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How business funding works | Berkley Financial Group

How business funding works

No jargon. Here’s how the money works, what it costs, and what you’re agreeing to.

Up to $1 million against your future revenue.

Apply in minutes. Fast approvals, 24 hour funding.

  • No hard credit pull
  • Clear terms before you sign
  • No obligation application

The product

What a revenue advance is

A funder buys a set amount of your future revenue at a discount and gives you the money now.

Say a funder advances $100,000 and buys $130,000 of your future receipts. You get $100,000 today and remit until $130,000 is paid. The $30,000 is the cost.

This is a purchase, not a loan. No interest accrues, no amortization schedule, no monthly statement. The amount is fixed on day one and it stays fixed.

  • $100,000You get today
  • $130,000You remit in total
  • $30,000The fixed cost

Figures are illustrative and shown to explain the timing gap. Your numbers will be your own.

Repayment

How remittance works

Repayment comes out of your business account automatically, daily or weekly, in fixed amounts set at closing.

Daily on a 12-month, $130,000 payback runs roughly $520 a business day. Weekly on the same deal runs roughly $2,600.

Weekly is easier to live with for most businesses and it’s worth asking for. We ask for you.

Figures are illustrative and shown to explain the timing gap. Your numbers will be your own.

  • Daily ≈ $520
  • Weekly ≈ $2,600

Cost

What it costs, and how to read the number

Cost is expressed as a factor rate, a multiplier rather than a percentage. A factor rate of 1.30 on $100,000 means you remit $130,000.

A factor rate is not an interest rate and it doesn’t compare to one directly. The same advance over six months and over eighteen costs identical dollars and does very different things to your cash flow.

Two numbers decide every comparison. The total dollars you remit, and the amount that leaves your account each day or week.

Get both in writing on every offer. We put both in front of you on all of them.

Read more: What is a factor rate

Underwriting

What a funder is actually looking at

  • Deposit consistency

    Steadiness matters more than size. Twelve deposits at $20,000 reads better than two at $120,000.

  • Time in business

    More history means more to underwrite against.

  • Account activity

    How your balance behaved over the last three months. This moves more offers than credit scores do.

  • Existing positions

    What you’re carrying and to whom.

  • Industry

    Some funders are excellent in your trade and some never touch it.

  • Personal credit

    One input, weighted differently by every funder.

UCC filings

What gets recorded

Most funders file a UCC-1 against the business. It’s a public notice that they have an interest in your receivables.

It isn’t a lien on your equipment, your building or your house, and it isn’t a judgment. It runs five years unless terminated or continued, and other funders can see it.

Read more: What is a UCC filing

When something else is the better move

  • When you have time

    If the need is 90 days out and you qualify for a bank product, take the cheaper money. An advance is priced for speed.

  • When the gap isn’t timing

    An advance bridges money going out and money coming in. That’s the job it does well.

  • When you’re carrying a lot already

    Remittance stacks. We’ll show you what another position does to the account before you decide.

We say all three out loud, and we say them early. It’s the fastest way to get you to the right answer.

Comparing offers

How to compare two offers

Ask both questions of every offer on your desk.

What are the total dollars I remit? Not the factor rate. The dollars.

What leaves my account, and how often?

Then divide. Two offers can cost the same in total and feel completely different on a Friday.

Ask what early payoff does, too. Some funders discount it meaningfully and some don’t. We ask for you.

Figures are illustrative and shown to explain the timing gap. Your numbers will be your own.

Berkley

Where we come in

We know which funders want which kind of business, and how an application has to be built to get the strongest answer out of them.

That’s the whole job, and it’s why the same business gets very different results depending on who’s handling it.

Berkley is a brokerage, not a funder. The funder makes the decision and sets the terms.

Find out what you can get.

Apply in three minutes and we’ll tell you where you stand today.

Apply in minutes. Fast approvals, 24 hour funding.

Berkley Financial Group LLC is a funding brokerage, not a lender. Funding is arranged by Berkley and provided by third-party funders, who make the credit decision and set the terms. Not a commitment to fund. All financing subject to the funder’s approval.

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