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What are your Terms?

The funding is generally structured as debt with a fixed interest rate between 9 and 15%, and an opportunity for us to earn some additional interest (“Success interest”) if mutually agreed upon financial goals are met or exceeded. Repayment is structured to fit your needs. Loan repayment may be over 3-7 years with interest-only for a period of time, if warranted.

For what purposes may I obtain Venture Capital / Angel Funding?

Funding is available to support growth or for acquisition of existing businesses. We can help businesses on the cusp of a turnaround. Generally, your business will need several hundred thousand dollars of existing annual sales to be a good candidate.  Start-ups will generally not qualify.  Borrowers take best advantage of our funding when they leverage their dollars or other borrowed dollars with our funds. Frequently our funds serve as additional “down money” or, “seed money” to help borrowers obtain bank or other funding to achieve business goals.  We are great at filling gaps in funding. Using TABASFUNDING to repay existing debt generally is not a good use.

Do you serve any particular size or type of business?

We are open to any type of business. Our Venture Capital / Angel Funding generally serves businesses with annual sales of $250,000 to $20 million.

What is the size of the funding that I could obtain from you?

You may apply for $50,000 to $750,000 or more.

Do you have credit requirements?

Yes, principals must have reasonably good personal credit, and be willing to guarantee. Principals and businesses should be current in their bank loans and taxes or current on any agreements to catch up.

Do you have any geographical funding requirements?

For logistical reasons, our trade area is Pennsylvania, New Jersey, and Delaware. See below for the full list of areas we serve:

Areas We Serve

Pennsylvania, New Jersey, Delaware, Delaware Valley, Lehigh Valley, Harrisburg, Allentown, Bethlehem, Easton, Main Line.

Pennsylvania Counties:
Berks, Bucks, Carbon, Chester, Dauphin, Delaware, Lackawanna, Lancaster, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Philadelphia, Schuylkill.

Central New Jersey Counties:
Hunterdon, Mercer, Middlesex, Monmouth, Somerset.

Southern New Jersey Counties:
Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Salem.

Delaware County:
New Castle

What are the pros and cons of TABASFUNDING versus other financing?

Financing through your neighborhood bank is generally the least expensive way to go for money. The drawbacks are you may not be able to get all the money that you need, and you may not be able to get the money when you need it. TABASFUNDING offers the advantage of a quick response. We have our own resources, and don’t need to go to others for approvals. We can get creative, and we can “read between the lines” better than banks. We can work with companies or entrepreneurs who may have a business blemish currently or in the past, but are in the process of overcoming it. We have more flexibility with the amounts that we advance. We may take risks that banks won’t. We try give you our counsel along with money, but of course how you manage your business is up to you. There are hundreds of non-bank merchant cash advance lenders, they do offer quick response but high interest rate and very fast repayment required. We give you adequate time to repay in years, not months.

Do you require collateral?

Our funding is not driven by collateral. We do take security in the most senior position available, we generally subordinate to bank financing, you are not required to have any particular percentage of collateral coverage.

What are your fees?

Typically, we charge no fees. We will ask that you pay any legal or other fees incurred to document your loan.

Are there prepayment penalties for your Venture Capital / Angel Funding?

Typically, borrowers may prepay their loans at any time without penalty.

Can you explain Success Interest to me?

Success Interest gives TABASFUNDING the opportunity to earn a bit more interest when a business is successful. Some of our deals work out and some don’t, so when we have a client who does well, we would like the opportunity to benefit. Success Interest is based on a formula, usually related to sales. It is paid after the end of the calendar year, when the businesses’ books are closed and the calculation may be made.

What do I need to provide to get started?

The basics are to complete our 5-minute application, or to give us a call. If it seems that we may be able to help, we will want to meet principals of the business in person, and see your business in action. We will ask for basic financial information about the business, including financial statements, and tax returns. We ask principals to provide current personal financial statements, and their most recent tax return. We will request permission to check your credit, ask for references, and request other information.

After I provide everything you ask, how long will an approval take, and if we agree to terms, how long will it take to receive funds?

Since we have our own funding sources, and are not brokers, we can make a decision within a week of receiving all information. When we come to agreement on terms, we then prepare a letter of understanding to be signed by both parties. Finally, we document the loan, which sometimes requires an attorney. A reasonable estimate of the time from supplying all information to receiving money is 3 weeks.

Does TABASFUNDING compensate loan brokers?

We welcome referrals from Loan Brokers. We protect Loan Brokers. We will not close a referred loan unless the Broker and Client come to a fee arrangement, which is usually paid at the loan closing.

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