Tier 1 Consolidation
The Tier 1 Advance Model is very unique in the sense that it’s a bit of a combinationbetween a factor and a term loan. The Tier 1 Advance features weekly/monthly payments and is commonly used for the purpose of consolidation of existing cash advance debt (monthly discount rate increased to 1.975% when consolidating). Oneof the most appealing aspects of this funding model are the early payoff benefits. Atany point after six months, clients may pay the remaining principle owed without any penalties or fees.
Additional Submission Requirements
Brief Executive Summary (a few paragraphs is fine) describing the company, principles and reason for the funding request. Six most recent business bank statements. 2018 and 2019 year-to-date (YTD) Balance Sheet. 2018 and 2019 year-to-date (YTD) Profit & Loss Statements. Debt Schedule (if applicable): Should includeall total outstanding balance(s), listed individually. Legible copy of driver’s license and voided check(s) for all active business bank accounts.
Are you a business owner? Is your business having cash flow problems? In today's world the only thing keeping a small business owners company growing is positive cash flow and robust working capital. Just because a customer is late on an invoice doesn’t mean that you can be late on payroll. And if you want to expand your business or order more inventory, you’re going to need cash on hand to do it.
As skilled as you may be at forecasting and managing your income and expenses, opportunities can come at you unexpectedly. For example, maybe that big-box store wants to place a large order for your products — that means you must put in an order first and accept the chain’s long payment terms. Would you be able to afford it?
Fortunately, at Lighthouse Business Capital we have access to the best small business loans in the marketplace. As a marketplace broker platform, we can offer many options available to small businesses that other traditional banking options may not.
Designed for businesses that have multiple loans outstanding (stacked) and are looking to lower their payments. This program is used to pay off existing balances (as initially agreed to), while alleviating the stress on imposed on cash flow by the remaining payments associated with those balances.The funding process is “Layered” in a sense that each week, a deposit is made into your business bank account. This deposit is equivalent to the total dollar amount of payments that are scheduled to be deducted from your account that week (by existing lenders). Rather than having to focus on maintaining multiple payments, a new deposit covers them each week until those balances have been paid. In turn, you pay one, significantly reduced daily payment. Approvals that are granted generally exceed total outstanding debt, allowing your business to secure additional capital up front in this process.
Zero Net Consolidation
Until recently, in order to consolidate multiple cash advances, your business would need to qualify for a new loan amount equivalent to twice that of the total outstanding debt, so that your business would “Net” 50% of the new loan amount (after paying off all existing balances). Many business owners involved with multiplecash advances fall into a cycle of renewing one advance to keep up with payments on the other, making it very difficult for businesses to ever reach that 50% point. This is a common scenario, addressed quickly and easily through the Zero-Net Consolidation Program. Utilizing this model, we have the ability to consolidate all existing debt, or leave the largest position untouched (coming in “Second Position”),without requiring the business net a specific percentage of the loan amount in orderto qualify.