- FAVO recently secured an $8 million equity investment to fund growth and accelerate its plan to uplist to the Nasdaq Capital Market
- The company voluntarily converted all super voting Series C Preferred Shares, simplifying its capital structure and improving governance transparency
- With SMBs turning away from traditional banks, FAVO’s revenue-based lending platform meets rising demand for fast, flexible funding solutions
As inflationary pressures and elevated interest rates strain traditional financing channels, small and medium-sized businesses (“SMBs”) are increasingly seeking alternative funding sources to maintain liquidity and drive growth. Bank approval rates for SMB loans have dropped significantly – from 83% in 2019 to just 68% in 2022 – creating a wide credit gap. This shift has accelerated demand for alternative lending options like merchant cash advances (“MCAs”) and revenue-based financing (“RBF”), which offer faster, more flexible access to capital.
Within this expanding sector, FAVO Capital (OTC: FAVO) stands out as a fintech-driven private credit firm built specifically to meet the evolving needs of underserved SMBs. The company has a multi-prong digital approach, including the development of an advanced digital platform designed to enhance client engagement and streamline funding processes.
Now, with fresh capital and governance reforms, FAVO is preparing for its next big milestone: an uplisting to the Nasdaq Capital Market.
Institutional Confidence Bolsters Growth Strategy
On May 6, 2025, FAVO Capital announced an $8 million Series A Preferred equity investment from Stewards Investment Capital, a global asset manager specializing in fintech and private credit. The investment is a clear signal of institutional confidence in FAVO’s growth trajectory, platform scalability, and strategic vision.
“This funding further positions us to serve the capital needs of underserved SMBs with speed, flexibility, and transparency,” said FAVO CEO Vincent Napolitano. The investment will be used to accelerate SMB lending, strengthen the company’s balance sheet, and expand embedded lending partnerships. It also allows FAVO to restructure a portion of its outstanding debt, increasing its financial agility ahead of its planned Nasdaq uplisting.
Governance Overhaul Reflects Public Market Readiness
Just a week after the funding news, FAVO took another major step toward its Nasdaq ambitions by announcing the voluntary conversion of all outstanding Super Voting Series C Preferred Shares into common stock. This move simplifies the company’s capital structure and aligns voting rights with shareholder-friendly governance standards expected on senior exchanges.
“Converting our Series C Super Voting Shares demonstrates our commitment to transparency, governance and best practices,” said Napolitano. “It’s another important step forward as we align our structure with shareholder and institutional investor expectations.”
By eliminating super voting rights, FAVO has increased accessibility and reduced barriers for potential institutional investors, a crucial element for long-term capital market success.
Riding a Multi-Billion Dollar Lending Wave
The timing of FAVO’s expansion couldn’t be more favorable. The MCA market, valued at $19 billion in 2021, more than doubled from five years prior. Meanwhile, the RBF market is expected to grow from $4.75 billion in 2025 to $14.5 billion by 2034, according to recent projections.
FAVO’s fintech-first approach allows for quick underwriting, dynamic risk assessment, and loan structuring that reflects real-time business conditions far beyond the rigid credit models of traditional banks. With over 10,000 SMBs already served, the company has built a scalable foundation for national growth.
As economic volatility persists and access to bank credit remains constrained, businesses are prioritizing flexibility, speed, and financial partners who understand their day-to-day cash flow dynamics. FAVO’s revenue-based financing options offer exactly that, tying repayments to company revenue and easing pressure during slower months.
Positioned for Public Market Momentum
With a simplified share structure, new institutional capital, and an increasingly vital service offering, FAVO Capital is methodically laying the groundwork for a Nasdaq uplisting. Such a move would elevate the company’s visibility, attract new classes of investors, and unlock greater access to capital for continued expansion.
As SMBs continue to seek more agile, non-bank financing partners, FAVO Capital appears well-positioned to meet that demand while simultaneously transitioning from a small OTC company to a player with national ambitions and institutional credibility.
For more information, visit the company’s website at FAVOCapital.com.
NOTE TO INVESTORS: The latest news and updates relating to FAVO are available in the company’s newsroom at https://ibn.fm/FAVO
