Clearbanc model ?
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  1. #1
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    Clearbanc model ?

    Can anyone shed light on the Clearbanc pricing model? From what I've seen it looks like this...

    - 6.00% origination fee.
    - Merchant Cash Advance legal structure.
    - Nuance that instead of fee premium i.e. $1.35 of receivables for $1.00 a royalty of x% of gross revenue is granted.

    e.x. $100,000 advance over 6 months to a business that is projected to do $100k per month in sales with a 5% royalty rate and 21.67% collection rate.

    - Disbursement of $94k
    - Monthly gross collections of $21,667.00 ($16.67k in receivables and $5k in 'royalty')

    Is this correct???

  2. #2
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    i would like to know this too- you like bumps?

  3. #3
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    Quote Originally Posted by Lendvo View Post
    Can anyone shed light on the Clearbanc pricing model? From what I've seen it looks like this...

    - 6.00% origination fee.
    - Merchant Cash Advance legal structure.
    - Nuance that instead of fee premium i.e. $1.35 of receivables for $1.00 a royalty of x% of gross revenue is granted.

    e.x. $100,000 advance over 6 months to a business that is projected to do $100k per month in sales with a 5% royalty rate and 21.67% collection rate.

    - Disbursement of $94k
    - Monthly gross collections of $21,667.00 ($16.67k in receivables and $5k in 'royalty')

    Is this correct???
    Not sure the way you explained it. Reach out to Addie she's super helpful. addie@clearbanc.com

  4. #4
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    Can Some one please elaborate more on this model.

  5. #5
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    Quote Originally Posted by blashley View Post
    Can Some one please elaborate more on this model.
    It's a cash advance based on e-commerce data. You tell them it costs you $1,000 to acquire a customer that will generate $2,000. They ask for proof, as opposed to MCA funders looking at your revenue they look at your acquisition costs and your revenue generated from it. The rest is straight MCA. Regardless of what people say. It's not cheaper than an A lender in the MCA space, it's just that A lenders WON'T finance non existing or historical revenue. Whereas Clearbanc understands that if you pour fuel on a prove e-commerce/saas acquisition model, they can help create new revenue.

  6. #6
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    Clearbanc take brokers? I understand they are funding crazy offers fast

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