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Business Revenue Loans are becoming very popular due to its ease of obtaining and flexibility. They are administered by hedge funds, and becoming a larger and larger financial player in the business finance arena. They have essentially replaced banks for small businesses with annual revenue less than $5 million a year. Hedge fund loans can range from $5,000 to $500,000 on up, and are based on a business�s cash flow. They look at the total receipts of a company, and will typically lend anywhere between 8% to 20% of the gross revenue of the business.

The idea is not a new one. Business lending hedge funds have been around for years, but were only used by companies in industries considered unbankable back in the day. Now, with banks increasingly only catering to the middle market businesses, (gross revenues of $10 million and up) business lending hedge funds have become common place to most industries. As more and more business hedge funds are entering the market, interest rates are becoming increasingly more competitive.

The underwriting process is simple and fast. Underwriters review the bank statements for a stated period of time, (either 3, 6, or 12 months worth, determined by the hedge fund, industry, and amount of loan requested). Approval proposals take 48 hours, and funding times take 3 days. Financials are not needed for loan requests under $50,000. For loan amounts over $150,000, underwriting times make take upwards of 15 days.

Items needed for approval will vary per hedge fund, but generally:

� Company /Owner contact info;

� A short description of the company's business and industry and the planned use of funds;

� Gross Annual Revenue

� Time in business

� Three months business bank statements;

� Financials required for requests over $50,000.

Hedge fund loans are easier to qualify for than a traditional loan. Usually 95% of all small business will be able to find a hedge fund that will lend to them, but the interest rates and terms will vary. A business in a favored industry with less than $500,000 in gross receipts can expect to pay interest rates of 18% (or more). Companies with annual revenue of at least $1 million, and also in a favored industry, can expect to pay interest rates starting at 16%. For companies that have more than $2 million in revenue, rates start to equal those of bank loans starting at 12%. Non favored industries, or companies that have light cash flow, or cash flow issues, can expect to pay rates upwards of 30% - 45%.

It is important to remember, that even high priced financing often is what is needed to propel a company into greater profitability. Being able to fund a deal in as little as two business days is worth it if your business will become more profitable as a result. Greater profitability leads to less expensive capital. If you have a transaction that needs funding, and the margins earned produce more profitability than the cost of capital, the end result is a better , stronger company that will be able to qualify for a more cost effective round of financing in the future.

Hard to finance industries:

� We provide finance solutions to most industries.

� For in depth underwriting explanation, please see our Finance Handbook Part 1.

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JTB Associates LLC CPA is an Illinois based certified public accounting and business consulting firm. JTB Associates CPAs provides core accounting services, like payroll, and funding solutions, such as leasing, raising business capital, unsecured lines of credit, merchant loans, merchant advances, and vendor financing programs. Our services transcend accounting to building, raising, obtaining working and expansion capital for start up and established businesses. JTB is nationwide, local area is Illinois communities like Serving the Chicago metropolitan area Northbrook,Grayslake,Wheaton,Naperville,Skokie,Oak Brook,Springfield,West Chicago,Rolling Meadows,Oakbrook Terrace,Crystal Lake,Wilmette,Highland Park,Gurnee,Libertyville,Elgin,Elkgrove Village, Elmhurst . JTB Associates, LLC is a Certified Public Accounting Firm and Business Consulting Firm based in Chicago, Illinois.