What Are the Advantages of Revenue Based Financing?

If you are considering how to take your company to the next level, one of the most important steps is to secure the best financing solution for your business. Gone are the days when a traditional bank loan is best. Even private or institutional investors may not be your ideal solution. At Altmaven Capital, we often encourage entrepreneurs to take a closer look at revenue based financing, one of the key tools we use to help encourage the growth and development of your business. Could it be the right option for your needs?


Why Choose This Financing Strategy?


When it comes to growth capital, your business needs to have the right amount of money in the bank to keep it operational. At the same time, you need to be sure your business’s financing is not going to be too costly. We can help with that.


With revenue based financing, you can choose a longer repayment term. That means you can repay over time, ensuring you are not stifling your growth. In addition, you can often access larger amounts through this method compared to traditional loans. As your business grows, so does your access to capital. The key factor that makes revenue based financing so different, though, is that it provides you with no equity dilution. That is, you are not turning over any ownership of your company when you use this type of investment.

Is This the Best Growth Capital for Your Business?


There are costs. There are limitations. Yet, for many business owners who need growth capital, this option works the best. You will pay back what you owe based on the progress of your business. That may be very quick, or it may take some time. The most important benefit, though, is that your company is getting the inflow of capital it needs right now, without the same restrictions that you would normally have.