HOW RFG WORKS
When the time is right, RFG is ready.
- PRE-QUALIFY– (link to PRE-QUALIFY) your business or client here. (link to PRE-QUALIFY).
- INTRODUCTION CONFERENCE CALL– If your business or client Pre-Qualifies, we host an introduction conference call to gather more information (business history, meet business owner/management, discuss financials, refinance options and any working capital needs)
- TERM SHEET OR DECLINE– RFG will issue a term sheet for a proposed Merchant Cash Advance refinancing transaction or issue a transaction decline.
- FULL DUE DILIGENCE & UNDERWRITING PROCESS– Upon execution of a proposed term sheet for refinancing, RFG will require a small due diligence deposit commitment to perform on-site due diligence in order to: meet our potential borrower(s) in person, visit their business, verify underwriting materials, rule out fraud, perform extensive personal and business background checks and develop a working relationship.
- CLOSING DOCUMENTS– RFG will prepare closing documents (credit agreement, corporate and personal guarantees, collateral pledge, etc) for review and execution by the potential borrower.
- TRANSACTION CLOSING– Upon dual-execution off closing documents, your new monthly-payment loan/financing agreement will begin. RFG will pay off all Merchant Cash Advances and/or other high interest, short term small business debt directly with your creditors and deliver zero-balance letters. Daily and weekly Merchant Cash Advance ACH payments will stop. If your transaction includes working capital, you will receive it on closing day via wire/ACH.
- POST-CLOSING REQUIREMENTS– Monthly financial reporting is required. (P&L, balance sheet, AR & AP, bank statements)
HOW RFG WORKS
General Timeline for RFG Transactions
Pre-Qualification Requirments & General Refinancint Terms
Pre-Qualification Documents & Requirements
- RFG full application completed
- Last 2 years of corporate tax returns
- Last 2 years of personal tax returns
- Last 12 months of bank statements
- Current AR report
- Current AP report
- Current Debt Schedule (on
- application)
- Interim and previous year P&L
- Interim and previous year Balance Sheet
- Minimum balance of $150k+ on MCA advances
- Top Line annual revenue of $1.5mm+ is best
- Strong history of cash flows & positive EBITDA
General Refinancing Terms & Conditions
- Term loan with a balloon payment due every 12 months
(renewed or refinanced out at the end of term) - 24 to 36month amortized payment schedule
- 25% to 27.5% APR or 1.25x to 1.275x over 12 months
- Senior position UCC-1 lien filing across all assets
- Second position behind bank/SBA or factoring loans
- Monthly reporting of financials & bank statements
- Guarantees (corporate, personal & spousal)
- Payoff of all MCAs and/or high interest, short-term debt
- 60% to 90%+ reduction in monthly debt service
- One manageable monthly term loan payment
Contact
Get In Touch
RAMP FINANCIAL GROUP
Ramp Financial Group LLC (“RFG”) is a privately held alternative direct-lending investment fund that specializes in refinancing Merchant Cash Advances and other high interest short-term small business debt financing.