RetailCapital, a relatively new finance firm, is reinventing the financing options for small businesses in Metro Detroit.
Lending options for small businesses largely dried up in the wake of the Great Recession, leaving mom-and-pop companies with few, if any, options to replace broken equipment or fund expansions. RetailCapital is filling that gap by offering financing options (with an average advance of about $20,000) where the principal is paid back through a portion of that business' credit card receipts.
"We are essentially factoring future receivables for mom-and-pop businesses," says Erik Stamell, managing director of
RetailCapital.
The 2-year-old business has grown to 60 employees and an intern after hiring 40 new people over the last year. The firm closed 140 deals in the last month from not only Metro Detroit but also across the U.S. It expects to continue hiring as its business revenues climb.
"Our business has grown tremendously," Stamell says. "The industry has grown exponentially as well."
Source: Erik Stamell, managing director of RetailCapital
Writer: Jon Zemke
Read more about Metro Detroit's growing entrepreneurial ecosystem at SEMichiganStartup.com.
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