Warning about Working Capital Loan (LOC)
Spent 2 weeks dealing with Mercury trying to get what sounded like an awesome line of credit (LOC) that they call a working capital loan. Awesome rate (6% for 6 months), early repayment incentivized, quick disbursement, the works. They told me to expect to be able to borrow 15% of current revenue. We're profitable and growing extremely fast (easy to prove our growth).
The eventually came back with an offer of just 5% of last year's revenue -- which we'd take but not be happy with-- but with a wild caveat that is written nowhere on their site and was not mentioned in our meetings or emails. If we take that money, we can't take a single dollar from another source!! Even existing lines. Totally nuts. A fraction of what we need and it comes with an enormous restriction.
So now we'll do LOCs with traditional bank(s) and get creative. Can't imagine how any sane business owner out there would take the Mercury deal. Good rate, sure, but what a gargantuan limitation.