Revenue-based Financing. How it works?
How it Works ?
Easy to apply and repayment process
Explained in 4 steps
Apply
Fill the application to kick-start you funding process. Approval takes not more than 48 hours*. Criteria for the application
-Minimum of 3 months in Business with min. $7000 as revenue
Know your Repayment cap
Investment repaid via royalty percentage known as Repayment Cap. It is a fixed amount & thus the tenure of a loan varies. It takes 2-5 years to repay the loan
Decide on the rate
Repayment cap is decided in the beginning while the loan is being granted and agreed between the borrower & the lender. It is calculated as a sum of the Principal + the rate. It is typically between 2x – 3.5x of the principal amount.
Repayment
Investment repaid via Royalty percentage (%) of monthly net cash receipt.
Obligation ends once repayment cash has been reached
RBF loan bifurcation
EXAMPLE LOAN
- Annual Revenues: $1 M
- Principal: $200K
- Maturity: 5 years
- Payment: 5% of monthly revenue
- Repayment: 1.75x principal ($350K)
- Upside Participation $50K at at Liquidity event
How it Works
Our Approach
To provide you with the fastest means of Financing for your immediate / urgent requirement
BETWEEN BANKS AND VC FUNDING
Blend between a bank and a VC funding
Revenue based financing is brings in the advantage of Banks with No equity dilusion or personal guarantee required and VC financing which is relatively faster disbursment than bank loans.
REPAYMENT WITH EASE
Monthly Payments based on revenue
Monthly Payment is directly depended on your monthly revenue. So if you have a seasonal business and businesses are slow, you pay less. Similarly the Faster the company grow faster you payback Repayment cap.
QUICK FUNDING
Get Funded in as less as 48 hours
If all the document are in place, if the company’s current financial health is good and the future looks bright. Then, it may not take more than 48 hours to disburse the funding amount.
Contact
Get In Touch
Royalty based Investment Firm.
With a vision to become a go-to partner for Small business investment, we at World Capital Finance strive to keep the Royalty-based loan process as simple as it could be. Technically, you pay the part of Revenue generated by your firm each month. This leads to a very risk-free model wherein you technically pay nothing if you fail to generate sales/revenue.
