How it works
A funding partner buys a share of your future sales and pays you a lump sum. You repay a fixed total, the advance times a factor rate, set when you sign.
Who does what
We are a broker. We prepare your file and explain the offer. The funding partner decides and funds. You decide whether to sign.
A complete file holds a short application, 3 to 6 months of business bank statements, owner photo ID, a void cheque or direct deposit form, your business number or registration, how you'll use the funds and details of any current advances.
Please don't email bank statements or ID. If your request moves forward, we'll give you a secure way to share them.
You don't need the documents to start. The first step is a few questions.
| Task | Growpath Capital | Funding partner |
|---|---|---|
| Checks your fit | YesA first check with you | YesAgainst its own rules |
| Collects your file | YesSecurely, with you | NoIt reviews the file |
| Explains the offer in dollars | Yes | NoIts offer sets the terms |
| Underwrites and makes the offer | No | Yes |
| Signs, funds and collects payments | No | Yes |
Growpath Capital is a funding broker, not a lender. We help businesses compare funding partners, and the funding partner decides whether to fund and on what terms. Funding partners pay us a commission. You pay us no broker fee, but the funding itself has a cost, which we show in dollars before you decide.
From question to funding
Five steps. The first asks for no documents, and you decide before anything is signed.
You
Answer a few questions
No documents yet. We ask about your business and what you need.
Growpath Capital
We go through it with you
We check your fit and what you already pay. If a bank is better, we say so. Then we collect a complete file, shared securely.
Funding partner
A funding partner reviews it
It looks at deposits, bounced payments, negative balance days, existing advances and your industry. Credit is one factor.
You and us
You get an offer and decide
If a partner makes one, we explain it in dollars, trade-offs included. Not every file gets an offer. There is no pressure.
Funding partner
Funds are sent
Once you sign, funding often follows within 24 to 72 hours of a complete file. It depends on the partner and is never guaranteed.
Before you sign
Stacking
A second or third advance adds another daily payment, taken from the same sales. Example: $300, $250 and $200 a day against $60,000 in monthly sales.
- $300 + $250 + $200 = $750 a day
- $750 × 21 business days = $15,750 a month
- $15,750 ÷ $60,000 in monthly sales = about 26%
26%
of every sales dollar is gone before rent, stock or payroll.
Where each sales dollar goes
- Advance payments (gold):
- about 26%
- Left for the business:
- about 74%
We don't push another advance on a business that is already stretched.
Assumes 21 business days a month. Illustrative only. Real offers, fees and payment terms vary by funding partner.
Cash-flow pressure
Fixed payments continue on slow days. Check your slowest week and ask whether you could make every payment. A $344 payment on a $1,200 day is about 29% of that day's sales.
The personal guarantee
The owner may be personally responsible if the business cannot pay. Read that part of the agreement carefully, and ask us about it before you sign.
Cost versus speed
An advance usually costs more than bank financing, and the cost is fixed when you sign. Use one when getting the money quickly is worth the difference.
Is an advance the right tool?
A bank usually costs less if you qualify and can wait. If the bank can do it in time, take the bank.
| Feature | Merchant cash advance | Term loan | Line of credit |
|---|---|---|---|
| How the cost is shown | A factor rate. The total payback is set in dollars when you sign. | An annual interest rate, plus any fees. | Interest on what you draw, plus any fees. |
| How you repay | A share of daily card sales, or a fixed daily or weekly payment. | Fixed payments, usually monthly. | Payments on what you have drawn, usually monthly. |
| Typical speed | Often 24 to 72 hours after a complete file. | Typically 1 to 6 weeks. | Typically 1 to 4 weeks. |
| Best for | Speed matters or revenue is uneven. | A planned purchase you can wait to fund. | Ongoing, changing cash needs. |
Typical, not universal. Real terms vary by provider and by business.
See the cost in dollars
Answer a few questions. We'll show you what an advance would cost, and you decide.
Approval is never guaranteed. A funding partner makes the final decision.