Revenue-Based Financing: What It Is & When It’s The Right Choice For Your Business

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Revenue-based financing sits surrounding to other types of investor-sourced funding like venture capital. Using equity funding as a design, you may anticipate it to be really difficult to discover financiers dealing in revenue-based funding. While it’s a reasonably new design for funding with a restricted number of players, there are a surprisingly large number of revenue-based funding investment groups that prominently advertise their services online.

You approach an investor or investment group that offers revenue-based funding, and they like what they see (your average regular monthly income has been $16,000, with strong gross margins). Revenue-based funding sits adjacent to other types of investor-sourced funding like venture capital. Revenue-based funding, like most investor-based funding, is not as extensively offered as debt-financing. Using equity financing as a model, you may expect it to be really difficult to find financiers dealing in revenue-based funding. While it’s a fairly brand-new model for funding with a minimal number of gamers, there are a remarkably large number of revenue-based financing investment groups that prominently market their services online.

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