Frequently Asked Questions
Answers to your most important financing questions are here.
Our revenue-based financing model is best suited for companies that are currently generating at least $500,000 in annual revenue.
RBF can fit any company with predictable or repeatable revenue streams. Our revenue-based financing model is best suited for business service companies but can fit almost any business model where a company sells to other businesses.
Currently, we fund companies in the United States, With the exception of Florida, Texas, Connecticut and Nevada for the time being.
We can fund up to $1 million in growth capital to qualified companies with a follow-on rounds of additional funding if needed. You can qualify for a loan for up to 15% of your annualized revenue run rate. For example, if you are on track for $1 million in sales this year, we can fund about $330,000.
Each month, you are asked to report your revenues. You will pay a percentage of revenue (usually between 2% and 8%) until the total repayment cap is reached. Generally, this is calculated and debited monthly via ACH.
RBF is more expensive than traditional bank financing, but less expensive than similar non-bank lenders in the market. Each loan is individually priced based on a number of factors. RBF doesn’t operate like a traditional loan and doesn’t have a set payment amount each month. Instead, you pay a percentage of topline revenue. If you grow faster, you pay more. If you had a slower month, you pay less.
Typically our facilities range from 2-5 years with no penalty for paying it off early.
We can work with equity providers and can even introduce companies to partners that focus on Venture debt from our network. We can work well with most lenders that may be in place but each opportunity is reviewed on a case-by-case basis.
If you have predictable or repeatable revenue, are profitable, or on your way to profitability, and have at least $500,000 in annual revenue, then let’s talk.