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.

What are the pros and cons of TABASFUNDING versus banks or other financing? Back to top
Financing through your neighborhood bank is generally the least expensive way to go for money. The drawbacks are you may not be able to get all the money that you need, and you may not be able to get the money when you need it. Banks adhere to loan to value ratios which may limit availability. TABASFUNDING offers the advantage of a quick response. We have our own resources, and don’t need to go to others for approvals. We can get creative, and we can “read between the lines” better than banks. We can work with companies or entrepreneurs who may have a business blemish currently or in the past, but are in the process of overcoming it. We are generally more expensive than the bank because we take risks that banks won’t. Higher interest may be offset by having us available for counsel and for future funding.

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 Success Interest to me? Back to top
Success Interest gives TABASFUNDING the opportunity to earn a bit more interest. The philosophy is that we take greater risks, and if you do well in your business we would like the opportunity to benefit. Success Interest is based on a formula to which we mutually agree where we can earn a bit more interest, usually related to improved sales. It is paid after the end of the calendar year, when your books are closed and the calculation may be made.

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.