How Our Model Works
It All Starts With Underwriting
Capital Source 2000 uses a financial matrix for our underwriting which evaluates clients with an emphasis based on cash flow rather than traditional credit metrics.
We investigate numerous sources in addition to credit scores to screen applicants including:
- Site Inspections
- MCA Industry Databases
- Background Checks
We complete the underwriting process to reach a decision in 48 hours.
Risk Mitigation Through Industry Diversification
Capital Source 2000 Advantages
Once an MCA is approved and funded it begins to generate cash flow the next day.
- Our MCA’s range in size from $5,000 to $150,000 and average funding size $25,101
- Funding terms are typically given a for a 66 to 132 business day period or 3 to 6 months based on 22 business days per month.
- Client payments are collected via ACH debit directly from client bank accounts.
- MCA payback is generally based on an average factoring rate of 1.40
Traditional small business lending has decreased dramatically since the collapse of the U.S. banking industry in 2008.
- The number of small business loans peaked at 14 billion in 2007 and declined to less than 5 billion in 2010.
- While the TARP program sanctioned more than $30 billion to banks to provide small business loans, however, only about $4 billion was actually loaned.
- A recent survey conducted by Pepperdine University revealed that 67% of those who applied for a traditional business loan were unsuccessful.
Why do billions of dollars in Small Business loan applications go unfunded each year?
- Many banks have legacy portfolios of non-performing loans and higher reserve requirements making them reluctant to lend money in this category.
- Additionally, traditional lending institutions have employed stricter underwriting guidelines further limiting the amount of small business funding.
Our Client Portal
Capital Source 2000, takes full advantage of our copyrighted Capital Control Center along with the web based Admin Portal. The Capital Source 2000 portal will automatically update using sophisticated algorithms from our accounting data. This allows us and our clients to effortlessly stay informed. Our Capital Control Center allows Capital Source 2000 to distinguish itself in the marketplace by offering multiple features. With this capability, we can monitor our client’s payments along with their set schedule at the click of a button. The Capital Control Center, also allows clients to monitor and build a combined point total through good payment history. Once our clients build a certain level of points they can redeem them with different gifts available on the portal. The gifts include iPads, laptops and a number of other devices.