Revenue Based Financing Nederland

Revenue based financing is an alternative or complement to equity or debt financing.

Revenue based financing nederland. Below we highlight the pros and cons with respect to other traditional startup financing options. As a good fit for growing startups it allows startup founders to maintain more ownership and control of their business than they would under equity financing. Once the payments have totaled the funding amount plus an agreed upon multiple cap the repayment obligation has. Revenue based financing is an alternative growth investment structure with different mechanics provisions and return profiles than either equity capital or traditional lending products.

Investors began applying it to early stage companies in the 1980s. 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. It is first and foremost a debt instrument that is paid back by sharing in a company s revenue. Revenue based financing is perfect for saas businesses and other companies whose primary income is based on subscriptions.

Revenue based financing or royalty based financing rbf is a type of financial capital provided to small or growing businesses in which investors inject capital into a business in return for a fixed percentage of ongoing gross revenues with payment increases and decreases based on business revenues typically measured as either daily revenue or monthly revenue. In exchange for funding as your business generates future revenue a percentage of cash receipts usually between 3 8 are remitted monthly. Het belangrijkste voordeel voor de founders is dat zij geen equity weg hoeven te geven. Wat is voor founders het voordeel van rbf ten opzichte van andere meer traditionele venture capital financieringsvormen zoals aandelen of convertible notes.

What is revenue based financing. Revenue based financing houdt dus het midden tussen traditoneel venture capital en bankfinanciering. Revenue based financing rbf is non dilutive funding based on your business s recurring revenue. It could also be useful to other small businesses that need money for growth but can t get a term loan or line of credit.

Investors inject growth capital in exchange for a percentage of monthly revenues. Revenue based financing also known as revenue sharing or royalty based financing is a method of raising capital for emerging and high growth businesses.