Revenue-based financing means we give you unrestricted capital for growth in return for a small percentage of monthly revenues. To summarize – revenue-based financing is growth capital. It comes with fewer restrictions and impositions on your workflow, and is paid monthly.

No. Angels and VCs tend to respond positively to revenue-based financing. It gives your company more leverage without diluting equity, which future investors like for two reasons

1. It makes the pie bigger for them.
2. Having fewer early-stage investors means there’s more pie to go around.

There’s also no valuation event, which helps keep things simple.

Many of our clients have used our funding to scale their companies and earn better term sheets from prospective investors, and many of our clients have gone on to raise VC funding.

A revenue loan is a type of financing that investors or venture capital firms offer to small businesses or startups in exchange for a certain percentage of the business’s future monthly revenues.

Typically, the investor or VC firm receives repayment based on the business’s sales until a predetermined amount has been reached.

Ultimately, it depends on your specific business situation.

If you want to maintain complete control of your business, revenue-based financing is probably the way to go.

One of the benefits of revenue-based financing is that the amount due each month depends on your revenue.

So, if you have a slow month, your payment will be smaller. On the other hand, if you have a great month, you will pay more toward your debt.

The more lean months you have, the longer it’ll take for you to pay back your loan—but at least you won’t be hit with huge late fees.

When you are turned down by a traditional lender like banks, investors, or credit unions, account receivable financing products can set in to fill the gap. Speed to access cash flow, as well as flexible credit score requirements, make this financing opportunity desirable. Finding investments in your company, especially from traditional institutions or a private equity firm can be tough.

Revenue-based opportunities are available at a variety of different funding marketplaces, although it is true that a lender like banks, investment firms, and credit unions turn their back on revenue-based financing. A term loan, especially short-term options, can be easier to obtain than say a long-term solution for debt financing.

Yes, you can get approved for business funding. MCA and BCA both accept bad credit, but your terms and cost of capital will be impacted based on personal credit. Having poor credit can significantly impact loan amounts and lender opportunities. The hard truth is that debt funding or investment in your company is based on your credit data. The lower the credit, the harder it will be to find a lender with a viable loan. This is especially true for highly competitive industries like tech companies. Financing firms or lender options will be limited, but as we mentioned, you can find a point of entry with options like MCA and BCA.