“At FAVO Capital, we ensure that our innovation process aligns with our mission to support small businesses by emphasizing advanced technology, data analytics, and exceptional customer service.”

In the ever-evolving business world, finding the right financial backing can be the game-changer that propels growth and opens doors to new opportunities. This is where FAVO Capital comes in, serving as a catalyst for small and mid-sized businesses with their bespoke, short-term funding solutions. Dedicated to empowering entrepreneurs and business owners, FAVO Capital brings together a team of seasoned professionals with diverse expertise in business, finance, and entrepreneurship.

At FAVO Capital, the focus is on understanding the unique challenges businesses face. Their experienced team is committed to providing flexible funding options tailored to each client’s specific needs. Their mission is both clear and impactful: to deliver swift, customized funding solutions that drive your business toward success.

Shaun Quin, President of FAVO Capital, spoke exclusively with Business Honor, offering a compelling look into how his company transforms the financial journey for its clients.

Here are the key insights from the interview:

Q. Every great venture starts with a spark of inspiration. Can you share the story behind the creation of FAVO Capital? What motivated you to establish a company focused on providing financial lifelines to small and mid-sized businesses?

FAVO Capital was founded to fill the financing gap that small and mid-sized businesses often face, particularly in dynamic and emerging markets. Our vision is to empower small and medium businesses.

We view small and new businesses as crucial to America’s future. With 33.1 million registered companies employing over 60% of the workforce and contributing 44% of the U.S. GDP, small businesses are a major engine for financial recovery, job creation, innovation, and local economies. They form the backbone of resilient and sustainable communities.

However, many small and emerging businesses face significant obstacles in securing necessary funding quickly on time. The right financial backing can be transformative, turning dreams into reality. The COVID-19 pandemic highlighted the limitations of government aid, such as Paycheck Protection Program (PPP) Loans, and presented an opportunity for FAVO Capital to offer accessible, innovative financial solutions. We provide tailored funding that addresses unique needs of small and medium-sized entrepreneurs, contributing to their success and market sustainability.

Recognizing the need for additional working capital to aid economic recovery, we identified a gap in the private credit sector and acted on it. This strategic move has led to substantial growth for our business, drawing interest from large institutional investors. As a public company, we stand out from competitors and play a leading role in the industry’s growth.

Q. FAVO Capital offers a variety of funding options tailored to different business needs. Could you walk us through the main products and services you provide, and how each one addresses the specific challenges faced by small and mid-sized businesses?

 We’re not just funders; we’re partners in success. We believe in aligning our interests with our clients’, working collaboratively to mitigate risks and unlock growth potential. Instead of traditional loans, we invest in our clients’ future revenue, sharing both risk and reward. This innovative model fosters a truly collaborative relationship, demonstrating our commitment to their success.

Beyond our core investment model, we offer a variety of funding options, either directly or through our extensive network of partners, ensuring tailored solutions for every client’s needs. Our experienced team provides personalized funding options for new, small, and medium-sized businesses, with a focus on quick, efficient, and flexible solutions.

Funding Options:

1. Merchant Cash Advances: We provide upfront capital in exchange for a percentage of daily revenue, repaid until the advance plus fees are fully settled. This fast, simple option features high approval rates, short repayment structures, and same-day funding.

2. Invoice Factoring: We purchase outstanding invoices, allowing businesses to access cash immediately instead of waiting for customer payments. This quick and easy approval process ensures funds are available by the next day.

3. Line of Credit: Ideal for short-term needs like inventory or repairs, a business line of credit offers flexible access to funds up to a limit. Secured lines often have lower interest rates compared to business credit cards and more flexible repayment terms.

4. Equipment Financing: We offer up to 100% of equipment costs with a fast, simple application process. Equipment loans are self-collateralizing, making them easy to secure, with quick approval and next-day funding.

Our products are tailored for the small to medium-sized business market. While we primarily focus on this sector across all 50 states, we occasionally handle deals up to $15 million through syndication or partnerships, depending on the deal’s uniqueness.

Q. FAVO Capital stands out for its innovative approach to funding. How do you keep the innovation process aligned with your mission to genuinely support and uplift small businesses across America?

At FAVO Capital, we ensure that our innovation process aligns with our mission to support small businesses by emphasizing advanced technology, data analytics, and exceptional customer service. We leverage both in-house and third-party advanced technologies to streamline application and approval processes, making it quicker and more efficient for businesses to access the funding they need. By utilizing data analytics, we can accurately assess a business’s cash flow and creditworthiness, allowing us to offer more tailored funding solutions. We prioritize exceptional customer service by providing personalized support, ensuring clients thoroughly understand their funding options and feel confident in their decision-making.

Q. Small businesses have unique challenges and opportunities. How do you customize your funding options to meet the specific needs of each business you work with?

FAVO Capital specializes in tailoring funding options to meet the unique needs of each business. We begin by thoroughly understanding each client’s goals, challenges, and requirements through a swift yet comprehensive consultation. Our team engages with business owners to discuss their financial needs, operational dynamics, and growth aspirations, allowing us to develop personalized funding solutions.

We offer flexible repayment terms to align with businesses’ cash flow cycles and provide continuous support to ensure clients have the resources they need throughout our partnership.

Our experienced team is dedicated to supporting small enterprises with a range of options, from Merchant Cash Advances to Invoice Financing. We guide clients in selecting the right solution and ensure a fast application and approval process without rigid requirements.

By focusing on a personalized approach and leveraging our expertise, we ensure that each business receives funding solutions that are not only suitable for their immediate needs but also supportive of their long-term success. This commitment to customization helps us empower each client to sustain and grow their operations in an increasingly competitive market.

Q. Financing can be complex for many business owners. How does FAVO Capital simplify the process to make it more approachable and less stressful for those who are new to business financing?

We have simplified the financing/funding process by offering an efficient and user-friendly online application that takes just minutes to complete. At FAVO, we prioritize clear communication, providing straightforward information about funding options to help business owners understand their choices easily. Our flexible repayment terms align with each business’s cash flow cycles, allowing clients to manage their obligations comfortably.

Our dedicated team is available to answer questions and support clients throughout the process, ensuring a smooth and reassuring experience. For small business lending, where audited financials may be limited, our technology-driven approach sets us apart. By accessing clients’ live bank accounts, we gain real-time insights into cash flows and can assess their ability to service loans within 2 hours.

Our integration with bank accounts enables hassle-free repayment through automated deductions, ensuring timely collections and reducing default risk. Our technology also supports daily repayments, helping SMEs manage cash flow and providing us with valuable insights for future needs.

Q. Can you share a success story where FAVO Capital’s funding made a significant impact on a client’s business? What did this experience mean to you and your team?

We are proud of the success stories we contribute to every day by providing timely funding support. Among thousands of inspiring stories, one that stands out is the success of a cosmetic manufacturing company that experienced rapid growth through social media. The company needed significant funding to expand its online business and secure shelf space in major retail chains. FAVO Capital provided a tailored financial solution, including a series of capital deals, which allowed the company to successfully secure partnerships with prominent retailers like Walmart, Target, and Ulta.

This is just one example of many successful partnerships we have been part of, and we are honored to contribute to the growth and success of so many businesses. It’s a small role we play in the advancement of individuals and future generations.

Q. As you look to the future, what new products or services are you excited to introduce at FAVO Capital? How do you envision these offerings further supporting the growth of small businesses in America?

FAVO Capital is expanding into the private credit market with a private offering of up to $6 million for a bridging equity raise, in partnership with EF Hutton. We’re also exploring uplisting to NASDAQ or another major exchange to enhance our support for small businesses. These moves aim to provide greater capital access, driving growth and innovation.

Our recent “Structured Finance Deal of the Year” win at the 2024 Global Private Banking Innovation Awards highlights our role in empowering small and mid-sized businesses. This award recognizes our partnership with Stewards Investment Capital, which led to the acquisition of FAVO Capital and the integration of all entities under the FAVO Group of Companies. This restructuring, completed in June 2023, included a $37 million transaction to internalize the FAVO Group.

Since then, we have significantly grown, acquiring a technology platform, opening a sales office in Florida, and establishing call centers in the Dominican Republic. We recently secured a major investment from a large offshore state pension fund, reflecting institutional confidence in our potential.

We are also proud to support Stewards Investment Capital, which won the Best Fixed Income Investment Innovation Award for their APEX Structured Liquidity Solution, which is linked to FAVO Capital’s private credit business.This recognition underscores our commitment to innovative financial solutions.

Our recent investment from South Africa’s largest pension fund and growing interest from key institutional investors demonstrate our ongoing commitment to empowering small and mid-sized businesses and driving economic growth.

As we continue to enhance our services and technology, FAVO Capital is dedicated to helping small businesses succeed and contributing to the nation’s economic prosperity.

“Our experienced team provides personalized funding options for new, small, and medium-sized businesses, with a focus on quick, efficient, and flexible solutions.”