Access capital in 1-2 days with flexible repayment schedules strictly tied to sales.
If your an asset-lite business, or your assets are tied up with another creditor, sales based financing may be a viable option to raise capital. With sales based financing you can access 5-15% of your trailing 12 month sales, in as fast as 1-3 days. In exchange, you pay back a fixed sum of capital over 6-24 months.
At the Capital Desk, we offer an array of loan and non-loan products. Choose the financing categories below to explore more.
Subordinated debt provides junior capital that complements existing senior financing, helping businesses fund acquisitions, expansion, partner buyouts, recapitalizations, and other strategic initiatives. It’s an ideal solution for companies seeking additional capital while preserving ownership and minimizing equity dilution.
Revenue-based financing provides growth capital that is repaid as a percentage of future revenue, allowing payments to fluctuate with business performance. This flexible structure helps businesses invest in hiring, marketing, inventory, or expansion without fixed monthly loan payments or giving up equity.
A merchant cash advance provides quick access to capital based on future receivables or sales. While typically more expensive than traditional financing, it can be an effective solution when timing is critical or other financing options aren’t available. Capital Desk evaluates all available alternatives before recommending an MCA.
Unfortunately for many companies, given time constraints or eligibility criterion, MCA may be the only option.
We serve clients nationwide, and have delivered capital to 48 States, Puerto Rico, and Canada.
Since September, 2023, we’ve deployed $150M+ to clients across an array of industries.
Because sales based financing companies don’t need as many docs, they are able to fund in 1-3 days. All deals depend on complexity and client responsiveness. Companies that leverage sales based financing are taking advantage of certainty and speed to close.
Uniform Commercial Code, Article 9 (UCC-9) treats Accounts as an asset which can be financed, including present and future sales, whether earned or unearned. This includes traditional receivables for work already delivered, purchase orders, and future receivables and sales for customers who have yet to walk in the door. Because there are numerous types of “Accounts” which can be financed under the UCC, Sales Based financing tends to fit in wherever you need it to on your capital stack – as senior, junior, or somewhere in the middle of debt and equity (which often times, is completely unsecured by assets).
1-2 days, depending on how responsive the cllient is. Sales based financing deals require less documents than traditional funding partners.
Generally, no. Most times a personal guarantee is replaced with a validity guarantee (the company guarantees that the information submitted in order to take financing is true, accurate etc.) as well as performance guarantees (the company guarantees to not deliberately violate any terms of the agreement), and bad boy guarantees (the company’s owner agrees not to do anything fraudulent, gross misrepresentation, etc.). If a validity, performance, or bad boy guarantee is violated, then the funding partner has recourse as if it was a personal guarantee. If the owner simply plays by the rules of the deal they signed up for, then they will be protected personally, even if the business has a dramatic slowdown in sales and cannot meet the funders required payment.
Sales based financing (SBF) transactions fund very fast and with a high degree of certainty. Therefore, companies pay for the expediency and certainty to get the capital they need, when they need it. As such, SBF is often used for exigent circumstances (growth opportunity cost), special situations the company finds itself in, or an existential situation (which is rare, but happens). When certainty to close is the most important, sales based financing is a viable solution.
Future Accounts under the UCC, merchant cash advance, and commercial cash flow or “merchant loans”. In the lower to middle market, these would be known as “junior”, “mezzanine”, or “subordinated” loans.
In many ways, yes. But it’s different in one key aspect. By definition, a funder that requires payment of principal no matter what is called a lender. A lender has a right to collect principal (and potentially more) no matter what the circumstance, i.e. an “absolute” right to collect. However, with a true SBF, that’s not always the case. Many SBF funders tie their repayment as as Specified Percentage of sales, i.e. a short-term, fixed royalty; unsecured by assets. And many of those types of funders have clauses that say going out of business because of a a decline in sales is not an event of default*. While commercial deals look and act the same in many ways, we are able to determine if it’s a loan, acts like a loan, or is a true SBF. Because it’s important companies know what the terms are that govern the commercial financing relationship.