What is Revenue Based Financing?

What is Revenue Based Financing?

What is Revenue Based Financing?

Revenue-Based Financing (RBF) is a non-dilutive financial model where companies receive capital in exchange for a fixed percentage of future revenue, offering quick access to funds without needing traditional collateral.

The Levenue approach

Levenue is a European revenue-based financing platform that provides non-dilutive capital to companies with recurring revenue. With Levenue, businesses can trade a portion of their future annual revenues in exchange for an immediate injection of capital - without loans or dilution.

Who do we finance?

We finance companies that have a recurring revenue stream. Our main eligibility criteria are:

  • Location: The company must be located in one of our 16 active European countries (Austria, Belgium, Denmark, Estonia, Germany, Ireland, Finland, Latvia, Lithuania, Luxembourg, Netherlands, Norway, Poland, Sweden, Switzerland, United Kingdom)
  • Company type: We finance both B2B/B2C companies
  • Industry: We are Industry agnostic
  • Historic revenue: We require at least 6 months of revenue
  • Revenue: We require more than 30K€ of monthly recurring revenue (MRR)

The process:

Levenue’s process is simple and streamlined, providing a trading limit (maximum funding amount sanctioned by Levenue) within 48 hours. A breakdown of the steps can be found below:

  1. Company connects via APIs/upload bank account documents, accounting software and subscription managers.
  2. Our financial team will immediately begin the analysis by calculating multiple items including the company’s churn rate, net growth, runway and average monthly recurring revenue.
  3. After our analysis is completed, we will issue a trading limit, using data alone.
    • The number of subscribers traded for upfront capital is at the company’s discretion. 
  4. Once the company accepts the trading limit, the deal will go live on Levenue’s marketplace
  5. Investors will bid in a Dutch Auction for the offered contracts until a discount rate is reached. 
  6. Discount rate is accepted and capital is received.
  7. Repayment to the investor:some text
    • Monthly instalments for a 12 month period 
    • The repayment process begins in the first month following the receipt of the funds.

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