Accessible Financing Takes Your Business to the Next Level
By:
Bella Gangnes
Do you find yourself saying something like, “If only I had the extra money, I’d add two more sales associates or buy more manufacturing equipment or upgrade our desktops”? While you have revenues offering some cushion beyond your day-to-day expenses, you feel an infusion of cash could take your business to the next level. Did you realize that revenue-based financing (RBF) helps turn your “If only…” into “Done!”?
Is it time to invest in growth?
Remember those adolescent growing pains? Growing your business too fast can prove uncomfortable, too. Being stagnant isn’t a better option. So, how do you grow your business the right way? Answer these few simple questions to see if you need to look for additional funding.
- Is your market or industry booming? You may want to take advantage of the momentum and grow with it.
- Do you have steady cash flow? Your business may be seasonal, but are you seeing your revenues go up year over year? An increasing revenue flow and steady influx of new customers could indicate you are poised for growth.
- Can you deliver on demand? That is, do you currently have more business than you can handle? The demand for your product is there, but your customers are asking for new features, like those of your competitor. You feel like it’s time to increase your product offerings.
Where can you find accessible financing?
As a business owner, you know too well the barriers to obtaining financing. Your friends and family helped you get started, but you recognize they cannot provide the funds you need to grow. Sadly, banks make you jump through additional hoops, asking you to pledge personal property or valuable business assets as collateral for a loan.
You have little or no connection with venture and private equity firms, don’t fit the standard venture profile and/or you have no interest in giving away control of your business. This next round of financing could really take your business to the next level. Thankfully, you do have an alternative.
Would an RBF option work for you?
If you have predictable revenues and healthy prospects for growth, RBF can provide not only the funds, but also knowledgeable investors motivated to help you succeed. With an RBF solution, investors give you capital in exchange for an agreed-upon percentage of your total monthly revenues. Repayment amounts use a pre-defined multiple that offers investors returns over their initial investments. Only your revenues serve as collateral. Because investors have an aligned interest in your performance, they can also serve as encouraging business mentors, helping you make decisions integral to your growth.
If you are a minority or diverse-led business owner, contact Founders First Capital Partners to learn more about RBF and how it can provide accessible financing to take your business to the next level.
