Short-Duration Business Credit

The business receives a lump sum and repays it through fixed periodic remittances, or a percentage of card receipts, over a term of up to twelve months. Repayment is collected by automated debit from the operating account or, in split and lockbox structures, from the payment processor before revenue reaches the business. The facility can sit in first position or behind existing funders, with the position reflected in the terms.

Exposure is sized from position in the capital stack, time in business, deposit consistency, existing funder debits and the share of revenue they consume. Criteria are set per facility by an underwriter and are not published, and no facility is offered on a rate card.

Cash-flow underwriting reads the last several months of operating statements for the things that predict repayment: deposit frequency and consistency, average daily balance, the frequency of overdrafts and returned items, existing funder debits and the share of revenue they already consume, and seasonality. A business with steady daily deposits and few negative days is a better credit than one with the same monthly total arriving in two lumps.

Statements are the starting point, not the evidence. With the obligor’s permission Wesvel connects read-only to the business’s bank accounts and to its payment processor, and underwrites from the live data those connections return rather than from documents the obligor supplies. Bank data gives every transaction, categorized, across every account the business holds, which removes the risk of an altered PDF and shows accounts the application did not mention. Processor data gives daily settlement volumes, chargeback and refund rates, average ticket and the mix of card and cash, which is the true revenue of a card-accepting business against the revenue its statements or tax returns report. Read together they show seasonality across a full cycle, the recurring debits of every other funder with a position on the same revenue, and whether deposits are customer payments or the owner’s own transfers. Where the facility is repaid from card receipts, the split is set at the processor so that Wesvel’s share is settled before the remainder reaches the business, and a lockbox performs the same role for businesses paid by invoice.

Deposit patterns and margins vary widely by industry, and some carry regulatory, collateral or cash-flow characteristics the structure does not fit. Industry exposure is capped at the portfolio level and reviewed per facility.

Longer duration and lower cost of funds on stronger files. Exposure to law firm receivables against case inventories and settlements. Credit card split and lockbox structures, where repayment is taken at the processor. Syndicated participations on larger facilities.