1 / 3

Why Revenue-Based Financing is the best way for startups & what are the benefits

Parallelcap providing the best possible service and help you grow your business!

parallel2
Download Presentation

Why Revenue-Based Financing is the best way for startups & what are the benefits

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Why Revenue-Based Financing is the best way for startup & what are the benefits? Why Revenue Based Financing is best for Startup businesses? Did you know? According to research, more than 80% of "unbankable" businesses and entrepreneurs are turning to revenue-based financing rather than choosing other alternative financial sources. While those companies already in the horse of big businesses have assets and excellent credit and are eligible to take a loan from the banks, what about those businesses that generate revenues but have no collateral assets or perfect credit and also those that are new and have budding startups? For this reason, Revenue-Based Financing is acing it and offering other alternative options to new businessmen and startup businesses. What is Revenue-Based Financing? Revenue-Based Financing is also known as Royalty-Based Financing, the capital-raising method in which money lenders like Parallel Cap agree to provide you with capital with no exchange of collateral assets or credits. However, in exchange for a set percentage of a company's gross revenue in the future, The businesses need not give away their company's ownership or any company's administration into the hands of the lender. As you see, RBF is much easier and less risky and does not need many documents to apply.

  2. How Revenue-Based Financing works: *A startup business approaches the lender to avail of a loan against periodic revenue or EMIs. *Lenders estimate future revenue for the business and determine a percentage based on that. A variety of business-related requirements are met with the funds provided by the facility. The financier receives a fixed percentage of the company's revenue as repayment for the borrowed Sum. Many Startups find it difficult to get a loan sanctioned by any institution. However, the Parallel cap follows relatively fewer requirements for sanctions for startup owners. Here are some benefits of Revenue Based Financing for Startup businesses: Fast & Effective: It manages immediate requirements of cash. As a result, the owner can access funds and facilitate capital growth through this option. Safer: Startups are not required to promise personal assets to avail RBF. Or need not give any portion of ownership or administration of the business. Adaptable: If the revenue is less, then the amount percentage is also less. Transparency: The lender always has a clear idea about the repayment and the clearing of the debt. Relaxed Repayment Timing: It is usually possible to choose a longer repayment term and the terms are relaxed. It allows the startup to pay the debt without any stress or tension.

More Related