Revenued business card. They use Marqeta (the same platform as Ramp and Divvy (Bill)) to issue cards and – in my experience – this technology is great.

Through an intuitive online dashboard or mobile app, you can track your purchases, review transaction history, and monitor your available credit in real-time—This visibility and control level can empower you to make informed financial decisions, identify trends in your spending patterns, and proactively manage your cash flow.

Moreover, authorized users are allowed, which could be convenient or needed for some borrowers.

You might also like: Can Tradeline Supply Reviews Be Trusted? The Full Picture

3. Super Quick Funding

One of the key advantages of the Revenued Business Card is its quick and streamlined funding process. When you apply for the card online, you can receive a funding decision in as little as an hour.

Once approved, you’ll gain access to your funds within 24 hours, allowing you to address pressing business needs promptly—This rapid funding turnaround time ensures that you can seize opportunities for growth and respond to unexpected challenges without delay, which can help you keep your business operations running smoothly.

You might also like: Is Biz2Credit Legit? A Complete Review

4. Dedicated Support

Revenued business card customer service number

As a Revenued business card holder, you’ll have access to dedicated support from a team of experienced professionals. From the moment you apply for the card, you’ll be assigned a dedicated Account Manager who will guide you through the application process and provide ongoing assistance with managing your account.

However, live chat support is limited to certain hours and days of the week.

You might also like: 41 Companies That Help Build Business Credit [Beyond Net 30 Vendors]

Frequently Asked Questions

Does Revenued do a hard pull?

Revenued typically conducts a soft credit pull during the application process, which doesn’t impact your credit score. However, in some cases, they may perform a hard credit pull, which can affect your credit score.

Is there an annual fee for the Revenued business card?

As of January 2024, the Revenued Business Card is fee-free. It doesn’t charge an annual fee, monthly fee, application fee, or card replacement fee.

What is the minimum credit score for Revenued?

Revenued considers various factors beyond just your credit score when evaluating applications. While there isn’t a specified minimum credit score requirement, having a higher credit score may increase your chances of approval and potentially result in better terms.

Who does the Revenued business card report to?

The Revenued business card typically reports to the major credit bureaus, such as Experian Business, Equifax Business, and Dun & Bradstreet (D&B). This means that on-time payments can help you build business credit.

Conclusion: Is the Revenued Business Card Legit?

I almost never recommend MCA funding unless there is no other choice because they are typically too expensive. While MCAs may not always be the preferred option for financing, the Revenued Business Card stands out for its potential to serve dual purposes.

Not only does it offer a pathway to access working capital quickly, but it also presents an opportunity to build and strengthen your business credit profile. And, the potential for 3% cashback on MCA spending adds another layer of benefit, making it a compelling choice for businesses seeking flexible financing solutions while aiming to improve their creditworthiness.

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Is Bitty Advance Legit? A Full Merchant Cash Advance Review

By Joe

If you applied for a loan with OnDeck, Lenzi, or another online loan marketplace, you may have been referred to Bitty Advance for business funding. But, their advertising isn’t super transparent about terms and fees. So, I wanted to do a deep dive to explain what you might expect.

Here, you’ll find out what Bitty Advance is, get some insights into their terms, and explore all the features of a Bitty merchant cash advance. Plus, I’ll answer some of the most common questions that people ask.

This is what’s in store:

What is Bitty Advance?
- Company Overview
What to Expect With a Bitty Advance MCA
Frequently Asked Questions
Conclusion: Is Bitty Advance Legit?

Now, let’s go!

What is Bitty Advance?

Bitty Advance is a newer financial services company that specializes in funding small businesses through Merchant Cash Advances (MCAs)—An MCA is a financial product where a business receives a lump sum of cash in exchange for a percentage of its future credit card sales or overall revenue.

It’s not a traditional loan but rather an “advance” against future earnings. They offer funds from $2K to $250K, and the company is known for its quick funding process and transparent terms.

Bitty Advance caters to businesses in various industries, including:

Restaurants
Trucking
Healthcare
Construction
More

Bitty Advance aims to help small businesses by providing the capital they need to grow and thrive…even if they have bad credit.

Now, Bitty is supposed to offer early payoff discounts. But, some user reviews suggest that this isn’t always the case, which can be disappointing if you expect savings.

Right away, in case you don’t already know, I should also say that MCAs are a factored loan, as opposed to a traditional interest-based loan. And, factored loans tend to be more expensive in the end.

You might also like: Full OnDeck Review: All You Need to Know About the Business Funding Offer

Company Overview

Bitty Advance 2 LLC has been actively registered in the state of Florida since December of 2020, though cited as operational since 2018. The company’s registered agent is “Registered Agents Inc.,” and the current manager is Craig Hecker (the same Craig Hecker who founded Rapid Capital Funding, no longer operational).

Right away, there are some red flags with Sunbiz records:

I’m assuming there was a Bitty Advance 1 before Bitty Advance 2.
Rapid Capital Funding II LLC last reported on their business in 2018.
The first Rapid Capital Funding LLC was also active until 2018.

This just looks messy…

To me, the inconsistency indicates that there could have been some problems that led to re-registration and re-branding. After a 5-second search, I found about half a dozen lawsuits against both Rapid Capital and Rapid Capital II. Without delving into the specifics of each case, there are disputes ranging from breach of contract to unspecified claims.

And, if you do some digging of your own, it will shed light on legal matters involving Bitty Advance, including lawsuits, debt relief options, and complaints—Hinting at potential challenges faced by individuals and businesses dealing with Bitty.

With that out of the way, I notice that Bitty isn’t at all transparent about their terms, rates, and fees on their website or in their advertising (I’ll try my best to shed some light on that soon). I see this as a red flag too, since it doesn’t enable comparison shopping.

And, Bitty doesn’t allow you to apply online without speaking with a loan agent…This isn’t completely unheard of, but it appears they’re not keeping up with the industry.

Now, on Trustpilot, Bitty Advance maintains a 4.2-star Trustscore, which is pretty high. Trustpilot reviewers have varied opinions on Bitty Advance, with some praising the company for its efficiency, quick disbursement, and helpful staff, while others express dissatisfaction with issues such as lack of communication, unexpected charges, and difficulties with early payoffs. Overall, the reviews highlight both positive and negative experiences.

The Better Business Bureau (BBB), on the other hand, paints a different picture. Of ten BBB complaints filed against the business, three remain unanswered by the company. And, with the business not being super well established, BBB has given Bitty Advance an F rating.

This isn’t great, especially where some businesses have hundreds of complaints and maintain A ratings on BBB.

Altogether, the background of Bitty Advance 2 LLC raises some concerns, with past legal entanglements and a lack of upfront transparency, despite some positive reviews on Trustpilot. The Better Business Bureau’s F rating and unresolved complaints add to the complexity and might point at the potential for challenges.

You might also like: A Complete Northwest Registered Agent Review & Analysis

What to Expect With a Bitty Advance MCA

The main appeal, and most common highlight of Bitty’s offer is that you can get quick access to cash. You can call Bitty Advance at (800) 324-3863 to start the application process.

Based on the hundreds of user experiences I scoured through, I estimate that the factor rate range for Bitty Advance is likely between 1.5 and 2.5—This estimate is based on the “high fees,” “unexpected charges,” and substantial repayment amounts mentioned in reviews on Trustpilot and other platforms.

While Bitty Advance doesn’t provide exact figures for the factor rate, the significant costs incurred by borrowers suggest a factor rate higher than the industry average (I often see rates between 1.1 and 1.5).

Let’s break this down:

When you enter into an MCA agreement with a company like Bitty Advance, you would receive a lump sum upfront in exchange for a portion of your future credit card sales—This portion would be calculated using a factor rate, which is a multiplier applied to the amount funded.

For example, let’s say you receive a $25K advance from Bitty Advance with a factor rate of 1.8. The total amount you would need to repay would be $25K * 1.8 = $45K.

Now, repayment is typically made through a percentage of daily credit card sales. So, let’s assume that the agreement specifies a daily repayment percentage of 15% (anecdotally, it could be higher with Bitty, up to 35%)—If your credit card sales for a particular day total $3,000, they would need to remit 15% of that amount to Bitty Advance.

So, $3,000 * 0.15 = $450 (or more) would be remitted to Bitty Advance for that day’s repayment.

This repayment structure would continue until the total repayment amount of $45k was reached. And, the actual repayment amount would vary depending on your daily credit card sales.

Frequently Asked Questions

How do I get approved for Bitty Advance?

You need to meet their criteria, which usually includes a monthly revenue of around $5K or more and business history (established for at least 30-90 days). Apply online and provide requested documentation for review – there is no hard credit pull, so the main risk is paying any hidden fees.

Can a merchant cash advance hurt your credit?

Generally no, but defaulting on repayment could indirectly impact your credit score through collections or legal actions.

How do I know if a loan company is scamming me?

Watch out for unsolicited offers, upfront fees, lack of transparency, pressure tactics, unlicensed lenders, and trust your instincts.

Conclusion: Is Bitty Advance Legit?

Technically, yeah, Bitty Advance is a legitimate business, registered and active in the state of Florida. They are operating legally, but several lawsuits allege that leadership may be sitting in a gray area.

And, Bitty’s repayment structure could have both advantages and disadvantages:

On the one hand, it provides quick access to capital without the need for collateral or a lengthy approval process.
However, the high factor rate and daily repayment percentage can result in significant costs, which can impact your cash flow and profitability over time.

Personally, I never recommend factored loans unless there is absolutely no other option. And, always read the fine print before you sign anything.

Do you want to learn how to obtain up to $100K in business credit in as few as 30 days? Join Business Credit Workshop today!

Shopify Capital Review: What are the Benefits & is it Worth it?

By Joe

eCommerce merchants who need a boost in cash flow have probably considered Shopify Capital as a source of funds. Are you wondering if you should accept a funding offer from Shopify? …I can help you decide!

In this post, I’m going to dive into exactly what Shopify Capital is, eligibility requirements, why you may or may not want to apply for an offer, and introduce some alternatives you may want to consider.

Here’s what’s in store:

What is Shopify Capital?
- Company Overview
- What are the Benefits of Shopify Capital?
Shopify Capital Loan Summary
Shopify Capital Alternatives
Frequently Asked Questions
Conclusion: Is Shopify Capital Funding Worth it?

So, let’s roll!

What is Shopify Capital?

Shopify Capital is like your online store’s financial wingman. It swoops in to offer cash advances to businesses that are rockin’ it on Shopify. If your store has a good track record and plays nicely with the Shopify platform, you might just be eligible to request a cash boost.

This extra dough can be a game-changer – you can use it for all sorts of things like:

Investing in more inventory
Revving up your marketing
Setting up shop in a physical store
Bringing in some extra hands to help out

So, Shopify Capital is essentially designed to help you scale your business.

But, there are tons of financial offers out there that can help you do this. How do you know if this is the one? Keep reading.

Company Overview

Founded in 2004, Shopify, aka Shopify Payments, aka Shopify Data Processing is a Canada-based, publicly-traded for profit company worth $1.3B. The company is leading the eCommerce game with their token online sales platform (but you already knew that, didn’t you?).

I won’t delve too deep into Shopify’s app store or Shopify Plus – the enterprise eCommerce platform – but, I do want to take a quick look at the history of Shopify Capital.

The company launched Shopify Capital in April 2016, as a merchant cash advance offer. Since then, they’ve provided billions of dollars in funding to their sellers worldwide.

All Shopify Capital loans are funded by WebBank, which is also affiliated with Dell Business Credit, LendingClub, and Capital on Tap. While these aren’t my favorite funding offers for business owners, they are legitimate offers.

What are the Benefits of Shopify Capital?

Shopify Capital offers several benefits to eligible businesses:

Quick, easy access to up to $5M – Shopify Capital simplifies the funding process. If your business qualifies, you can access the funds you need swiftly, which allows you to capitalize on opportunities or address financial challenges without lengthy approval processes.
No fixed repayment schedule – One of the perks is that repayments are tied to your daily sales. This means that when your sales are high, you’ll pay back more. But, during slower periods, the repayment amount decreases, making it more manageable.
No personal guarantees – Unlike some traditional loans, Shopify Capital doesn’t typically require personal guarantees (PGs), which reduces your personal financial risk.
Customized funding – Shopify Capital tailors the funding amount to your business needs based on factors like your store’s history and performance.
Invest in business growth – You can use the funds to invest in your business, with the goal being to increase your future profits.
Transparent fees – The costs associated with Shopify Capital are straightforward, so you won’t encounter hidden fees or surprises.

These benefits make Shopify Capital an attractive option for Shopify merchants looking to fuel their business growth and address financial needs with flexibility and convenience. Now, let’s take a look at the actual details of the loan and how it stacks up in the lender marketplace.

Now, let’s explore the cash advance offer in more detail.

You might also like: What’s the Best Payment Processor for a Small Business? Really

Shopify Capital Loan Summary

When deciding whether a Shopify Capital loan is right for you, I think it’s most important to look at eligibility requirements, terms and repayment, and alternatives. So, let’s look at each of these facets of the offer.

Note: These details relate to the U.S. offer only. For other countries, see the Shopify help center.

Shopify Capital Eligibility Requirements

Shopify Capital has certain eligibility requirements to qualify for its merchant cash advances in the U.S.

To be eligible, your business should meet the following criteria:

Use Shopify as your sales platform – You need to be a Shopify merchant, which means your business should operate on the Shopify platform to apply for Shopify Capital.
Location – This program is available specifically for businesses in the United States, so you should be operating within the U.S. to be eligible (comparable offers are available for businesses in Canada, Australia, and the U.K. as well).
Sales history – Shopify Capital considers your store’s history, which means businesses with a track record of sales on the platform are more likely to qualify.
Risk profile – The amount you can receive and the remittance rate depend on your risk profile. Factors like your store’s performance, sales, and other business metrics are assessed to determine this.

Remember that eligibility doesn’t guarantee funding, but meeting these criteria is a good start if you’re looking to access funds through Shopify Capital. It’s like a helping hand for businesses that are already up and running on Shopify in the United States.

If you have more questions or need further information, feel free to ask!

Shopify Capital Terms & Repayment

When Shopify Capital offers you a cash advance, it’s like giving your business a boost of cash. They’ll hand you a lump sum of money, and you pay it back from your daily sales. No need to stress about a fixed schedule for repayments. Instead, it’s a percentage of your daily sales, which is called the remittance rate.

Now, about those fees – the terms are pretty straightforward.

Shopify Capital tells you upfront how much they’ll take for the cash they give you. So, let’s say they give you $5,000, and the fee is 10%. You’ll pay back a total of $5,650, which includes the initial $5,000 plus the 10% fee.

Payments are automatically deducted from your daily sales, so you don’t have to worry about missing an installment. You can also choose to pay off the balance whenever you like – it’s all pretty flexible.

And the best part?

No rush to pay it all back…there’s no set deadline. It’s all based on your daily sales, so when business is good, you pay more, and when it’s slower, you pay less.

Easy peasy, right? Well…not so fast.

Before you jump in head-first, consider how consistent your sales have been, and whether or not you anticipate any slow periods.

If you’re unsure, you may not want to get in over your head. Shopify does have the right to collect their funds, even if your customers decide to hit the road and go somewhere else (it would be unfair if they didn’t).

Overall, Shopify Capital’s terms are what I would expect from any cash advance offer. And, their factor rates of 1.1 and 1.13 are reasonable, with other offers being as high as 1.5 and beyond.

How to Apply for Shopify Capital

Applying for a Shopify Capital cash advance is a super straightforward process:

Log In to Shopify – If you have a Shopify store, log in to your account.
Find Capital – Look for the “Capital” section in your Shopify settings.
Pick an option – They’ll show you choices for how much money you want and how you’ll pay it back. Choose the one that works for you.
Verify who you are – They’ll need to make sure you’re really you, so be ready to confirm your identity.
Say yes to the rules – Read and accept the rules they give you. It’s like agreeing to the terms.
Switch to Shopify Payments (if needed) – If you’re not already using Shopify Payments, they might ask you to switch to it.
Submit your request – Hit the button to send in your request. Now, wait a bit for them to look it over (usually 1-3 business days).
Get your money – If they say yes, they’ll put the money in your business bank account within two business days.

That’s it!…Ready to explore other options before you make that final decision?

Shopify Capital Alternatives

While there are a ton of merchant cash advance options available, I’m most familiar with three of the most reputable. So, let’s compare Shopify Capital, Stripe Capital, and Credibly’s offers.

	Shopify Capital	Stripe Capital	Credibly Financing
Platform	Exclusively for Shopify merchants	Available for Stripe users	Open to various businesses
Eligibility	Requires a history with Shopify	Based on your Stripe activity	Open to businesses with requirements
Funding Speed	Quick approval and funding	Rapid approval and funding	Quick funding decisions
Repayment	Daily percentage from sales	Daily percentage from sales	Fixed daily or weekly payments
Repayment Flexibility	Flexible based on daily sales	Adjusted based on sales	Fixed repayment schedule
Fees	Fixed fee determined upfront	Fixed fee determined upfront	Fees based on risk and terms

Each of these cash advance options has its own strengths and caters to different business needs.

Shopify Capital is ideal for Shopify store owners seeking flexible, sales-based repayments. Stripe Capital is for Stripe users and offers rapid funding. Credibly offers financing to a broader range of businesses but with varying terms based on risk.

Now, a merchant cash advance has never been my go-to for business funding – You have many other options that are often more ideal.

For one, traditional loans are like the ones you get from banks and credit unions, often cheaper but harder to secure because they require a strong credit history and collateral. And, business lines of credit work like credit cards for your business, offering flexibility, but interest rates can fluctuate. Both of these are pretty standard, and you can get into these types of funding when you maximize your business credit.

Next, SBA loans, backed by the government, come with good rates and reasonable monthly payments, but their complex application process can be challenging. Then, online business loans, like offers from Become, Lendio, or Fundbox – provide quick funding but may have fairly high costs.

Moreover, crowdfunding and peer-to-peer lending let you seek funds online, but success isn’t guaranteed. Finally, if you have personal savings or assets, you can use them, but it involves a risk to your personal finances.

Remember, the best choice depends on your specific business situation and preferences. So, consider your needs and the terms that suit you best when deciding.

Frequently Asked Questions

Can you negotiate Shopify Capital?

No. Shopify Capital offers fixed terms, including fees and repayment percentages, which are not negotiable.

How long does it take for Shopify Capital to be approved?

The approval process typically takes 1-3 business days, but in some cases, it might take longer.

What percentage of profits does Shopify take?

Shopify Capital takes a fixed fee, which is determined upfront. The percentage varies based on your specific cash advance offer.

What company owns Shopify?

Shopify is an independent company, and it’s publicly traded on the New York Stock Exchange and the Toronto Stock Exchange. It has been shareholder-owned since 2015.

Conclusion: Is Shopify Capital Funding Worth it?

In most cases, I don’t recommend merchant cash advances for business funding, because the fees tend to be super steep, and better options are usually available. With that said, Shopify Capital does have a reputable offer with fair terms…Plus, it’s super easy to pay back one of these cash advances (how long that takes will depend on your sales).

So, if you like the offer, your business is located in a region where it’s available, you meet the other eligibility criteria, and you really need the money now, go ahead and apply.

Also, If you’re interested in learning how to get up to $100K in business credit in as few as 30 days, join Business Credit workshop today.

A Deep-Dive National Funding Review: Should You Accept an Offer?

By Joe

If you run a business and you’re in the market for outside capital, you may have received a National Funding offer in the mail (perhaps for “up to $300K” with a piece of cardboard that resembles a credit card) or seen an ad online. At first glance, it probably sounds enticing or at least mildly interesting. But, you need to know more before you take a leap and get your company or yourself into the wrong kind of debt.

Here, we’re always on the lookout for small business funding opportunities and want to give you the most honest, unbiased information you can find about your options. While National Funding has been around since 1999, we haven’t done a deep dive analysis on their loans and financing offer… until now. Today, let’s explore everything you need to know about the lender so you can decide if they’re right for you!

Is National Funding legit? Here’s what we’ll cover:

What is National Funding?
Small Business Funding Offer Overview
Conclusion

Now, let’s get to it!

What is National Funding?

National Funding, Inc. is a privately-held small business debt-financing lender based in San Diego, California. They’ve been around since 1999 and you’ll find 72 National Funding reviews in a Google search, so they’re reputable. Business owners trust them for what they offer. But, not every lending offer is the right fit for every situation.

At this institution, there are three core funding offers:

Small business loans
Business loans for bad credit
Equipment financing and leasing

When you see a company offering any type of financing for bad credit, it’s wise to be discerning. In fact, I always recommend business owners educate themselves on how to repair their credit before getting into “bad debt” since it’s not as difficult as most people assume.

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

Who Owns National Funding?

National Funding was founded by Dave Gilbert. Gilbert has been with the company for over 22 years and acts as the present-day CEO.

According to LinkedIn, Gilbert launched the company just two years after graduating from USC Marshall School of Business where he received his BS in Entrepreneurship. He is a financial supporter of several sports-related charities, essentially sponsoring local teams.

Does National Funding Report to Credit Bureaus?

Other than on their blog, National Funding doesn’t mention any credit bureaus on their website. Nor could we find any lendees to tell us whether or not they report. So, as of today, no, National Funding does not report on-time payments (or poor payment history, for that matter) to credit bureaus.

Low-interest, legitimate business credit is typically based on a credit score. Sometimes lenders use a founder’s FICO score while others use a business credit score from a reputable business credit bureau like D&B to determine a business’ creditworthiness. It doesn’t seem like that’s the case with National Funding’s business loans for bad credit.

How to Qualify for a National Funding Loan

If National Fundings’ creditworthiness is not necessarily based on a credit score, it has to be based on something else. You can get business funding in as little as 24 hours after approval with full documentation of three-months’ business bank statements, which will determine your loan amount.

When you apply on the website, you’ll be asked to provide some contact information as well as your annual gross income. If you received an offer in the mail, you’ll be asked to share your invitation number (probably to track marketing efforts).

Once you submit your info, you will be redirected to the application process where you will first be asked for your personal FICO score.

If your income is above $12.5K per month, you can continue with the application process.

And, if your income is less than required, but your FICO score is above 650, you will be redirected to “apply for a credit card” with Eve Financial. Eve Financial is a newer company that essentially processes your information and matches you with a lender. National Funding likely gets a commission from every loan approved through the platform.

Now, back to the National Funding application process. If your income qualifies you, you’ll be asked to share more information. You’ll also be opted in to receive text messages if you don’t uncheck the box to revoke permission, so read carefully as you proceed.

The National Funding website will generate some forms for you to sign electronically. This only takes a few moments before you will be asked to prove your business income by uploading electronic business bank statements. If you have enough revenue, you’ll qualify.

Small Business Funding Offer Overview

If your business generates $12.5K or more per month and you’re still reading, it’s important to look at what kind of funding you might qualify for. Here’s a closer look at the three funding offers from National Funding.

1. Small Business Loans

Essentially, a “small business loan” through National Funding is a working capital loan or cash advance, intended for short-term needs. Your debt will be repaid through a percentage of each ACH transaction through your credit card processor, which is how they can use business income alone as a qualifying factor.

In the case of National Funding, you can expect a pretty hefty “flat fee,” also paid as a percentage of each transaction and in addition to any processing fees.

2. Business Loans for Bad Credit

National Funding’s “business loans for bad credit” are essentially the same a the small business loans but with higher fees. Instead of looking at your credit, the company examines your income. Your fees will be higher than with more traditional business financing.

If you feel like you won’t qualify for a more traditional funding option like a term loan, line of credit, or credit card, and you’re in a pinch, companies like National Funding do have money to offer.

3. Equipment Financing & Leasing

Finally, National Funding offers equipment leasing and financing. Essentially, if a piece of equipment breaks and you need it to operate, you can use a lender like this to help you replace it. In this case, funding could be necessary fast and it wouldn’t be a bad idea to pay a higher flat fee to keep your doors open.

Disclosure: In addition to these three funding options, National Funding advertises “merchant cash advances,” “working capital loans,” “unsecured business loans.” They also target specific industries like construction, commercial trucking, agriculture, medical practice, landscaping, and senior care. Their offers are almost the same across the spectrum, unchanging by title.

Conclusion

If you have poor credit, an immediate business need, and your revenue is at least $12.5K per month, National Funding might be right for you. The company has been in business long enough to prove that they’re legit. However, I almost never recommend a business owner apply for this type of funding. Instead, learn how to qualify for better funding options through business credit coaching.

National Funding themselves talk about trade credit, business credit scores, and building your business credit score. I commend them for it, but recommend you steer clear unless you are facing an emergency. There’s a better way. If you want to learn how to qualify for $100K in business credit in 30 days, join Bussiness Credit Workshop today.

Could a Stripe Capital Loan Get Your Business Through a Rough Patch?

By Joe

Businesses are always in need of working capital. Now, we need it more than ever. So, I wracked my brain for one of the best solutions I know of (that we haven’t written about previously) that would be especially helpful for businesses in the current economy. And, the first resource that came to mind was Stripe Capital.

I’m seeing a lot of business owners who were working on their personal credit to get ready for new financing to grow their companies before the COVID-19 pandemic disrupted commerce in ways we never saw coming. And, the reason this option was at the front of my mind is that the company doesn’t require a personal guarantee, which is rare.

So, what’s this mean for you?

Here’s what’s in store:

What is Stripe Capital?
- How much working capital can you get from Stripe?
- Does Stripe report on-time payments to credit bureaus?
Stripe Capital Eligibility Requirements
Stripe Capital Repayment Terms
- How much will you pay?
Frequently Asked Questions
Conclusion

If this information could be helpful at this difficult time, keep reading.

What is Stripe Capital?

For those of you who aren’t familiar with Stripe Capital, it is a business financing service that Stripe, known for its payment processing solution, offers to its existing users. The company gives customers next-day access to funds for daily operations based on their transactions. Think of it as “Stripe working capital.”

Like many other working capital services, the funds can be used to purchase new equipment, pay employees, or any other activity that will help you maintain or grow your business. Yet, the program varies in several ways from other comparable services. To learn more, keep reading.

When you accept an offer for a Stripe Capital loan, the company will not make a decision based on your personal or business credit. Instead, capital offers are based on transaction volume and history of payments processed through your Stripe account. So, if you are a current user, this could be just the solution you need to keep your doors open through a dilemma.

You Might Also Like: Shopify Capital Review: What are the Benefits & is it Worth it?

How much working capital can you get from Stripe?

The company website advertises loans in the amount of $15K, $20K, and $25K. But, you are not necessarily limited to a single loan. Some customers with existing loans will have the option to apply for another loan after making payments toward the original funding amount. And, you can pay off your loan at any time.

Since Stripe’s fees are fixed based on the size of the loan taken, you would receive no cost hardship or benefit (i.e. lower interest payments) from paying early. And, this could potentially open you up to a new financing offer from Stripe sooner than if you were to pay the funds back as agreed.

You might also like: Torro Business Funding Review: Is This “Zero Hassle” Offer Legit?

Does Stripe report on-time payments to credit bureaus?

Stripe does not require a credit check for funding approval. The capital program seems to have no relationship with D&B or any of the personal or business credit bureaus. So, this type of financing will not help you boost your credit score. Merchant cash advance companies are not required to report to credit bureaus.

Note: If you need to build credit, it may be better to start with Net30 vendors that report to credit bureaus. However, you won’t have the freedom to use the funds outside the companies that finance your purchases.

Have you heard about the free Stripe Corporate Card benefits?

Stripe Capital Eligibility Requirements

Stripe Capital requirements are still in the evolution stage. As of right now, funding is offered to select merchants. Yet, this is expected to change.

As of today, if you have not received an email from Stripe or a notification in your dashboard that invites you to accept an offer for funding, you may not qualify. However, you can let the company know that you are interested in the program. Even if you’re not sure you will accept when the time comes, now might be a good time to get your name added to the list. Visit https://dashboard.stripe.com/capital to register your interest.

Register Interest in Stripe Capital Loan

The system is powered by a machine-learning API that looks for certain eligibility criteria. These criteria include sales volume and transaction history. And, this works with low credit barriers because of the repayment structure.

You might also like: What’s the Best Payment Processor for a Small Business? Really

Stripe Capital Repayment Terms

Repayment for Stripe Capital doesn’t look like what you’re probably used to if you’re only familiar with loans and credit cards. Actually, payments are set up more like a merchant cash advance (MCA). Instead of paying a set amount each billing cycle, your loan is paid back daily from a percentage of your online sales.

So, one day, you may make a payment over $1K, the next day, if you have no sales, you don’t make a payment. Smaller loans will have a smaller daily percentage take out than larger loans. These numbers might range from 9% to 15% of daily transactions. And, when you don’t make a payment, there will be no penalty. This is a super convenient repayment option for anyone.

How Much Will You Pay?

Obviously, no financial service comes without a cost, so here’s the catch. You will pay a set fee on top of the amount of your loan. While the fee will vary, here’s what you can expect.

The set fee that you will pay for your loan might be around 10%, according to the current advertising. So, a $15K Stripe cash advance might cost about $1,500. Does this stack up to the existing competition? Take a look for yourself.

MCA Company	Advance Fee	Fees for $15K Loan	Fees for $30K Loan
Stripe	~10%	~$1,500	~$3,000
Lendio	18%+	$2,700+	$5,400
Fundbox	4.66%+	$699+	$1,398+
CanCapital	3% + $595	$1,045	$1,495

As you can see from the table, each MCA provider has varying fees. And, their repayment terms can range from 5-20% of daily transactions. Slow repayment with a company offering a variable rate can cost a lot in the long run.

Frequently Asked Questions

What is Stripe Capital

Stripe Capital is a merchant cash advance offered to select, existing Stripe customers. They offer next-day access to funds that can be repaid as a percentage of daily sales.

Does Stripe do a credit check?

For Stripe Capital, no — Stripe does not do a credit check. Instead, offers are extended to high-volume transactions that take place on the payment platform.

Does Stripe offer financing?

Yes! Stripe offers financing to existing users based on transaction history. Stripe Capital and the Stripe Corporate Card are two options.

Conclusion

It’s always been crucial to keep enough capital on-hand to power your operations. And, if you’ve been affected by the situation, you know why. If you are a high-volume seller and existing business customer, Stripe Capital may have just what you need to move forward and keep your doors open or even scale your business as you planned.

While merchant cash advances (MCAs) aren’t my go-to for recommended business funding, this is a legit offer for Stripe users who need funds quickly. With that said, do your due diligence and shop around before you accept a financial offer from any lender.

And, if you’re interested in learning how to obtain up to $100K in business credit in as few as 30 days, join Business Credit Workshop today!

What is a Revenued Business Card?

What is Pearl Capital MCA Funding?

Revenued Business Card Requirements

Company Overview

How Does a Revenued Business Card Work?

1. Flexible Line of Credit

2. Control & Monitoring

3. Super Quick Funding

4. Dedicated Support

Frequently Asked Questions

Does Revenued do a hard pull?

Is there an annual fee for the Revenued business card?

What is the minimum credit score for Revenued?

Who does the Revenued business card report to?

Conclusion: Is the Revenued Business Card Legit?

What is Bitty Advance?

Company Overview

What to Expect With a Bitty Advance MCA

Frequently Asked Questions

How do I get approved for Bitty Advance?

Can a merchant cash advance hurt your credit?

How do I know if a loan company is scamming me?

Conclusion: Is Bitty Advance Legit?

What is Shopify Capital?

Company Overview

What are the Benefits of Shopify Capital?

Shopify Capital Loan Summary

Shopify Capital Eligibility Requirements

Shopify Capital Terms & Repayment

How to Apply for Shopify Capital

Shopify Capital Alternatives

Frequently Asked Questions

Can you negotiate Shopify Capital?

How long does it take for Shopify Capital to be approved?

What percentage of profits does Shopify take?

What company owns Shopify?

Conclusion: Is Shopify Capital Funding Worth it?

What is National Funding?

Who Owns National Funding?

Does National Funding Report to Credit Bureaus?

How to Qualify for a National Funding Loan

Small Business Funding Offer Overview

1. Small Business Loans

2. Business Loans for Bad Credit

3. Equipment Financing & Leasing

Conclusion

What is Stripe Capital?

How much working capital can you get from Stripe?

Does Stripe report on-time payments to credit bureaus?

Stripe Capital Eligibility Requirements

Stripe Capital Repayment Terms

How Much Will You Pay?

Frequently Asked Questions

What is Stripe Capital

Does Stripe do a credit check?

Does Stripe offer financing?

Conclusion

Business Credit Blog

Recent Posts