Revenue Financing
What is Revenue Financing?
Revenue-based financing is a model for raising funds based on the ongoing revenues of the company. Simply put, a company can pledge a part of its annual revenues in return for growth capital. Typically, early-stage ventures and even SMEs nowadays prefer revenue-based finance as they can get access to funds without any form of collateral or equity dilution. It is considered to be a good source of capital raising for the smaller businesses as it is likely that the quantum of funds they might be looking at would not be significant and the VCs would not entertain pitches or proposals for such fund requirements.
How does Revenue Financing work?
There are firms that specialize in revenue-based financing. To start with, these companies look at parameters like revenues, cash flows, operating margins, scalability, and growth potential among other things as part of their due diligence. Once convinced of the potential borrower’s prospects, they lend the required capital at a mutually decided rate of interest or fee. Interestingly, this is quite similar to how an angel investor or even a VC would function, but what makes revenue-based financing different is the manner in which the funds are repaid by the borrower. The borrower commits to sharing a part of the business revenue with the lender. In other words, both the principal and the fee or interest that the lender charges are returned from the revenues that the company earns during the normal course of the business.
Steps to Get Revenue-Based Financing to Start a Business
- Know The Reason And Amount for the Revenue-Based Financing
- Decide the Type Of Structure You Need
- Compare Financing Firms
- Check Your Qualifications
- Gather the Necessary Documents
- Apply For RBF
Why FundsTiger?
FundsTiger provides different types of loans for different purposes. FundsTiger is a popular online loan platform. Our consumers come to us for their money requirements, whether they are short-term or long-term, small-ticket or large-ticket, personal, family, or business. FundsTiger team brings a wealth of international financial knowledge to the table and tailors it to your specific needs. Money advice, credit advice, wealth planning, and, of course, credit is all available to our clients.
Faster Funding – We are over 80% faster than most traditional banks and lenders
Total Focus on Your Wins – We leverage our technology and business expertise for your financial success.
Customized Loans – We can structure and customize loans for your unique needs
Customer needs in Forefront – Your needs are our priority. We promise to deliver you services that are best on our capabilities. By handpicking the personal loan offers based on customer profiles, we try to give you the most personalized experience.
Trusted Professionals – IIT, IIM, And Ivy League
Support you can rely upon – Monitor your loans 24/7 and reach out to a super-responsive support service
Relationships, not Borrowers – We believe in building relationships, not just lending to borrowers.
More Value for Money – We offer the best value for money loans when compared to all our competitors
Real-time Customer Support – Our customer support team is fast and efficient to clear all your doubts regarding personal loan eligibility, procedures, offers, documentation, and repayment options. We even contact the respective lender on your behalf for you.
Customized Tailor Options – Depending on your demands, we may provide quick financing of varying quantities at affordable interest rates.