Finance

Identifying the right financing for you can be complex and overwhelming.  You can now get access to finance to purchase an asset via Flippa. Our partners Yardline Capital and Guidant Financial can provide you with the necessary funds to buy and grow the business of your dreams!

Yardline Capital

Who is Yardline Capital?

Yardline Capital (Yardline) provides acquisition financing to buyers of e-commerce assets with a sale price exceeding USD$25,000. Finance is unsecured and repayments are made from the target’s store revenue. This can be done directly through the Flippa platform.

Yardline also provides flexible non-dilutive growth capital to e-commerce sellers. Up to USD$1 million is available and it can be provided in under 24 hours. This may be used to expand market reach, purchase inventory, scale up advertising, and grow. Repayments are made automatically from store revenue. Click here to learn more about seller growth capital and find out if your e-commerce business may be eligible. 

I’m a buyer. How do I get Yardline to fund my purchase?

For a buyer to get acquisition finance from Yardline, the asset they are looking to buy must first be pre-qualified* by Yardline. Yardline assesses each e-commerce business which lists for sale on Flippa which is asking over USD$25,000 and automatically pre-qualifies it. Not all assets will be pre-qualified.

*For the avoidance of doubt, a pre-qualification from Yardline is only an estimate of what the asset may be qualified to receive an advance against only and IS NOT a pre-approval. Flippa and Yardline do not make any representations about the eligibility of the asset and the ultimate ability of a buyer to obtain acquisition funding to acquire it.

How do I know if an asset is pre-qualified?

An asset which has been pre-qualified by Yardline will show the badge below. It can be found on the right-hand side of the listing page, underneath the watch button.

Yardline

How does a buyer obtain acquisition finance for a pre-qualified asset?

To get acquisition finance, a buyer must first place a bid or make an offer on the listing and specify that their bid/offer is subject to finance. A check box with the following text becomes available.

“Yes, I am interested in obtaining acquisition finance to fund this purchase.”

From there, the seller will be notified that the buyer’s offer or bid is subject to finance. If that offer or bid is accepted by the seller and, in the case of the bid, the bid meets or exceeds the reserve price by the end of the auction period, the sale will close and both parties will be invited to complete formal acquisition financing applications. Links to respective applications will be provided via email on closure of the sale. The buyer will be invited to complete Yardline’s buyer application while the seller will be directed to the seller application where their top-line monthly revenue can be verified. 

If both applications are accepted by Yardline, the underwriting process can begin. If one or both applications are declined, the buyer and seller may still proceed with the sale however acquisition funding will not be provided by Yardline.

How does Yardline pre-qualify an asset?

Yardline uses the top-line monthly revenue of the business to generate a pre-qualification figure. Please note that the pre-qualification amount is entirely dependent on the accuracy and completeness of data entered by the seller on the Flippa listing page. It is therefore very important that a seller updates their listing data each month and throughout the sales cycle.

What does the seller application involve?

Yardline’s seller application takes just a few minutes. Preview it here. To begin, a seller will be prompted to connect their sales channels/platforms and social media accounts. Connections available include Amazon, Shopify, eBay, Etsy, Walmart, Instagram, Facebook and more. Some can be connected automatically through a public API for real-time submission of data. Others are done manually.

From there, a sellers must input their personal information, including their social security number (SSN) and business information, including a Tax ID. With that information, Yardline will generate a pre-qualification amount which may, due to accuracy and reliability of original data, be higher or lower than the figure displayed on the Flippa listing page.

The seller will then be invited to proceed to a formal application where Yardline will review data from their marketplace accounts and other supporting documentation in closer detail. To substantiate revenue and expense claims, a seller will be asked to connect to Plaid, which links to the seller’s business bank account, or upload their last 3 months’ bank statements. Finally, the seller will be required to provide a credit check authorization. Yardline will be in touch within 24 hours with the outcome of your application.

What does the buyer application involve?

The buyer application is quicker than the seller application. The buyer will need to input personal details, provide a credit check authorisation, connect to Plaid or upload their last 3 month’s bank statements.

Applications are successful. What’s next?

Yardline will contact both buyer and seller individually with the outcome of their applications as soon as possible. They will receive a copy of the sale contract and issue the funds as and when required.

Guidant Financial

Who is Guidant Financial?

Guidant Financial provides a number of financing options to small business owners including but not limited to 401(k) business financing, SBA business loans, unsecured loans.

What is 401(k) business financing?

401(k) business financing lets new and existing business owners use their retirement funds to start or buy a business, without incurring tax penalties or taking a loan.

With 401(k) business financing, business owners can use retirement funds as business capital without incurring early withdrawal or tax penalties. As it is not a loan, there are no interest payments involved, which means a quicker path to profitability and a higher chance of business success.

Eligibility requirements

To qualify for 401(k) assistance you must require a minimum of $50k in funding. For an SBA loan, you must have a credit score rating of 690 or above.

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