After the crash, specifically in 2009-2010, the capital markets for small to medium-sized businesses dried up and the difficulty in placing debt for these entities was nearly impossible. Unfortunately, taking the place of our brick and mortar banks in the capital markets was hard money lenders.
Most businesses have probably either been solicited directly for these types of loans or have at least seen the commercials on TV or heard them on the radio. Revenue Based Loans or Merchant Loans as they have become to be known, are low security high fee loans to businesses at any stress level. While many claim to have no collateral, many avoid usury laws by claiming they purchase future receivables.
We have developed what we believe is perfect relationships in this market to avoid the usurious fees associated with this type of debt. Approvals within hours and money within days, when used right, this capital can assist in growth or recovering from an adverse event.
