Fast, Flexible, & Fair Business Funding | Libertas Funding

Who We Are

Libertas is a non-bank specialty finance company. We focus on providing cash flow-based funding to US based companies (industry agnostic but must be revenue and cash flow positive) with check sizes ranging from $500K up to $10M.

Our advance amounts are based on cash flow, usually 1.0-1.5 X EBITDA (minus existing debt expense) so our remittance payments are not too burdensome for the company. We have a quick and efficient underwriting and diligence process allowing us to fund in 3-5 business days.

Pricing ranges anywhere from 1.18 -1.30 factor rate (not interest because we are not a loan) over the duration of the facility, typically up to 10-12 months.

Attached to the funding will be steep prepayment discounts through the first half of the term allowing companies to pay off early at a significantly lower cost of capital.

Since this facility is not a loan, there is no collateral. It also does not have covenants like traditional loans. It is secured against the future revenue we are purchasing, and performance guaranteed but not personally guaranteed.

Who We Work With

Companies use capital like ours in hyper growth and time sensitive situations. Some recent examples include funding a specialty fruit business to provide resources to get product on the Costco shelf in a short time frame, providing a company funds so they could purchase a competitor’s equipment at a steep discount due to the liquidation of the competitor, and providing a company a small piece to complete an acquisition that was at risk of not happening if not completed within a certain time frame.

We do not put restrictions on use of funds, but companies look at our capital as “rent equity”, where if what they are doing with our funds creates revenue and margin in excess of our cost, it makes sense for them to move forward with Libertas.

For example, if we advance $1M at a factor rate of 1.20, the business will pay us back roughly $100,000 a month (for weekly and bi-weekly the amount will be weighted.) We can provide a flexible payment schedule to accommodate seasonality if needed. Since we are not a loan, we don’t amortize or have interest only payments.

These payments are taken out of the company's operating bank account via ACH weekly, bi-weekly or monthly depending on the business. The factor rate is based on the health of the company and the risk we are taking. Our underwriters would want to see at least a few hundred thousand coming into the company bank accounts so that they could still run and operate the business and pay us back. We don’t want the payments to be burdensome to the company so that income/our debt repayment ratio should be somewhere in the 20ish% range.

Requirements

• Most recent tax return (if 2022, include 2023 extension)

• YTD financials , as well as any relevant future projections

• Last 12 months of bank statements for business operating accounts

• AR/AP aging, if applicable

• Signed Application (attached)

• Existing Lender Agreement (to determine ability to have a subordination/ intercreditor agreement in which we will be subordinate to the senior lender)

Client Success Stories

“Because of our relationship with [Libertas] we’ve been able to take on bigger projects. We’ve been working with [the Libertas team] for about 5 years now, and it’s just been a perfect relationship for us. Libertas is our de facto business partner and we’re fortunate to have [them] in our corner.” Commercial Construction CEO

“[The Libertas] team is by far the most professional and diligent, they ask the best questions, and have been the most consistent about maintaining long-term relationships.” Software & Tech CEO

“Libertas was very quick to understand what was being presented to them, they performed efficiently and decisively, and allowed the transaction to get done very smoothly.” Oil & Petroleum CEO