What is Corl?
The best analogy to what we've created is how the coral reefs influence their underwater ecosystems. We provide access to non-dilutive capital (coral reefs), providing shelter from sharks (VC's) and other predators for startups and small businesses (fish) in the digital economy (ocean). Our goal is to improve life for entrepreneurs regardless of race or genetic makeup, by eliminating bias in the underwriting process, providing fast decision and turn around times on funding and analysis/insights into your company's health and financial future.
What is Revenue Sharing?
Revenue sharing is an agreement where Corl provides $10k-$300k as an investment for a business to grow their revenue. In exchange, 1-10% of a business' monthly gross revenue is shared with Corl and the business keeps the remaining 90-99%. The business has the option to end the agreement at any time by paying Corl a Buyout Amount between 1-3x the initial investment.
How is Corl different?
Corl is different in a number of ways. Our application process is quick, it takes under 10 minutes to apply, and you get a fast decision in as little as 24 hours. Our financing process is reliant on data; meaning decisions are objective and our human biases won't negatively affect your ability to get capital (unlike our VC friends that allocated less than 3% of their funds to women-led businesses). Moreover, our financial investment is non-dilutive, has no term, no minimum payment amounts, no origination fees, we don't require board seats, nor personal guarantees in the event of default.
Would I qualify?
In order to qualify for financing, you business should have a:
- Minimum $10k in monthly revenue
- Minimum 6 months history of revenue
How are Revenue Sharing payments recorded?
While we recommend that you consult your accountant, we typically see businesses record our revenue sharing payments as an operating expense. This means businesses benefit from a lower EBITDA and tax expense for the year.
When does the agreement end?
The agreement can be ended at any time by the business by paying Corl the Buyout Amount. The Buyout Amount is determined when the agreement is made, and typically ranges between 1-3X the initial investment.
How much is the interest?
There is no interest. Corl provides an investment to the business to grow their revenue. If the business does not make revenue, there will be no revenue sharing payments. Our incentives are aligned to help you grow your revenue.
What do you do with my data? Is it safe?
We follow cybersecurity best practices and secure your data with bank-level encryption software. Corl has no admin or write access to your business data or accounts. We read your data and run it through our internal algorithms to determine your eligibility for financing and investment terms. We do not outsource your data to third-parties and will never sell your data.
How long does the process take?
The application process takes less than 10 minutes to complete. Upon completion, Corl will provide feedback within 24 hours. If pre-approved, there is a 1-2 week due diligence process where timing really depends on the availability and timeliness of information requested. Corl looks to close on approved deals and providing funding in 2-4 weeks after completed application.
If I am not currently profitable, do I still qualify?
Yes. Profitability and/or a path to profitability play a role in the due diligence process, but Corl will fund businesses that are not profitable.
Are there any restrictions around use of capital?
Yes. Corl will only finance revenue generating activities. We're looking for repeatable and scalable processes that have a history of yielding a growth in revenue. These activities can range from hiring employees, marketing or advertising spend, inventory purchases, or any use of capital that will lead to higher revenue. Corl will not finance the consolidation of debt, payoff existing debts, provide working capital, or compensate investors for investing in your awesome business.
What type of businesses or industries receive capital?
Corl is agnostic in terms of industry. However, Corl finances businesses that have the ability to scale quickly through technology, automation, or digital processes. Corl's product is designed for high-growth technology companies or businesses that generate the majority of their revenue online. While we mostly attract Software-as-a-Service and E-Commerce businesses, we will finance any business that considers themselves part of the Digital Economy.
Can I supplement an equity or venture raise with Revenue Sharing?
Yes. In fact, it's a smart decision. Revenue Sharing is a lower cost of capital than equity for most businesses. Corl can provide bridge financing between equity raises, or provide additional capital as part of your existing equity raise.
Can I receive follow-on financing?
Corl partners with businesses for the long-term. We're here to accelerate your growth for the entire life of your business, which we hope is forever. Corl will provide follow-on financing to all qualified businesses, so when you need more capital to grow, just give us a call.
Does it get any better than this?
No. No it does not.