Why you should consider Revenue-Based Financing for your startup

If you want to make an investment in your tech, marketing or team to grow your company, you need external financing. Revenue-Based Financing is a type of loan that is uniquely founder friendly, as you pay back your principal + interest on the basis of a fixed percentage of how much revenue you generate each month. This allows you to pay back more when you are having a good month, and less if it’s the reverse.

Below are 4 more reasons why you should consider this kind of financing.

You cannot access bank financing

Bank financing is the cheapest financing you can get. It is likely however, that banks see that your balance sheet does not have enough assets that they can secure in case you default. This is only normal as a starting company. With our background in equity investing in B2B software companies however, we have a specialized eye for the risks and opportunities of your startup. If we feel there is a sufficient outlook for growth and sustainability of your company, we are willing to provide you with our Revenue-Based Financing loan.

You want to bootstrap

Perhaps you are not interested in having an equity investor on board, as you want to be in full command of the steering wheel. Or you might not want to discard equity investment per se, but at the same time don't want to depend on a VC to become a ‘moonshot'. Revenue-Based Financing allows you to access growth financing, without having to dilute your shares.

You are in between rounds

Especially in the B2B Software vertical, Series A investors look for a very specific kind of traction. It can be that although you have raised your seed round(s), you still feel you are not hitting the right metrics. Maybe you need some more time, with another ‘bridge’ investment to really give your business a boost. 

You seek extra comfort

We see many companies that want to combine an equity raise with our Revenue-Based Financing. Combining equity and Revenue-Based Financing allows you to have the best of both worlds. Furthermore, we often see businesses with a high degree of seasonality that are keen on accessing our Revenue-Based Financing. With our long payback period we provide a welcome layer of extra security to your cash position.