Revenue Based Financing Singapore

Like a merchant cash advance your payments fluctuate with sales volume.

Revenue based financing singapore. Revenue based financing is an attractive method of raising capital for companies. It s really interesting for founders because it s non dilutive and in our case works quickly. 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. Validus singapore s based sme financing platform that is also present in vietnam and indonesia has successfully raised over us 14 million with us 20 million in committed capital in its ongoing series b funding round co led by vertex growth fund vertex growth and kuok group s orion fund managed by k3 venture partners.

The monthly repayment percentage runs between 2 and 3 of your business s monthly revenue though it can sometimes get as high as 10. They join validus stable of. The more money your business brings in each month the faster it pays off the loan. 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 is perfect for saas businesses and other companies whose primary income is based on subscriptions. A consistent high monthly recurring revenue mrr along with high gross margins combine to qualify a business for a royalty based loan. How revenue based financing works. But instead of fixed monthly payments you can make daily weekly or monthly payments.