Contracts
Funding agreements are short but dense. Six clauses account for nearly everything that surprises people later.
✓ Checking what you qualify for does not affect your credit score.
| Clause | What it commits you to |
|---|---|
| Total repayment | Every dollar you return — check this figure first |
| Payment frequency and amount | Daily, weekly or monthly, and what it is calculated on |
| First payment date | When money actually starts leaving your account |
| Personal guarantee | Personal liability if the business cannot pay |
| UCC filing | A public claim against business assets |
| Reconciliation | Whether payments adjust if revenue drops — and how you request it |
On revenue-based products, a reconciliation clause is what lets the payment adjust when your sales fall. Some agreements include it, some do not, and some include it but require you to request it in writing within a set window.
If your revenue is seasonal, this clause matters more than the headline cost. Find it before you sign and know exactly how to invoke it.
Ask for the total repayment in dollars, the first payment date and the reconciliation terms in writing. Any funder unwilling to state those plainly is telling you something. Definitions are in the glossary.
It allows the payment to adjust if revenue falls. Check whether your agreement has one and how to request it.
It appears in some agreements and is more serious than a personal guarantee. Read it carefully before signing.
Some agreements restrict it. Check the stacking language before taking a second position.
The total repayment in dollars and the date the first payment leaves your account.
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