Company Financing with Revenue Based Financing
Bring your future recurring revenues forward and gain financing flexibility
Use Revenue Based Financing for Company Financing
Company financing has evolved with the introduction of alternative finance options, such as Revenue-Based Financing (RBF), which brings several benefits to businesses seeking capital. This new form of financing stands out as an innovative solution, especially for companies that have recurring subscription based models.
One of the key advantages of RBF is the absence of a personal guarantee. Unlike traditional bank loans, which often require personal assets as collateral, RBF does not put the personal property of business owners at risk. This feature is particularly appealing to entrepreneurs who are cautious about tying their personal finances to the business's liabilities.
Another significant benefit of RBF is the preservation of equity. Businesses opting for RBF do not have to relinquish any ownership stake, unlike with venture capital, where equity is exchanged for funding. This aspect is crucial for business owners who wish to retain full control over their company and avoid diluting their ownership.
Businesses need a MRR of 30k, positive growth and a broad subscriber base. Your business needs at least 6 months of financial data for our team to analyse. Currently, we fund European businesses across 16 jurisdictions.
On signup, businesses connect bank accounts, accounting software and subscription managers to our platform. The Levenue algorithm analyses these datasets, and if deemed eligible, our team provides you with a trading limit.
Draw on your trading limit at your discretion. The amount you trade will be offered to investors on Levenue's platform. Our pool of funding partners may then bid on your offering, and come to a fixed price via sealed bids.
Your company connects via APIs, providing access to bank accounts, accounting software and subscription managers. With these, we analyse a company's entire financial history, diving into the growth profile over time, the quality/stickiness of the underlying subscriptions, and the cash burn rate.
After our analysis is complete, we will issue a trading limit, using data alone. It is at the company's discretion how many of their subscribers they will trade for up front capital. Investors bid in a Dutch Auction for the offered contracts until a discount rate is reached.
Levenue can only underwrite recurring revenue. We do not accept one-time retail revenues, for example in an FMCG e-commerce business. If your business has a mix of revenue sources, get in touch to see if you are eligible.
We evaluate growth rate, subscriber churn and cash burn. Furthermore, we look at cash flow stability and the indebtedness of a business. We will continue to constantly analyse these key metrics throughout the life of the trade.