Revenue Based Financing Ecommerce
Revenue based business loans are sometimes referred to as a business cash advance or revenue based financing you receive a lump sum that is based on your monthly revenue.
Revenue based financing ecommerce. Like a merchant cash advance your payments fluctuate with sales volume. Revenue based financing rbf additionally known as royalty based financing is a special kind of financing offered by rbf investors to tiny to mid sized services in exchange for an agreed upon percentage of a business gross revenues. Why every ecommerce company should use revenue based financing. As an industry ecommerce has a spiky revenue profile made up of many seasonal peaks throughout the year.
Banks don t want to have anything to do with them as they don t typically have any assets outside of inventory and venture capital funds tend to avoid investing in individual e commerce companies. But instead of fixed monthly payments you can make daily weekly or monthly payments. Investors inject growth capital in exchange for a percentage of monthly revenues. Ecommerce companies tend to be unloved from a revenue based financing perspective.