Understanding Frequency of Payments

Why do we utilize daily or weekly payments?

Daily or weekly payments can feel frequent when compared to monthly payments for a traditional bank loan. However, our product is not a loan, and that makes it different in a lot of valuable ways. Here are just a few reasons why this payment frequency helps us to offer such an innovative funding solution for our small business customers.

• Enable Product Flexibility – Our product is an alternative financing method with eligibility criteria that are more accessible than a traditional bank loan. The product features we offer make us uniquely suitable for small businesses. They also require us to assume more risk that needs to be carefully managed, which is one reason why daily or weekly payments are so essential.
• Monitor Performance Effectively – Our revenue-based financing has an estimated payment period of 3 to 12 months. With these shorter estimated term lengths, a higher payment frequency helps us to effectively monitor our customers’ performance.
• Offer Support Quickly – Unlike a traditional small business bank loan, payment relief is built into our product and available to all of our customers. With revenue-based financing, payments can fluctuate based on a business’s revenue. So if revenue decreases, payments can too. Daily or weekly payments help us to be informed of changes in performance or revenue more quickly and offer support when it’s needed the most.

Smaller, more frequent payments may also be beneficial for small businesses that carry lower cash balances. It can be helpful to know how much is needed in their account on a daily or weekly basis versus budgeting for one large payment each month. And if at any point our customers’ daily or weekly payments become higher than the percentage payment contracted, they can contact our Account Servicing team to request that their payments be reduced accordingly. They can also request a refund of any overages paid while their revenue was in decline.