In times of economic uncertainty, the resilience and growth of small businesses are vital to the prosperity of a nation. As the backbone of the American economy, these businesses drive innovation, create jobs, and fuel local communities. However, many small and emerging enterprises often face significant challenges when it comes to securing the funding they need to grow and succeed. This is where the right financial support can make all the difference—providing the resources and confidence necessary to turn aspirations into reality.
FAVO Capital understands the critical role that small businesses play in America’s future. Backed by a dynamic team of professionals with extensive experience in business, entrepreneurship, and finance, FAVO Capital is dedicated to empowering small business owners across the nation. Their mission is clear: to provide personalized and accessible funding options that cater to the unique needs of new, small, and medium-sized businesses. With a focus on quick and efficient funding, free from the constraints of rigid requirements, FAVO Capital ensures that businesses can get back on their feet and succeed. The company’s vision is ambitious yet attainable—helping to re-launch America by supporting the very businesses that form its foundation, guiding them toward a stable and prosperous future.
At CIO Bulletin, we had the great privilege of interviewing Shaun Quin, President, of FAVO Capital. He shared valuable insights into how his company is committed to funding the dreams of ambitious entrepreneurs and supporting new, small, and medium-sized businesses that drive the next wave of American innovation and success.
Interview Highlights
What inspired the founding of FAVO Capital, and how has the company’s mission evolved since its inception?
FAVO Capital was founded with the inspiration to fill the financing gap that small and mid-sized businesses often face, particularly in dynamic and emerging markets. We recognized a significant opportunity to provide accessible and innovative financial solutions that empower entrepreneurs to grow their businesses and contribute to economic development.
COVID-19 was a major factor in shaping the direction of FAVO Capital, Inc. The opportunity to assist American businesses across the country appealed to us. Being business owners ourselves, we understood the daily struggles that businesses faced during this unprecedented time and knew that the institutional banking environment would be strained. Businesses would require working capital to grow and help the economy flourish again. Despite the Paycheck Protection Program (PPP) Loans offered by the government, these were not enough for businesses to survive. We saw the gap in the private credit sector and seized the opportunity. Since making this move, we have seen exponential growth in our business and sector, with increasing interest and involvement from large institutional investors. Being a public company set us apart from other players in the market and propelled us to the forefront, allowing us to lead and become a major benefactor of the industry’s growth.
This year, FAVO Capital won the ‘Structured Finance Deal of the Year at the Global Private Banking Innovation Awards 2024’. This global accolade celebrates our second-largest shareholder, Stewards Investment Capital’s, instrumental role in facilitating the groundbreaking acquisition of FAVO Capital, resulting in FAVO Capital’s acquisition of all entities comprising the FAVO Group of Companies. This marked a significant milestone for both companies. Since this restructuring in June 2023, FAVO Capital has experienced substantial growth and now sees itself as a key player in the private credit market in the USA.
Can you provide an overview of the various funding options FAVO Capital offers, such as the Purchase of Future Receivables, and other related products? How do these services cater to the specific needs of small and new businesses?
We are a true partner to our clients and mitigate the risks of potential business failure. Why we say that is because every transaction we undertake with our clients is focused on their needs, partnering with them to ensure their success and, in turn, ensuring our success. We do not offer loans; instead, we purchase future revenue that the business will generate from the capital injection we provide today. The revenue is purchased at a discount, and we take on risk with the client as a genuine collaborator.
We also offer, directly or through our partner network, a plethora of funding options:
- SBA Loans
- Equipment Financing
- Invoice Factoring
- Lines of Credit
- Asset-Backed Lending
All products are focused and tailored for the Small to Medium-Sized Business market. However, although our core business is focused on small to medium-sized businesses across all 50 states, we occasionally offer deals as large as $15 million through syndication or collaboration with our partner network, depending on the uniqueness of the deal.
Business lines of capital provide flexible funding solutions. How does FAVO Capital’s approach to lines of credit stand out in the market, and what benefits do you see for businesses using this option for short-term financial needs?
Our approach to lines of capital stands out in the market because of our commitment to providing tailored, accessible, and user-friendly funding solutions specifically designed for small and mid-sized businesses. We leverage advanced technology and data analytics to streamline the application and approval process, allowing small and medium businesses to access funds quickly and efficiently. This approach not only shortens wait times but also simplifies the borrowing experience, making it easier for business owners to focus on their operations rather than navigating complex financial processes.
How does FAVO Capital see small businesses driving America’s financial recovery and growth, and what specific strategies does the company use to help them succeed?
The sector comprises 33.1 million registered companies, which employ over 60% of the workforce across America and account for 62.7% of net jobs created since 1995. This sector also contributes 44% of the U.S. gross domestic product (GDP).
These numbers are staggering. Undoubtedly, small businesses are a vital engine for America’s financial recovery and growth. They contribute significantly to job creation, innovation, and local economies, acting as a foundation for resilient and sustainable communities. As the nation faces economic challenges and transitions, empowering small businesses becomes crucial for revitalizing markets and promoting prosperity.
So, to answer your question, we believe that small businesses play a vital role in the recovery and growth of the United States. We offer tailored financial solutions unique to each client to assist them with the working capital required for success. Additionally, we equip small business owners with the knowledge and resources they need to thrive. At FAVO Capital, we provide financial education, insights into best practices, and guidance on cash flow management, helping entrepreneurs make informed decisions that strengthen their businesses.
One of FAVO Capital’s core missions is to provide varied and personalized funding options. How does your team customize funding solutions to meet the unique needs of each business?
We customize funding solutions with a thorough understanding of each client’s specific circumstances, challenges, and goals to meet their unique needs. We carry out a quick yet comprehensive consultation process where our team engages with business owners to discuss their financial needs, operational dynamics, and growth aspirations.
Our professional, experienced team understands business and business finance and is here to give small enterprises the backing and boost they need. From Merchant Cash Advances to Invoice Financing, we offer a range of options, and our team guides clients in choosing the right one for them. Whatever the reason small businesses need funding, with FAVO they have access to a fast application and approval process and a borrowing system free of 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.
FAVO Capital aims to simplify access to funding by eliminating rigid requirements. What are some of the traditional barriers in business financing that you’ve addressed, and how do your innovative approaches differ from conventional methods?
FAVO Capital is committed to breaking down the traditional barriers of business financing, ensuring that entrepreneurs can access the resources they need to grow and thrive in today’s competitive and dynamic marketplace. We aim to simplify access to funding by eliminating rigid requirements that often hinder small and mid-sized businesses. In the traditional landscape of business financing, common barriers include lengthy application processes, strict credit criteria, and a lack of flexibility in loan terms. Many lenders require extensive documentation and collateral, making it difficult for businesses to secure the funding they need quickly. Our flexible funding options cater to the unique needs of each business, allowing for customized repayment plans and terms that align with their cash flow cycles. By prioritizing transparency and communication, we make it easier for business owners to understand their financing options and choose solutions that best fit their circumstances.
For small business lending, where access to audited financials is often limited, our technology-driven approach sets us apart. By tapping directly into clients’ live bank accounts; we gain real-time insights into cash flows, enabling us to assess their ability to service loans within 2 hours.
Moreover, our seamless integration with clients’ bank accounts facilitates hassle-free repayment processes. Through automated deductions, we ensure timely and efficient collection of payments, mitigating the risk of default and ensuring a steady flow of returns for investors.
Our new technology and automation mechanisms also enable repayment as frequently as daily, which helps SMEs manage their cash flows and business activities. This daily repayment, in turn, provides us with real behavioral insights about their business, helping us serve them better for their future needs.
Can you share one or two notable success stories where a small business benefited significantly from FAVO Capital’s tailored funding solutions? What were the business’s challenges, and how did FAVO Capital’s support help overcome them?
The Problem: Expanding with Limited Capital
One success story that stands out and has inspired many involves a cosmetic manufacturing company that experienced rapid growth through social media. They focused on a specific market and clientele, which propelled them to the forefront of their niche market. With the opportunity to expand their online business to include shelf space in major retail chains across the country, they faced the challenge of securing a significant amount of working capital and investment.
FAVO Capital’s Tailored Solutions
FAVO Capital stepped in with a tailored financial solution that addressed the client’s specific needs. Through a series of capital deals, the client successfully secured partnerships with prominent retailers such as Walmart and Target.
The Impact: Growth and Success
This is just one of many successful partnerships we can discuss, and we are honored to be a part of so many businesses’ growth and success stories. This is the small role we play in the growth of individuals and future generations.
Looking ahead, what are FAVO Capital’s key goals and milestones for the coming years? Are there any new funding solutions or expansions on the horizon that you’re particularly excited about?
In fact, this is the most exciting question for us. We had the privilege of partnering with Stewards Investment Capital just over a year ago, and this has really taken FAVO into a new chapter of our plan. We completed a significant transaction worth $37 million last year to internalize the FAVO Group of Companies into FAVO Capital, Inc. (OTC Markets: FAVO).
This transaction allowed us to acquire our own technology platform, a new sales office in Florida, and two call centers in the Dominican Republic. From there, we secured a substantial investment from a large offshore state pension fund a couple of months back, which is a testament to the team’s hard work, dedication, and years of planning.
We have achieved a major milestone with the investment of the pension fund money under our custodianship, which represents a significant accolade to the brand and what we stand for. There is also growing interest from key institutional investors who are looking to seize opportunities in the burgeoning private credit market in the U.S. More recently, we signed with an investment banking firm based out of New York—EF Hutton—to offer investors an opportunity to be part of our journey. We are embarking on a $5 million bridging equity raise round, of which we are already 50% subscribed at the time this article was being compiled.
This was always a part of our roadmap and plan to uplist to NASDAQ or one of the larger exchanges. Our slow and steady plan is gradually starting to become a reality, and we are immensely grateful to our investors, stakeholders, shareholders, and team for their trust in our leadership to execute on our vision for FAVO.
A Preview of the Leadership Team Driving FAVO Capital’s Success
FAVO Capital is guided by a team of seasoned professionals, each bringing a wealth of experience and expertise to the company. Shaun Quin, the President, boasts over 20 years of business and entrepreneurial experience, having successfully launched and expanded ventures across investment management, finance, technology, retail, and real estate.
Vincent Napolitano, FAVO Capital’s CEO, is a seasoned banker with a strong background from Wall Street, offering invaluable insights and expertise from the financial sector.
Vaughan Korte, the CFO, brings over 15 years of experience in retail, finance, and technology, ensuring robust financial oversight for the company.
Bryan Dumas, the Director of Sales, is a recognised industry expert who leads the national sales and customer service whilst pursuing his MBA in Business Management and ensuring top-notch support and service for clients.
The company also benefits from the strategic acumen of Glen Steward, the Founder and Chairman of Steward Investment Capital, who serves as Chief Strategy Officer and is a member of the Corporate Advisory Board. With over 25 years of experience in the financial industry and directorship roles in multiple African companies, Glen’s strategic insights are crucial to FAVO Capital’s success.
FAVO Capital’s advisory board is equally impressive, featuring Honorable Ernest F. Hart, Bilal Adam, and Rocco Trotta. Hon. Hart, with a distinguished career as an attorney and judge, brings deep expertise in legal systems, compliance, and corporate governance, having served as Senior Special Counsel to the New York Stock Exchange and as a Justice of the New York State Supreme Court.
Bilal Adam, the CEO of Steward Investment Capital, is a Chartered Accountant with over 20 years of global experience in the financial sector. His strategic vision and extensive knowledge contribute significantly to driving FAVO Capital’s growth. Rocco Trotta, founder and Chairman of Liro Group, is a celebrated leader in engineering, honored as Engineer of the Year by the New York State Society of Professional Engineers.
“We had the privilege of partnering with Stewards Investment Capital just over a year ago, and this has really taken FAVO into a new chapter of our plan. We completed a significant transaction worth $37 million last year to internalize the FAVO Group of Companies into FAVO Capital, Inc. (OTC Markets: FAVO).”
“Our professional, experienced team understands business and business finance and is here to give small enterprises the backing and boost they need. Whatever the reason small businesses need funding, with FAVO they have access to a fast application and approval process and a borrowing system free of rigid requirements.”
Source: CIO Bulletin