Revenue based financing helps businesses procure equity free capital, henceforth keeping full control of the business without diluting equity. Also RBF investors take no role on board, allowing founders to have complete authority over decision making. During high business volume periods like sale sprees, festive season, etc., you can can use this capital to grow faster.
RBF allows start-ups to pay dynamically with no fixed repayment instalment. Fixed EMIs from institutional loans add a lot of strain on your monthly inflows so a customisable debt structure can come in handy to grow sustainably during high-business volume periods. Through Revenue Based Financing, brands get access to capital with flexibility in tenor and monthly revenue share.
Revenue financing is basically focused on businesses short term capital requirements such as working capital, inventory fulfilment, etc. Start-ups can go for multiple rounds of fundings if they are showing promising growth over the time. Ideal revenue funds duration looks in between 4 to 9 months. By repaying faster, brands can unlock similar or larger capital sizes for what comes next on their growth plan.
Revenue financing is done on the basis of businesses previous months performances, collectibles, growth etc. High data driven risk assessment is done on the financial performances to see if it matches investors gating requirements. Unlike NBFCs and banks, RBF requires no mortgage as a guarantee.
Direct-to-consumer brands and eCommerce businesses which have at least 6 months of revenue history and minimum 5 lakhs of monthly revenues.
Banks typically provide loans against collateral and seek personal guarantees, have long turnaround time and look for multiple years of profitability.
RBF offers a fast and flexible alternative source of growth capital that currently doesn’t exist in India. With revenue-based business loans, you can grow your business at your own terms without losing any equity.
Once you’ve filled up your online application which takes under 2 minutes, we get back to you within 24 hours. From application submission to the money being raised, the entire process wraps up within 7 days.