Business Advance (MCA)
A Business Advance from BH Capital Funding provides businesses with a lump sum of capital upfront, which is repaid through a percentage of daily sales. This product is ideal for businesses needing immediate funds to manage cash flow, invest in growth opportunities, or cover unexpected expenses.
Key Features:
- Quick Access to Funds: Receive a lump sum upfront to manage various business needs.
- Flexible Repaymen: Repay the advance through a percentage of daily sales, ensuring repayments are in line with revenue.
- No Fixed Monthly Payments: Repayment is based on sales, so there are no fixed monthly payments.
- No Collateral Required: Business advances do not require collateral, making it easier to secure funding.
- Transparent Terms: Clear and straightforward terms with no hidden fees.
Benefits:
- Improved Cash Flow: Get immediate funds to manage cash flow fluctuations and cover operational costs.
- Growth Opportunities: Invest in new opportunities, purchase inventory, or expand your business with ease.
- Flexible Repayment: Pay back the advance through a percentage of your daily sales, ensuring repayments match your revenue cycle.
- Quick Approval: Fast approval process with minimal paperwork, so you get the funds when you need them.
How It Works:
- Application: Simple and quick application process.
- Approval: Fast approval times, ensuring you get access to funds quickly.
- Receive Funds: Get a lump sum advance directly into your business account.
- Repayment: Repay the advance through a percentage of daily sales until the full amount is repaid.
Lending Criteria and Guidelines
Based on the guidelines from various funding documents, here are the criteria categorized into A-D paper guidelines:
A Paper:
- Time in Business: Minimum 2 years.
- Monthly Revenue: $100,000+
- Credit Score: 650+
- Bank Statements: Last 6 months of business bank statements.
- Documentation: Signed application, proof of ownership, and recent tax returns.
- NSF/Negative Days: No more than 2 NSFs per month.
- Industries: Excludes high-risk industries such as adult entertainment, firearms, and cannabis.
B Paper:
- Time in Business: Minimum 1 year.
- Monthly Revenue: $50,000 - $100,000
- Credit Score: 600+
- Bank Statements: Last 3 months of business bank statements.
- Documentation: Signed application, proof of ownership, recent tax returns, and financial statements
- NSF/Negative Days: No more than 4 NSFs per month.
- Industries: Includes moderate-risk industries with additional scrutiny.
C Paper:
- Time in Business: Minimum 6 months.
- Monthly Revenue: $20,000 - $50,000
- Credit Score: 550+
- Bank Statements: Last 3 months of business bank statements.
- Documentation: Signed application, proof of ownership, and recent tax returns.
- NSF/Negative Days: No more than 6 NSFs per month.
- Industries: Includes most industries, subject to additional conditions.
D Paper:
- Time in Business: Minimum 3 months.
- Monthly Revenue: $10,000 - $20,000
- Credit Score: 500+
- Bank Statements: Last 3 months of business bank statements.
- Documentation: Signed application, proof of ownership, recent tax returns, and financial statements.
- NSF/Negative Days: No more than 8 NSFs per month.
- Industries: Open to almost all industries with detailed review and higher scrutiny.
Eligibility:
To qualify for a Business Line of Credit with the Lion Capital Fund, your business should have a stable revenue stream and a good credit history. Specific eligibility criteria may vary, and we work with businesses to understand their unique financial situations.