Elevation Capital: 2023 Review
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Pros and cons of Elevation Capital
| Pros | Cons |
|---|---|
Low minimum credit scores Merchant cash advances may be eligible for funding within 24 hours Factor rates may start lower than other lenders | Doesn’t offer term loans or lines of credit Must be in business for at least six months with annual revenue of $150,000 May include origination fees |
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Elevation Capital review
Elevation Capital is an online lender that offers several types of small business financing, such as merchant cash advances, invoice factoring and accounts receivable financing and purchase order financing. The company describes itself as a working capital funder for businesses, with a specialty in offering various cash advance products.
Who is Elevation Capital for?
Elevation Capital may seem like a good option for some business owners, but might not be the best for everyone. This online lender may be better suited for:
- Business owners with poor credit
- Small business owners who have been in business for at least six months.
- Borrowers looking for cash advances. Although Elevation offers several types of financing products, they are all various flavors of cash advances.
Elevation Capital small business financing at a glance
| Product | Amount | Repayment term | Estimated factor rate | Fees |
|---|---|---|---|---|
| Merchant cash advance | $10,000 to $3,000,000 | 12-month avg. repayment | 1.12 to 1.24 | 0.00% to 1.00% origination fee |
| Invoice factoring and accounts receivable financing | $5,000 to $10,000,000 | 120-day avg. repayment | 1.12 to 1.24 | N/A |
| Purchase order financing | $100,000 to $10,000,000 | 6-month avg. repayment | 1.12 to 1.36 | 2.00% origination fee |
Merchant cash advance
A merchant cash advance offers a lump sum of cash to businesses that’s usually paid back as a percentage of daily credit card sales. Borrowing costs with MCAs are commonly expressed as a factor rate instead of a standard interest rate. To calculate your total borrowing cost, multiply the amount advanced by the factor rate. Elevation Capital allows you to borrow anywhere from $10,000 to $3,000,000 and if approved for an MCA, you may be able to receive funds within 24 hours.
Invoice factoring and accounts receivable financing
Invoice factoring a financing option when a business leverages their unpaid invoices to unlock cash, anywhere from 70% to 90% of the invoice amount. The business sells invoices to a factoring company for a cash advance and then the customer pays the factoring company directly. To qualify for Elevation Capital’s invoice factoring, your business must be able to meet a factoring minimum of $5,000 monthly. Like merchant cash advances, Elevation charges factor rates with its invoice factoring products, but there are no additional origination fees.
Purchase order financing
Purchase order financing is a cash advance that helps when a business has an influx in orders, but needs additional cash flow to help fulfill them. With Elevation Capital, you can receive purchase order financing from $100,000 and $10,000,000, though it does come with a 2.00% origination fee. Like its other financing products, purchase order financing charges a factor rate.
Elevation Capital borrower requirements
| Minimum annual revenue | $150,000 |
| Minimum time in business | 6 months |
| Minimum credit score |
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Elevation Capital only requires a business to be running for six months to qualify and accepts those with low credit scores. However, if you’re a newer business that has yet to generate a lot of revenue yet, you may want to look elsewhere to get a business loan.
Required documents
Each lender has specific requirements for business loans for a borrower to qualify. To apply for a business financing product with Elevation Capital, you’ll need to complete an online application to get started. Three months of consecutive business bank statements are also required when you apply to show you make the required monthly amount of $12,500.
Alternatives to Elevation Capital
Elevation Capital offers several products to help with funding without requiring excellent credit scores, but it’s not the only one with these options. Here are two other lenders that provide financial solutions that could be better suited for your needs.
| Elevation Capital | Credibly | Uplyft Capital | |
|---|---|---|---|
| Minimum credit score |
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| Merchant cash advance: 500 |
| Funding products offered |
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| Merchant cash advance |
| Time to funding |
| As soon as the same business day (depending on the product) | 1 to 2 business days |
| Starting factor rates |
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| Starting at 1.24 |
| Maximum funding amounts | $10,000,000 | Up to $400,000 for working capital, merchant advances and invoice factoring | $1,000,000 |
| Minimum annual revenue | $150,000 |
| $144,000 |
Elevation Capital vs. Credibly
Credibly also offers merchant cash advances and invoicing factoring like Elevation Capital, but doesn’t offer purchase order financing. Instead, it offers working capital loans, lines of credit and equipment financing. The starting factor rates for Credibly are slightly lower, but its maximum funding amounts are also much lower than those of other comparable products. Both lenders require a six-month time in business for all borrowers, though if you want to pursue an SBA loan through one of Credibly’s partners, you’ll need to be in operation for at least 24 months.
Elevation Capital vs. Uplyft Capital
Uplyft Capital only offers merchant cash advances, but with factor rate rates starting at 1.24, Elevation Capital may be the cheaper option. And though the time to funding is relatively similar between the two, where Uplyft stands apart is its more lenient eligibility criteria. Borrowers with low credit can qualify for both lenders, but Uplyft Capital accepts borrowers with credit scores as low as 500. Plus, with Uplyft, the minimum time in business is only three months, half the time Elevation Capital requires.