Clearfund Merchant Cash Advance Review 2023
Loan Amount
Factor Rate
Terms
Min Credit
Time to Fund
Company Profile
ClearFund is a leading provider of working capital to small businesses across the United States. Since its inception in 2019, the company has built a strong reputation for its commitment to transparency, speed, and flexibility. ClearFund treats its clients as partners, ensuring clear communication about everything from pricing and payback to early payoffs and fees. The company is headquartered at 99 Wall Street, New York, NY.
ClearFund's mission is to fuel the success of small businesses by providing fast, flexible, and reliable funding. The company has already supported more than 3,000 small businesses nationwide, demonstrating its commitment to helping businesses grow and succeed. ClearFund's approach to business is characterized by transparency at every step of the way, treating clients as partners rather than just merchants, and offering flexibility in terms of payment schedules and funding amounts.
Products & Services
ClearFund offers a financing arrangement known as a merchant cash advance. This product provides upfront capital to businesses in exchange for a fixed amount of their future revenue. The company does not base its approvals on credit score, recognizing that a credit score is just a number and not a true reflection of a business's potential.
To qualify for funding from ClearFund, a business must be U.S. based, have been in operation for a minimum of six months, and generate at least $5,000 in monthly sales. There is no minimum FICO score requirement. The application process is simple and quick, requiring only the owner's name and social security number, the business name and Tax ID or EIN, and the three most recent bank statements for the business bank account.
Pros and Cons
Pros:
1. ClearFund offers a simple and quick application process.
2. The company does not base its approvals on credit score.
3. ClearFund offers flexibility in terms of payment schedules and funding amounts.
4. The company provides funding to more than 500 industry segments, including higher-risk industries such as trucking and construction.
5. ClearFund allows for early payoff of the account in full without extra charges.
Cons:
1. ClearFund requires a business to have been in operation for a minimum of six months.
2. The company requires a minimum of $5,000 in monthly sales.
3. All applicants are subject to a background and credit check.
4. ClearFund does not service some industries.
5. The company's product may not be suitable for businesses seeking long-term financing solutions.
Ideal Customer
The ideal customer for ClearFund's services is a small business based in the U.S. that has been in operation for at least six months and generates a minimum of $5,000 in monthly sales. This business may not have a high credit score but has a steady stream of revenue and is looking for a flexible financing solution to fuel its growth and success. The business is also comfortable with the idea of repaying the advance through a fixed amount of its future revenue.
Required Documentation
To apply for funding from ClearFund, the following documentation is required:
- Owner’s name and social security number (SSN)
- Business name and Tax ID or EIN
- Three months of your most recent bank statements
Industries and Restrictions
ClearFund provides financing to more than 500 industry segments, including higher-risk industries such as trucking and construction. However, there are some industries that the company does not service. The specific industries that are not serviced by ClearFund are not listed on the website.
State of Operations
ClearFund services businesses that are based in the U.S. There is no specific mention of any state restrictions on the company's website.
Basic Qualifications
To qualify for funding from ClearFund, a business must meet the following criteria:
- Be a U.S. based business
- Have a minimum of 6 months in business
- Generate at least $5,000 in monthly sales
- No minimum FICO score is required
Collateral or Guarantees
The company's website does not provide specific information about the type of collateral or guarantees required for ClearFund's products. However, given that the company offers a merchant cash advance, which is typically an unsecured form of financing, it is likely that no specific collateral is required.
Alternatives
If ClearFund's services do not meet a business's needs, there are several alternative options available. Traditional banks offer a variety of loan products, though they often have stricter eligibility requirements. Online lenders and peer-to-peer lending platforms may offer more flexibility and faster funding times. Additionally, businesses may consider crowdfunding platforms or seeking investment from venture capitalists or angel investors. It's important for businesses to thoroughly research all available options and consider their specific needs and circumstances before choosing a financing solution.