Frequently Asked Question
Here are some questions we often get asked. Hopefully, this will answer a question or two. If you don't see your question, please get in touch through our Contact Us page.
Corl was founded in 2016 with the belief that businesses should have access to capital that won’t hinder their growth with high interest rates or equity dilution. Corl focuses on funding the digital economy with revenue-based financing and uses their Capital-as-a-Service (“CaaS”) platform to make fast and fair decisions. Our AI technology allows us to streamline the financing process and properly price risk by evaluating a business' operational and financial data in as little as 10 minutes. The result has led to over $35M in capital investments that are fast, fair, and flexible.
Corl (short for Coral) is a living breathing ecosystem made up of millions of organisms and algae. Individually, neither the organisms nor algae can grow or survive. But together, in the right conditions, they can grow, survive, and thrive for millions of years.
Revenue-based financing is an agreement where Corl provides $200,000 - $5,000,000 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. On a case-by-case basis we also consider fixed loan agreements. The best way to find out is to apply and our team will reach out to you discuss your options.
Corl is different in several ways. Our application process is quick, it takes under 10 minutes to apply, and you get a 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, doesn’t have origination fees, doesn’t require board seats, or personal guarantees in the event of default.
To qualify for financing, your business should have a:
- Minimum $50k in monthly revenue
- Minimum 6 months history of revenue
- Minimum $20k in monthly revenue
- Minimum 6 months history of revenue
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.
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.
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.
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.
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 due diligence process where timing depends on the availability and timeliness of information requested. Corl looks to close on approved deals and providing funding in an average of two weeks after completed application.
Yes. Profitability and/or a path to profitability play a role in the due diligence process, but Corl will fund businesses that are not currently profitable.
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 repayment of existing debt or compensate existing investors.
Corl is agnostic in terms of industry. However, Corl finances businesses that can scale through technology, automation, or digital processes. Corl's product is designed for high-growth technology companies or businesses that generate most of their revenue online. While we attract Software-as-a-Service and e-Commerce businesses, we can finance any business that is a part of the digital economy.
Yes. In fact, it's a smart decision. Revenue-based financing 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 current equity raise.
Corl partners with businesses for the long-term. We're here to accelerate your growth for the 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.
For all investor related questions, please sign-up to our Investment Portal for the most up to date information and FAQ.