RevenueLoan: Filling an Important Gap in Small Business Funding

You need an infusion of capital to grow your business.

The bank says you have insufficient collateral or they don’t lend to businesses in your industry.

Venture capitalists and angel investors aren’t usually interested unless they think you are going to unseat Facebook or cure cancer (home run plays in healthcare and IT) in the next 18 months.

So where can you get the funding you need to grow your business? Who is going to step boldly into this funding gap that the majority of American small businesses fall into?


RevenueLoan logo

Utilizing the Royalty-Based Finance (also known as “Revenue-Based Finance”) model of lending, RevenueLoan provides growth funding to businesses who are not being served by conventional lenders.

No collateral? No Problem!

A royalty-based loan does not require any collateral.

Not interested in giving up 10%, 20% or even 50% of your company for funding? You may have an alternative!

A royalty-based financing does not require you to sell part of your company to the investor. You remain in complete control of your business. You simply agree to pay a small percentage of your monthly revenues – generally less than 5% – until an agreed-upon multiple of the original loan amount is reached.

Yes, this does make royalty-based financing more expensive than a bank loan (if you even qualify for a bank loan), but a royalty-based deal also makes your monthly payment vary in harmony with your revenues.  Try telling your bank that you missed your revenue target this month and don’t want to pay the usual amount, and see what they have to say! With a RevenueLoan, flexible monthly payments that don’t deplete your operating capital are business-as-usual.

Since this loan structure is based upon your revenues, this is not a good fit for most startup businesses that haven’t started generating consistent revenues.  …but if you have an established revenue stream and just need a cash infusion to bump your business up to the next level, RevenueLoan may just be the lone YES in a forest of NO.

ActSeed is glad to welcome RevenueLoan as a valuable resource to the ActSeed community for small businesses and the entrepreneurs who are building them into durable, sustainable, competitive participants in our economy.

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