Understanding the cost

VIP Capital Funding offers a plethora of Financial Products based off the many different ways small businesses generate revenue. Before managing the risk of taking on funding, you must be able to predict the amount of time that the capital deployed takes to make a return on your investment. Whether that intention being a short term fix from a business hiccup or an offensive purchase of inventory, whatever the case maybe; case in point is that the capital should be used to help generate more revenue, which results in more profit.  Next is understanding the cost, as cost is determined by both time the funds are borrowed and risk to the lender based off the merchant’s profile. A Traditional Bank Loan at 8% APR over 5 years is equivalent to our Short-Mid Term Working Capital at 1.40 Factor Rate. Reason being, the Bank Loan is 40% over 5 years, and our Short-Mid Term Working Capital Loan is 40% over 6-18 months. The key difference here is the term length. Don't let a Traditional Bank fool you with single digit interest rates as that is interest rate paid annually and certainly adds up over the year. Take your house for instance over a 15-30 year mortgage and multiply the percentage; it's a lot! We give you the cost with simplicity and total transparency. As mentioned if your business is predicted to make a return every 6-12 months it wouldn’t make sense to take on a Traditional Bank Loan at the same cost and a lower amount offered if you’re predicted profits are substantially less than that. For example, a merchant gets approved from a bank for $100k for 5 years after a 90 day process and we are able to approve a merchant for $200k for 12 months (We are able to lend 100%-500% more than Traditional Banks) after a 24-48 hour process. We are able to offer $200k every year with prepayment discounts, that is $1M over 5 years because we are able to offer you $200k every year compared to $100k over 5 years from a bank with prepayment penalties. As your business grows, this amount is subject to substantially more. In the given example, that is 1000% more capital put to work for your business at the same cost, just shorter repayment periods. In fact the short repayment lengths are statistically better for small businesses as there is a lower default ratio and higher growth in annual revenue. However if your business takes a longer time to see a return on an investments we have banking partners with SBAs and Term Loans that we graduate many of our clients to that isn't as stringent as a traditional bank.

Our small business funding is designed to keep your business sailing in deep water and infused with the lifeblood of business, working capital; every 3-6 months. Not to mention we are able to get you more capital after your term is 40%-50% paid down. Our capital is ideal and designed for small business owners as the funding is given in large enough amounts and given frequently to put to work at approximately the same cost. Traditional Banks are not only lending less, but also can take a lot of time to close up to 90 days. Timing is crucial in this fast paced business world we live in today. Our capital is also tax deductible and there are prepayment discounts not prepayment penalties. Unlike banks which is backed by the government, our funds are from Private Investors and Venture Capitalists who not only believe your business will be able to repay the termed loan, but be able to grow from it as well.

VIP Capital Funding strives to build long term relationships across all of their clients and graduate their clientele to better terms and rates along the way. Ideally we want all of our clients utilizing both short-mid and long term small business loans as a solution for both short and long term needs as our Banking Partners have Termed Bank term Loans and SBAs that are also designed for small businesses unlike a Traditional Bank Loan.

The primary focus is you. Let’s move forward and get the funding you want. Give us a call, fill out the funding application or fill out the form above for a brief consultation and we will be in touch with you shortly. We are available 24-7, and there are multiple ways to contact us.