What is the Level Advance best suited for?
Our most successful Advance customers have a clear vision and plan for how they’ll use the Level Advance to grow their business income. They use the Advance to make investments in assets, marketing, or building a team, or to pay for repairs that were keeping their businesses from operating at full potential.
Formulating this plan may require some research-- specifically, what are the types of investments in your industry that can enable your business to do bigger and / or more jobs? For example, our moving businesses use Level Advances to invest in dollies, trailers, and box trucks to take on higher-paying jobs. If you are working with one of Level’s partner apps, they may have resources where you can learn more about growing your business on the app.
Here are some of the ways we’ve seen our customers invest in their businesses:
- Vehicle repairs or part upgrades (e.g., tires, suspension, racks, bed covers)
- New vehicles (e.g., pickup truck, box truck, more fuel efficient vehicle)
- Tools and equipment (e.g., lawn tools, trailers, materials for jobs)
- Expanding the team / payroll
What does it look like to use a Level Advance effectively?
While each customer’s specific use of funds may vary, a common theme among Level “success stories” is that customers are able to use their Advance to grow their earnings per job and overall earnings. Some customers have increased their earnings per job by upwards of 30%.
Why is this important? Remember that you’ll repay your Advance amount, plus a fixed servicing fee, as a revenue share until you’ve repaid in full. Customers who grow their revenue can partially or fully offset their repayment percentage, and move on to keeping the full revenue growth once they’ve finished repaying.
Finally, once you’ve repaid your Level Advance you may be eligible to apply for another Advance and continue investing in your business with Level. Returning customers may be eligible for larger Advances as you build more history with us.
What else should I think about?
Timing. Because your repayment cycle begins when your Advance is extended, it’s most advantageous to have a plan for using your Advance soon after you receive it. We don’t advise that customers let their Advance sit in savings. If now isn’t the right time, you can find Level in the future and reapply.
Seasonality. In many of our customers’ industries, there is a low season during the winter when business owners have more time to do business planning and make investments.
If you have any questions about the Level Advance and if it’s right for your business, feel free to reach out to our Customer Success team at email@example.com or +1 877-414-2955.
Evan Siu, Operations Intern
Janet Chen, Business Operations Lead