Disclosures

This page expands on the disclosure that appears in the footer of every page on this website. Please read it before submitting an application or signing anything with a funding partner.

The short version

The rest of this page explains each of those points.

What Berkley Financial Group is

Berkley Financial Group LLC is a New York limited liability company operating as an independent sales organization. Berkley's role is to learn what a business is trying to accomplish and what its financial position looks like; assemble and submit an application to one or more unaffiliated third-party funding partners; present offers that come back and explain how they are structured; and coordinate between the business and the funding partner through closing.

That is the whole of the relationship. Berkley is an intermediary.

What Berkley is not

Berkley is not a lender, a bank, a credit union, or a finance company. Specifically:

• Berkley does not provide capital. No money that reaches a business comes from Berkley.
• Berkley does not underwrite. Berkley does not evaluate credit, verify financials for approval purposes, or perform any part of a funding partner's underwriting process.
• Berkley does not make approval decisions. Berkley cannot approve, decline, or condition a transaction. Only the funding partner can.
• Berkley does not set terms. Amounts, cost, remittance structure, duration, and every other term are set by the funding partner.
• Berkley does not service transactions. Once a transaction closes, the relationship on the funded amount is between the business and the funding partner.
• Berkley is not the agent of any business that applies through it. Berkley does not owe a fiduciary duty to applicants, and nothing on this website creates one.

How Berkley is paid

Berkley is compensated by its funding partners in the form of a commission when a transaction closes. Commission rates may vary by funding partner and by product, which may affect which offers are presented. Berkley's services are provided at no cost to the applicant, and working with Berkley does not increase the amount a business pays to its funding partner.

Every offer is presented with its full terms so a business can evaluate it on its own merits, and no business is ever obligated to accept any offer Berkley presents.

Approval, amounts, cost, and timing are decided by funding partners

• Approval is not guaranteed. Submitting an application, speaking with Berkley, or receiving a preliminary indication does not mean a business will be approved. Each funding partner makes its own approval decision based on its own underwriting criteria.
• Amounts are not guaranteed. Where this site references funding of up to $10 million, that is a stated ceiling for the programs Berkley works with. It is not an amount any business should expect.
• Cost and terms are not guaranteed. Berkley does not set, quote, or control pricing. Any cost figure seen before a written offer from a funding partner is not a quote.
• Timing is not guaranteed. Funding can move quickly in this market, and in some cases very quickly, but no timeline stated by Berkley or anywhere on this site is a commitment.

The scope of what Berkley offers

Berkley arranges funding through its network of funding partners. Berkley does not represent every funder or every product in the market, and businesses are free to compare offers arranged through Berkley with any other source of capital, including banks, credit unions, and SBA lenders.

Figures shown on this website are illustrative

Any dollar amount, cost figure, payment example, timeline, calculator output, scenario, or sample transaction appearing anywhere on this website, in Berkley's advertising, or in any document Berkley provides before a written offer is illustrative only.

Illustrative figures explain how a structure works. They are not offers, not quotes, not pre-approvals, and not predictions of what any particular business will receive. Only a written offer and the executed agreement from a funding partner state actual terms.

Any testimonial, review, or example of a funded business that may appear on this website or in Berkley's advertising reflects one business's individual experience. It is not a claim of typical results, and it is not a representation that any other business will obtain a similar outcome. Results vary.

Berkley does not provide financial, tax, legal, or accounting advice

Berkley is not a financial advisor, investment advisor, tax advisor, accountant, or law firm, and nothing Berkley provides is advice in any of those categories.

Information on this website is general and educational. It does not account for any specific business's circumstances. Whether a particular funding structure makes sense, how it will be treated for tax or accounting purposes, and what its legal consequences are should be reviewed with your own attorney, accountant, and tax advisor before signing anything.

How a merchant cash advance is structured

Much of the funding Berkley arranges is structured as a merchant cash advance. This structure differs from a loan in ways that materially affect a business.

A funder purchases a specified dollar amount of a business's future receivables at a discount. The business receives an agreed sum up front. In exchange, the funder acquires the right to a set percentage of future sales, or a fixed periodic remittance, until the purchased amount of receivables has been delivered.

What follows from that:

• It is a purchase, not debt. The transaction is documented as a sale of a future receivables asset. The agreement uses purchase and sale language.
• Cost is expressed differently. Pricing is typically stated as a factor rate and a total dollar amount, not as a periodic rate. Compare on total dollar cost.
• There is generally no fixed maturity date. Delivery continues until the purchased amount is satisfied. If sales slow, delivery may take longer. If sales accelerate, it may finish sooner.
• Remittance is tied to sales activity. Depending on the agreement, it may be a percentage of daily or weekly receipts, or a fixed periodic amount subject to a reconciliation provision.
• Reconciliation provisions vary and matter. Many agreements include a mechanism to adjust remittance if actual sales differ from projections. Availability and how to invoke it differ between funding partners. This is one of the most important provisions to read.
• Personal and performance guarantees are common. Many agreements include a guarantee from an owner, frequently limited to breach or misrepresentation rather than business performance, but scope varies.
• Consequences of default are defined by the agreement. What constitutes a default, and what a funder may do, are set out in the funding partner's agreement.

UCC-1 financing statements

It is common for a funding partner to file a UCC-1 financing statement in connection with a merchant cash advance. Expect this.

A UCC-1 is a public notice filed with a state office identifying the business and describing the assets in which the funding partner asserts an interest, which in a receivables purchase are typically the purchased receivables and, depending on the agreement, other business assets.

Practical consequences:

• It is public. Other funders, vendors, and credit reporting services can see it, and many monitor UCC filings actively.
• It can affect access to other funding. Some funders will not proceed when a prior filing is in place, and many agreements prohibit taking on additional funding while the transaction is outstanding.
• It does not clear itself. Termination after the transaction concludes generally requires the funding partner to file a termination statement. Confirm this has happened.
• Scope varies. Some filings are limited to specified receivables and some are broader. Review the collateral description and the corresponding provisions of the agreement before signing.

Berkley does not file UCC financing statements. Any filing is made by the funding partner.

Third-party websites and content

This website may link to or reference third-party websites, tools, and materials. Berkley does not control them, does not endorse them by linking, and is not responsible for their content, accuracy, privacy practices, or availability.

No offer, no commitment

Nothing on this website constitutes an offer of funding, a commitment to arrange funding, or a solicitation in any jurisdiction where Berkley is not permitted to operate. Berkley may decline to work with any business for any lawful reason.

Governing law

This website and these disclosures are governed by the laws of the State of New York, without regard to its conflict of laws principles. Nothing here governs any agreement between a business and a funding partner. Those agreements have their own governing law and dispute resolution provisions, which may differ.

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