Helpful Information for Entreprenuers
WHAT HAPPENS IF I DO NOT RAISE MY DESIRED AMOUNT?
There is nothing more important to us than helping you raise your desired amount. Your success is our success and to be quite honest, we can't be successful unless you are successful in raising the funds you think are necessary to help your business thrive. That being said, any funds you raise will be issued to you and we will continue to help you until you reach your desired funding goal. This is a long-term partnership.
HOW DO YOU DETERMINE MY INTEREST RATE?
We analyze financial and qualitative information to understand a business’s capacity to repay its debts. The information we take into account, includes, but is not limited to: the measure of cash flow to service current debt (aka Debt Service Coverage Ratio); how aggressive, or risky, a company is with financing growth (aka Debt/Equity Ratio); ability of its short-term assets to cover short-term debt (aka Working Capital Ratio); financial trends; customer and vendor reviews; management tenure; competitive landscape; etc. We ask a lot of questions to understand the business model, its evolution, and its future intentions.
HOW LONG DOES THIS PROCESS TAKE?
If you submit all the required information we can have you ready to raise funds within 7 calendar days.
AM I GIVING UP OWNERSHIP OF MY BUSINESS?
No. You pay principal + interest monthly. You retain 100% ownership of your business.
HOW MUCH CAN I RAISE?
You can raise between $100,000 - $1,000,000.
We can do campaigns greater than $1 Million tbut it will require additional due diligence.
Helpful Information for Investors
CAN ANYONE INVEST? OR DO YOU HAVE TO BE ACCREDITED?
Anyone with a bank account, $10, and the desire to, can invest. You do NOT have to be accredited. There are investment limits worth noting which are based on an individual’s annual income or net worth; specifically:
If an investor’s annual income or net worth is less than $107,00: the investor’s total investment limit is the greater of $2,200 or 5% of the lesser of their annual income or net worth.
If an investor’s annual income or net worth is $107,000 or more: then that investor’s total investment limit is 10% of the lesser of their annual income or net worth.
Either way, the total amount that an investor may invest per year cannot exceed $107,000.
CAN I LOSE MY INVESTMENT?
Yes. The simple truth is that there is risk involved in making any type of investment. We urge you to do your due diligence and ask questions prior to make an investment. We do not advise you to invest any money that you cannot afford to lose.
HOW MUCH DOES IT COST TO INVEST?
$0. Absolutely nothing... zero... zilch... nada. We do not charge any fees to invest in one of the companies listed on our platform.
I WOULD LIKE TO INVEST IN A COMPANY NOT CURRENTLY LISTED ON YOUR SITE. CAN YOU HELP ME INVEST IN THAT COMPANY?
Probably. Reach out to us with the company contact info and we'll do our due dilegnece to see if they are the right fit for our platform.
WHEN WILL I RECEIVE MY 1ST PAYMENT AFTER MY INVESTMENT IS MADE?
Your 1st interest + principal payment will be made on the 1st of the following month provided 30 days have past.
For example, if you invest on March 20th, your 1st interest +principal payment will be made on May 1st.
You can either reinvest the funds, or withdraw to your bank account.
CAN I CANCEL MY INVESTMENT ONCE IT HAS BEEN MADE?
Ultimately we leave this question to be negotiated between you and the business you have invested in. That being said, we trust each business to do the right thing given the circumstances. If there is a need for RawFunds to intervene, we will.
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