Revenue Based Funding is Tough!
Revenue-based loans for businesses are something of a chicken and egg situation. It goes like this:
- You have a great idea for a business.
- You need all the things to start a business (licenses, office space, employees, advertising, equipment).
- You need capital to get all the things to start a business.
- You don't have the capital
- You try to get a loan.
- The revenue-based lenders say: "well how much revenue have you generated and how long have you been in business"?
- And you hang your head and say "I need capital before I can generate revenue or be in business."
- Mr. Banker rushes you out the door with a polite good-bye and refusal.
But there is hope elsewhere!
There are startup capital loans based purely on personal FICO. And there is business funding for ever-increasing amounts initially based on personal FICO.