Many business owners who seek financing struggle to qualify for traditional business credit cards or business loans. Fortunately, many alternative funding options exist, including the Revenued Business Card and Flex Line.
Revenued provides both funding products in one convenient bundle. The business card allows businesses to make essential purchases, while the Revenued Flex Line provides a line of credit based on the business card credit limit.
However, it differs from unsecured business credit card options in that the business doesn’t carry a balance, and repayment comes from a percentage of future sales like a merchant cash advance. In addition, the card uses a flat fee called a factor rate instead of a traditional APR.
This review explores what Revenued is and how it works, including the pros, cons, and how to apply, to help you decide if it’s right for your business needs. Specifically, we’ll answer these questions and more:
Revenued is a company that helps businesses with funding. It offers a revenue-based business card, which works like a merchant cash advance. Businesses can use it to access funds based on their future revenue.
The process is straightforward. First, a business applies for the Revenued card online. Next, it provides information about its business revenue and financial history. After approval, it receives the card and can use it immediately.
Instead of applying for loans, businesses can use this card for quick access to funds. When a business earns money, it pays back the amount borrowed, making payments easier to manage.
Revenued also considers how much money a business makes each month. If a business has higher revenue, it may qualify for more funds. This gives businesses the chance to grow without worrying about strict loan terms.
The company was founded in 2017 and is based in Jersey City, NJ.
Revenued offers two funding products combined. While they function similarly to a business credit card and line of credit in some ways, it’s important to note that these are not traditional financing products.
Revenued’s service is a purchase of your business’s future receivables. When you use the products, the repayment comes directly from a fixed percentage of your future sales.
The Revenued Business Card allows you to make essential business purchases conveniently from a prepaid business card. Repayment comes directly from a percentage of your future sales.
The Flex Line extends the card’s credit limit to function as a line of credit. This allows you to draw cash from the credit limit rather than just making purchases.
Revenued credit limits are based on a business’s sales history and fluctuate up or down depending on the revenue generated. As the business makes more sales and revenue increases, the spending limit will also rise, allowing for greater purchasing power. Conversely, if sales decrease, the credit limit may be adjusted downward to reflect the change in revenue.
Factor rates with Revenued work by determining the total amount a business will repay on top of the borrowed principal. This rate is typically expressed as a decimal figure (e.g., 1.2), which is then multiplied by the borrowed amount to calculate the total repayment amount.
For example, if a business borrows $10,000 at a factor rate of 1.2, the total repayment amount would be $12,000 ($10,000 x 1.2).
Factor rates are easy to calculate but often more expensive than APRs, depending on the repayment term. In addition, you cannot avoid the financing charge like you could with the grace period on a business credit card.
The repayment terms for the Revenued Business Card typically range from 4 to 18 months. This flexibility allows business owners to choose a repayment schedule that aligns with their cash flow and financial needs. Additionally, the length of the repayment term may vary based on the amount borrowed and the borrower’s creditworthiness.
The holdback rate for the Revenued Business Card and Flex Line refers to the percentage of your business’s revenue that goes to repayment. The repayment period can be daily, weekly, monthly, quarterly, and or annually.
For example, suppose you have a holdback rate of 20% with a daily repayment schedule and make a business charge of $5,000. That means 20% of your daily revenue goes towards Revenued until the principal and factor rate are repaid in full.
One of the primary benefits of Revenued is that it makes business funding available to small business owners with less-than-perfect credit. This means you can potentially access funding even with low personal or business credit scores. However, some reviews suggest you’ll still need a decent credit score to qualify.
Since the company bases the credit limit on sales history and repayment comes directly from sales, Revenued focuses more on sales than credit history. That means you can have a low credit score, but should have strong sales to qualify.
Generally, the minimum qualifications are:
You must also have a business bank account, as the company evaluates business bank statements during underwriting. Repayment comes directly from your business bank account.
The product is designed for borrowers who can’t qualify for a traditional credit card or low-interest business loan. However, these products are often less expensive than the Revenued Business Card, making them better options if you do qualify.
While the repayment structure is similar to merchant cash advances, the key difference is that a merchant cash advance provides a single lump sum payment. Your business must repay the total amount plus the financing charge from the factor rate.
With Revenued, you could potentially save money by only using the funds you need instead of receiving a lump sum. In this way, Revenued combines the convenience of a business line of credit or credit card with the simplicity of merchant cash advances, giving you more control over when and how you access the funds.
The factor rate applies as soon as you make a purchase or draw from the credit line. This means you cannot save money by paying it off early, as there is no grace period. Shorter repayment terms can significantly increase repayment amounts, potentially straining cash flow.
The company takes repayment as an automatic transfer from your business bank account based on projected sales. That means if actual sales are lower than the projected, there might not be enough money in your account to cover the payment, leading to it bouncing. Revenued charges a $35 low balance fee when this happens, so tracking transactions, payments, and revenue is essential to ensure you have money in your account to cover the automatic transaction.
The company’s website doesn’t provide any information on a business loan affiliate program. However, it lists partnership inquiries as an option on its contact form. ISOs and business loan brokers should contact Revenued directly to inquire about offering its services.
Revenued is built around being quick, convenient, and accessible. As such, it offers a streamlined application process. Here’s how to apply.
Start by filling out the application on the Revenued website. You’ll provide basic information about your business and yourself as the business owner. You could receive a determination within one hour. Revenued does not use a hard credit inquiry, so applying won’t affect your credit score.
Once you apply, you’ll get a dedicated account manager to assist you with completing the sign-up process. You’ll have to provide business bank statements and connect your business bank account.
Ensure you carefully review the terms and understand the factor rate, credit limit, and holdback rate. If you decide to move forward, you can activate your account and start using the card in as little as 24 hours.
After being approved and activating your Revenued card, you can use it immediately for business expenses. To use the card, swipe it at any merchant that accepts Visa cards or enter the card information for online purchases. Repayment occurs with automatic transfers from your business bank account, including paying finance charges.
The primary benefit of Revenued is that it offers a viable funding option for small businesses that can’t qualify for traditional business financing, such as unsecured credit cards or small business loans. There is no personal credit check, so bad credit borrowers can apply, and it won’t impact your credit score.
Another crucial benefit is that the application process is simple and streamlined. You could receive your response within an hour and access funding within 24 hours.
The card may offer cash-back rewards of up to 3%, but the amount varies. Aside from the financing charge, there are no other fees.
Revenued uses factor rates instead of an APR, which can lead to a significant cost for your business. There is no grace period or intro APR, so you cannot save money by paying off the amount early like you could with traditional business credit cards.
While you don’t need good credit to qualify, your business does need substantial revenue. You must average at least $10,000 in monthly sales. In addition, you cannot have more than three days with a negative balance in a month and must carry an average daily balance of at least $1,000.
Since the funding product is a transaction and not debt, Revenued doesn’t report payment activity to the credit bureaus. As a result, you cannot build business credit with this product.
Pros:
Cons:
Revenued is a legitimate business funding company that provides financial solutions to small businesses. Its products are designed to help companies grow and manage cash flow. Revenued’s products are backed by Sutton Bank, member FDIC.
Revenued has primarily positive reviews, with a 4.6 out of 5 rating on over 700 Trustpilot reviews and a 4.8 out of 5 on over 350 Google reviews. Positive reviews highlight the ease of the application process, quick approval times, and competitive rewards program.
Many users appreciate the flexibility in credit limits and the ability to earn cash back on their business expenses. Revenued’s customer service is also frequently praised for being responsive and helpful.
Negative reviews for Revenued often focus on issues such as high fees, poor customer service, and difficulty obtaining credit. Customers have expressed frustration with hidden fees and unclear terms, leading to unexpected charges.
Some have also reported challenges reaching customer support or receiving timely assistance with their accounts. Additionally, there are complaints about the stringent approval requirements, making it challenging for small businesses to access the funding they need.
Revenued can reject an application for several reasons, such as not meeting their revenue, credit, or time in business requirements. The denial letter should explain the reasons why and what you can do to improve your application in the future. If it doesn’t state the reasons why or if you need more information, contact Revenued directly.
Fortunately, there are many other lenders and alternative funding companies to consider. For starters, you can try obtaining a traditional business credit card, such as the Ink Business Unlimited Credit Card or Brex Card. It’s often easier to obtain business credit cards than other forms of financing. A secured credit card could also be an option for limited credit.
Another option to consider is pursuing a merchant cash advance. Like the Revenued Business Card, merchant cash advance approval is based on your sales history, making it more accessible for businesses with limited credit histories.
If a low credit score is holding you back, bad credit business loans are designed to help business owners with poor credit histories access the funding they need to grow their businesses. Due to the increased risk for lenders, these loans typically come with higher interest rates and stricter repayment terms.
However, they also offer convenient online applications with fast funding. Business owners should carefully consider their financial situation before taking out a bad credit business loan to ensure they can meet the repayment obligations.
There are also several small business loan options to consider, including:
Revenued is best suited for businesses with fair credit seeking fast funding. Its product is a modified version of a merchant cash advance that allows you to make business purchases using a payment card. You can also draw cash from the credit limit through the Flex Line.
Small business owners could potentially save money using Revenued over a standard merchant cash advance because you only pay the financing charge on the funds you use. However, it’s still an expensive way to access funding.
Businesses with more established credit histories would likely qualify for more beneficial financing options, like traditional business loans. In addition, a business credit card with revolving credit offers the chance to save interest by paying off balances during the grace period.
Based on the available information, we rate Revenued as a 3 out of 5. Its product is a viable solution for businesses in specific situations, but the costs and lack of other financing options are concerns.
Disclaimer: The Revenued Business Card and Flex Line trademark is owned by Revenued, and its use herein is for reference purposes only, and it does not indicate sponsorship or endorsement from Revenued.
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