Revenue Based Financing Firms

Revenue based financing rbf is a loan in which repayments are based on a percentage of the borrower s monthly revenue rather than a fixed amount.

Revenue based financing firms. Revenue based financing is a way for companies to secure growth capital similar to an equity investment but without any dilution or loss of control. You pay the borrowed funds back as percentage of your future monthly revenue. Check out the options below. According to john borchers co founder decathlon is the largest revenue based financing investor in the us.

This type of small business financing allows you to borrow money up front without pledging any assets as collateral. The following is a list of the world s largest publicly traded financial services companies ordered by annual sales for the latest fiscal year that ended march 31 2018 or prior currently all public companies with sales of 20 billion or more are included while privately held companies are not included. The payments fluctuate with the borrower s financial performance going up when revenue is strong and down when it is lower. We announced a new 500 million fund in q1 of.

A kansas city based revenue financing firm that serves the tech startup market is expanding its reach in the midwest to cites like chicago indianapolis and st. And of course please feel free to add to this list as you do your own research. Investors began applying it to early stage companies in the 1980s. Lighter capital cypress growth capital arctaris montlake capital and union bay capital.

A company may successfully raise the required capital without sacrificing part of its equity or pledging a part of its assets as collateral collateral collateral is an asset or property that an individual or entity offers to a lender as security for a loan. Revenue based financing is an attractive method of raising capital for companies. Revenue based financing sometimes known as royalty based financing was used by oil investors in the early 20th century to finance oil and natural gas exploration and later by the pharmaceutical industry hollywood and energy companies. Like any lending institution some prefer to work in specific industries.

Here s a list of firms providing revenue based loans. Others only cut checks for certain sized businesses. Revenue based financing a complement or alternative to equity financing for growing companies revenue based financing also known as revenue sharing or royalty based financing is a method of raising capital for emerging and high growth businesses.