Fundkite offering Sales-Based Financing in Texas

Sales-based financing in Texas is undergoing major changes. With the recent implementation of Texas law HB 700, providers of such transactions have had to spend valuable time and resources figuring out a way to offer financing under the new laws. With that said, small business funding provider Fundkite has announced that they are now offering sales-based financing transactions, also known as revenue-based financing or merchant cash advances, in Texas. Essentially, Fundkite has figured out a structure that will comply with the new Texas commercial financing laws. 

About Fundkite

Fundkite, founded in 2015, offers multiple financial solutions to the ongoing problems businesses face. They currently offer up to $2 million to SMBs with funding in as fast as 24 hours.

Its CEO, Alex Shvarts, has been featured on CNBC and on the Forbes Technology Council. In speaking with Mr. Shvarts, he says that their financing structure is proprietary, and he will only say they have created a payment system that complies with Texas law. 

Current situation

Complying with the new Texas commercial financing law HB 700 isn’t the easiest thing to do, as many providers have been learning. Some funders have been taking a step back from Texas to see how things will play out, and others have taken aggressive steps to either comply with the law or offer a different loan product. When offering a new term loan product that the provider has not offered before, there is a risk associated with that that some are willing to try, and others won't be.

What Fundkite is demonstrating, along with any others that offer or will offer sales-based transactions in Texas, is that they will not let the government deter them from continuing to offer financing solutions to small businesses that need it and will innovate when faced with challenges.