The Rise Of Revenue Based Financing

Lenders should use data analytics to empower companies to grow without losing control.

The rise of revenue based financing. Multi channel revenue real time data and the challenge of seamless experience which traditional capital does not take into account. Here are rbf s typical characteristics. Lighter capital the rise of revenue based financing 4 revenue based financing is an alternative funding model that mixes some aspects of debt and equity. Lighter capital the rise of revenue based financing 4 revenue based financing is an alternative funding model that mixes some aspects of debt and equity.

Recently several entrepreneurs have asked me about revenue financing loans. Both keith harrington. Most rbf is technically structured as a loan. Know the pros and cons of revenue based financing to help you decide the right funding option.

Revenue financing is a fancy way of saying a semi complicated loan where payback is dictated by a number of elements including a percentage of revenue not just a traditional interest rate. The good news is that it provides for a more aggressive non dilutive usually form. However rbf investors returns are tied directly to the startup s performance which is more like equity. Most rbf is technically structured as a loan.

Growth companies today are playing by new rules. The better you do the quicker you pay. Rbf is considered a combination of debt and equity financing. Novel which leans heavily in the b2b software startup space is gaining steady traction with its unique revenue based financing model its co founders say.