- When is CircleUp Credit Advisors open for business and able to make loans?
CircleUp Credit Advisors is open for business every business day except the following: New Years Day, Martin Luther King Jr. Day, Presidents' Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving, the day after Thanksgiving, Christmas Eve, Christmas Day, and New Years Eve. Please be advised that these dates may be changed from time to time without notice.
- Why should I work with CircleUp?
CircleUp focuses exclusively on the consumer product industry. We have been in this industry for many years and have helped hundreds of companies with their capital needs, which means:
- We understand the nuances of your product and sales cycles, and thus have developed credit products that are tailored to address the unique needs of early-stage consumer product companies.
- We move faster than traditional lenders and offer the flexibility of a loan structure that grows with you as you scale.
- What information does CircleUp Credit Advisors require?
Typically we ask for a few reports from your accounting software and bank statement history.
- Isn't CircleUp just for equity capital?
CircleUp's mission is to help entrepreneurs thrive by giving them the capital and resources they need. Depending on the needs of the business, we offer both equity capital through the CircleUp Funds and credit financing through CircleUp Credit Advisors.
- Who is eligible to get a line of credit from CircleUp Credit Advisors?
We work with US-based consumer product companies that sell through wholesale channels or direct-to-consumer via e-commerce.
- Can I work with CircleUp Credit Advisors and raise equity simultaneously?
Absolutely. Our credit product can be used to supplement a larger equity raise to provide your company with working capital. The two processes can serve as great complements to one another to fuel your growth.
- What industries does CircleUp Credit Advisors work with?
CircleUp Credit Advisors focuses exclusively on the consumer product industry, covering sectors including Food & Beverage, Personal Care, Apparel, Household Products, Electronics, Pets, Infants, and more.
Asset-based Lending (ABL)
- How do you determine how much my company can borrow?
When determining how much we can lend to you, we take a number of factors into consideration. For e-commerce companies that sell direct-to-consumer (DTC), we take your historical cash flow / sales revenue into account. For companies that sell wholesale to retailers and/or distributors, we take your purchase orders (POs), accounts receivable (AR), and/or inventory into account.
- What types of loans does CircleUp offer?
CircleUp Credit Advisors offers revolving lines of credit that scale as you grow. We offer revolving lines of credit backed by Accounts Receivable (AR), Purchase Orders (POs), and Inventory. We also offer cash-flow loans that are helpful for direct-to-consumer (DTC) businesses and/or small companies growing rapidly.
- Is CircleUp a factoring company?
No, CircleUp Credit Advisors is not a factoring company because we do not purchase your accounts receivable (invoices). Given our strong familiarity with the consumer goods industry, we know how important it is for early-stage companies to establish and maintain strong relationships with retailers and distributors, and therefore we do not interfere with those relationships.
- I’m not sure whether I should raise equity or take a working capital loan. Can you advise me?
Absolutely. CircleUp has helped hundreds of companies obtain both credit and equity financing. We are excited to draw upon our experience to help you decide which financing solution is best for you given your unique circumstances.
- What is an asset-based revolving line of credit?
It is a lending product that is secured by the company’s assets, including accounts receivable (AR), purchase orders (POs), and inventory. As the size of your assets increase, you can borrow more money to fund your working capital purchases. As the line of credit is periodically paid down, we regularly provide additional credit line extensions to you (hence, the revolving nature of the product).
- How can I speak to someone about whether or not I’m a good fit for CircleUp Credit Advisors?
- How long does the application process take?
After we receive the necessary documents from you, we can underwrite your application and wire funds for the loan to you in a couple business days.
- How much can I borrow?
We offer lines of credit up to $3 million.
- Does CircleUp make direct equity investments?
CircleUp Growth Partners is CircleUp's fund currently making direct equity investments into high growth, early stage consumer companies. To learn more, please visit our fund page.