Revenue-Based Lending
Diversity lending
We realize there are diversity challenges faced by women, people of color, veterans, and businesses in low to moderate-income areas. Revenue-based financing allows more flexibility than traditional bank debt with no equity dilution. This is similar to a term loan, but instead of a fixed payment every month, a percentage of revenue is taken.
This allows for smaller payments during slower revenue months, and larger payments in stronger months.
Business Characteristics
- Businesses with revenue of $1MM or higher
- Ownership Requirements:
- Woman owned
- Person of Color owned
- Veteran owned
- LGBTQ+ owned
- Companies located in low to moderate income areas
- Companies that have committed to inclusive hiring initiatives
- Profitable, break-even or clear path to profitability
- Growing revenues or positive trends
- Recurring contracts and predictable revenue models are a best fit
- Time in business: 12-18 months minimum
Lending Criteria
- Term: 2 - 5 Years
- Funding amounts from $50K - $1MM
- Revenue-Based Financing:
- A portion of revenues will be paid monthly at a pre-established percentage until the principal and additional fees have been repaid
- Typically 3%-9% of monthly cash receipts
VA250 Commemorative Partnership
EFA Heritage Business Financing is proud to be a Commemorative Partner of VA250 - Virginia's American Revolution 250 Commission. Of the thirteen original colonies, none played as fundamental a role as Virginia in the formation of our country. From the ideas that inspired it, to the battlefields that decided it, there is simply no America without it. As we mark 250 years of Independence, now is the perfect time for you to reconnect with your country in the place that made it possible. Please join us at VA250.org.
