Revenue-based Financing
  • April 5, 2023
  • Seo Team
  • 0

Festivals bring an abundance of feelings and good vibes to buyers and sellers. Sellers enjoy good sales offline or online as product demand generally reaches its peak. It creates ample opportunities for businesses to grow and drive more sales, and many sellers take benefit and earn good profits for the year. However, some find it challenging to fulfill the increasing demand, especially for MSME manufacturers. MSME manufacturers lack adequate cash to keep their operations running and complete the orders during the festive season. In the shortage, they quiet the market in between rather than earning profit or looking for various funding options available. For the last some years, manufacturers are opting for short-term finance for the festive season introducing Revenue-based Financing. Let us get an idea of how RBF (Revenue-based Financing) can ease the production process and helps to earn more profit.

Revenue-based Financing-

Revenue-based Financing has emerged as one of the popular funding options for small and growing businesses. It is an easy and quick capital-raising process where the RBF firms provide funds in exchange for some percentage of the gross earnings until a predetermined sum gets paid. A company that raises funds through RBF pays back a certain percentage of the sale to the investors for the pre-decided duration. It is also called Royalty-based Financing.

Why Revenue-based Financing is Preferable?

Nowadays, RBF is preferable because traditional financing options are lengthy and tedious processes to approach for the funds. The process takes so much time collecting documents and other processing steps. Additionally, investors need to place assets as collateral for equity holding. While RBF offers funds without asking for staking any assets or shares and for a short duration. Additionally, RBF is popular because

  • No fear of equity dilution
  • No long Emis
  • Simple and Easy process
  • Quick access to funds
  • Smart AI and automated processes to apply
  • No Collateral or Mortage Requirement
  • Diversified Loans

How does Revenue-based Financing works?

 Revenue-based Financing is one of the safest and easiest loan processes. It does not require your last luminous sale records and statements as traditional investors ask. The borrower needs to apply for funds from investing firms, and after the basic steps and procedures, they can get funds in the shortest period. At the time of the agreement, both parties fix up a percentage of the sale and duration of repayment for a hassle-free repayment process.   

How To Apply For Revenue-based Financing?

Revenue-based financing firms have a different yet easy process to follow and raise funds. One of the leading firms, Vedfin has a fully automated process that offers funds via founder-friendly growth capital. To access it, you need to follow the below steps –

  1. Fill out the application form available on the website.
  2. Their automated data analysis system and AI-enabled software offer customized loan proposals considering your brand, business cycle, trends, and repayment capacity.
  3. You have to pay a fixed amount of your sale as repayment.
  4.  After the repayment, if you need another loan can apply without any terms and conditions.
  5. AI-enabled software provides credit score and growth reports as documentary proof.

So, if you are looking for hassle-free revenue-based financing funds, Click here.

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