Why Do We Utilize Daily or Weekly Payments?
Daily or weekly payments can feel frequent compared to the monthly payments that are more common with traditional financing options. However, this payment frequency helps Capital Funds offer an innovative and flexible funding solution for small business customers.
Enable Product Flexibility
Our product is an alternative financing method with eligibility criteria that are more accessible than traditional bank loans. The features included in our financing solution make us uniquely suited to support small businesses.
However, these features also require us to assume a higher level of risk. Managing this risk carefully is one of the key reasons why daily or weekly payments are essential.
Monitor Performance Effectively
Our revenue-based financing typically has an estimated payment period of 3 to 18 months. With these shorter estimated term lengths, a higher payment frequency allows us to monitor our customers’ performance more effectively and stay closely aligned with their revenue activity.
Offer Support Quickly
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. If revenue decreases, payments can decrease as well.
Daily or weekly payments allow Capital Funds to quickly recognize changes in business performance and provide support when it is needed most.
Benefits for Small Businesses
Smaller, more frequent payments can also be beneficial for businesses that maintain lower cash balances. Instead of preparing for one large monthly payment, business owners can manage their finances more easily by knowing how much is required on a daily or weekly basis.
If at any time a customer’s daily or weekly payments exceed the agreed-upon percentage of revenue, they can contact the Capital Funds Account Servicing team to request an adjustment. Customers may also request a refund for any overpayments made during periods when their revenue was declining.