Frequently Asked Questions

What Are Your Terms? Back to top
The funding is generally structured as debt with a fixed interest rate, and an opportunity for us to earn some additional interest (“Success interest”) if mutually agreed upon financial goals are met or exceeded. Loan repayment may be over 3-7 years with interest only for a period of time, if warranted. Repayment is structured to fit your needs.

For what purposes may I obtain Venture Capital Funding? Back to top
Funding is available to support growth or for acquisition of existing businesses. Sorry, start-ups will not qualify.  Borrowers take best advantage of our funding when it allows entrepreneurs to leverage their dollars with our funds. Frequently borrowers’ and our funds serve as “down money” or “seed money” to help borrowers obtain bank or other funding to achieve business goals. Businesses on the cusp of a turnaround are ideal.  

Do you serve any particular size or type of Business? Back to top
We are open to any type of business, although not highly technical businesses. Our Venture Capital Funding generally serves businesses with annual sales of $½ million to $10 million.

What is the size of the funding that I could obtain from you? Back to top
You may apply for $100,000 to $750,000 or more.

Do you have credit requirements? Back to top
Yes, principals must have reasonable personal credit even if not extensive, and be willing to guarantee. Businesses must be current in their bank loans, and current in any taxes or current on any agreements to catch up on back taxes.

Do you have any Geographical funding requirements? Back to top
We provide funding for businesses located within a couple of hours of Philadelphia in Pennsylvania, New Jersey, and Delaware.

Is your Venture Capital Funding an alternative to bank financing? Back to top
No. Tabasfunding will be more expensive than bank financing, and not competitive with it. If your situation qualifies for bank financing, this will be your best alternative. Consider us when the bank says no, or when you need more than the bank will lend.

Do you require collateral? Back to top
Our funding is not driven by collateral. We do take security in the most senior position available, but it is generally subordinate to bank financing and you are not required to have any particular percentage of coverage.

What are your fees? Back to top
Typically we have no fees. We will ask that you prepay our lawyers’ fees to document the loan, in case the transaction does not go through. Typical legal fees are $1000-$5000.

Are there prepayment penalties for your Venture Capital Funding? Back to top
Typically borrowers may prepay their loans at any time without penalty.

Can you explain the “success interest” to me? Back to top
The funding that we provide carries more risk of loss for the lender than conventional bank financing. Some of the loans that we make don’t work out and we need to be able to earn enough on the ones that do to overcome that. When borrowers succeed, and exceed their goals, it is appropriate that we are able to earn a bit more interest. Typically this additional Interest is based on a formula on which we mutually agree, and paid after the end of each calendar year. 

What do I need to provide to get started? Back to top
The basics are to complete the 3 minute application, or to give us a call. If it seems that we may be able to help you we will want to meet you in person, and view the business in question. We ask for basic financial information about the business, including 3 years of financial statements, and tax returns. We ask principals to provide a current personal financial statement, and copy of the most recent tax return. We will request permission to check your credit, do criminal records check, and request other information and items.

After I provide everything you ask, how long will an approval take, and if we agree to terms, how long will it take to receive funds? Back to top
Since we have our own funding sources, and are not brokers, we can make a decision within a week. The other steps in the procedure are to come to agreement on terms, which generally takes up to another week. We then prepare a commitment letter for your agreement. Of course, not all applicants are approved, and you should not plan on funding being available unless we issue a commitment letter. Finally, we ask our attorneys to document the loan, which will probably take another week. A reasonable estimate of the time from supplying all information to receiving money is 3 weeks.