Get Prepared to Qualify

Before we begin you should know that We Are Not a Bank!!  And these are high risk (for our lending partners) no collateral needed loans that uses a factoring rate instead of a typical interest rate percentage. So, if you have collateral, a decent credit score, and can wait 4-8 weeks for your application to process—we suggest that you apply at your local banking institution or the Small Business Administration (SBA). 

Although there are pros and cons of acquiring a revenue-based cash advance, the requirements are not as stringent as a conventional bank or SBA loan and our lenders use factor rates to determine how much you’ll pay for the loan instead of a typical interest rate percentage. 

So, how much can you qualify for? That depends on your verifiable monthly revenue. Typically, our funding partners will approve an amount that equals 1-2 times of a company’s monthly revenue base. For example, if a business is generating $20,000 per month, the owner could get approved for and collect between $20,000 and $40,000 within 2 business days—if not sooner.

Verification of your reported sales revenue is required so our funding partners will need a way to access your sales records either by linking to your company's business bank account or the applicant downloading and transmitting copies of the company’s bank statements that covers three consecutive months of sales revenue. Re-payments terms will be determined by the funding option you chose and will be deducted on a daily or weekly basis, to eliminate large monthly payment obligations.

Even after going through the validation and approval phase, the owner still has the option of accepting or rejecting the final offer without any obligation or admin fees attached to the offer.

A Few More Suggestions:

As an owner, you should be able to confidently discuss your business sales, expenses, gross and net profits. You should be aware of any new store-opening that could impact your business and have a plan to minimize, keep, or improve your market share in case it happens.

The most successful business owners consistently review and evaluates their financial records and the overall performance of their business operation. And if you haven't already, use the list below to organized and store your business records digitally for easy access and evaluation. 
 
•    A copy of a valid ID (driver’s license or current passport).
•    Acquire, review and know your FICO (credit) score.
•    Three to six months of your personal and business bank statements.
•    Current and signed Profit and Loss statements (within 60 days).
•    Business and personal financial statements and tax returns--up to three years.
•    Business license and other certificates needed to conduct your business.
•    Business overview and history, including goals, challenges, and use of funds.
•    Copies of agreements with suppliers and clients.
•    Copy of office lease or statement from landlord on terms.
•    Franchise agreements (if applicable).
•    Copies of current and past funding applications.
•    Ownership structure and any partner affiliations.
•    Personal resume including business experience of each principal.

More than likely, you will only need a few of the items above during the initial application process. My goal is to help clients prepare for that occasion and the list above is just a guide and no guarantee that your application will be approved--even if you follow the entire list. 

You should also know that making consistent and regular bank drops, on your part is practically a requirement. But having to many NSF (non-sufficient funds) or negative balance days reported on your bank statements will generate red flags that could be a deal-breaker for your funding request.

In closing, DAC and its funding partners will work tirelessly to get applicants the lowest-cost funding available through their numerous partner agencies. I hope the information provided here will help you get prepared for the process and if you decide to apply for one of our funding offers read this notice before you start your application.

If you need more assistance, download and fill out the form at the bottom of this page and submit the completed document by email and I will do my best to reply to all messages within 24 hours or less.