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Debtsify

Revenue-Based Financing?

Access to capital is vital for growth

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High interest rates

Negotiable Interest rate

Strict qualification

Easy Qualification

Limited loan amount

Unlimited Amount

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Preserve Equity:

Maintain ownership stake in your business without dilution.

Scale faster:

Increase the size or volume of your business rapidly and efficiently.

No upfront costs:

Start or expand your business without having to pay fees or expenses in advance.

Guaranteed growth: 

Ensure steady and sustainable expansion of your business.

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India’s Fastest & Simplest Debt Provider

What is Revenue-Based Financing?

RBF is an alternative financing approach where investors provide capital to a company in exchange for a percentage of its future revenue. Unlike debt financing with fixed repayments, RBF repayments are directly tied to your revenue stream.

 

This translates to:

  • Flexible Repayments: You only repay when your business generates revenue, offering greater flexibility during slow periods.

  • Focus on Growth: The capital can be used to invest in strategic initiatives like marketing, product development, or team expansion, accelerating your growth trajectory.

  • No Dilution of Ownership: Unlike equity financing, RBF doesn't require surrendering ownership stakes, allowing you to maintain control of your company.

Who Can Benefit from RBF?
 

  • RBF is ideally suited for established businesses with a proven track record of revenue generation, particularly in sectors like:

  • Software as a Service (SaaS)
    E-commerce
    Mobile Apps
    Subscription Services

Benefits of Revenue-Based Financing:

  • Faster Funding: Compared to traditional financing options, RBF can offer a quicker path to securing capital.

  • Alignment with Investors: Investors' success is tied to your company's growth, fostering a collaborative partnership.

  • Improved Cash Flow: Flexible repayments based on revenue free up cash flow for operational needs.

  • Scalable Solution: As your revenue grows, so does your repayment capacity, supporting your scaling needs.

Key Considerations for RBF:
 

  • Revenue Traction: A strong and demonstrably growing revenue stream is essential to qualify for RBF.

  • Business Model: A clear and scalable business model with strong potential for future revenue generation is crucial.

  • Repayment Terms: Negotiate clear terms regarding the percentage of revenue shared and the repayment duration.

Frequently Asked Questions (FAQs) on Revenue-Based Financing
 

  • Is RBF right for my company?

   -  Consider factors mentioned in "Key Considerations"

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  • How much capital can I secure through RBF?

   -  Depends on your revenue traction and 

       investor assessment

​

  • What percentage of revenue will I typically share?

   -  Variable, typically between 5-10%

 

  • What are the typical repayment terms for RBF?

   -  Varies, usually 12-24 months

 

  • What are the tax implications of RBF?

   -  Consult with a tax advisor

 

  • Does Debtsify offer RBF?

   -  We currently focus on unsecured loans for premium

       brands

 

  • Can Debtsify help me understand if RBF is suitable for my company?

   -  Yes, our consultation can explore various financing

       options

 

  • How does Debtsify's unsecured loan application process compare to RBF?

   -  Our process is faster and requires

       less documentation

 

  • What are the interest rates for Debtsify's unsecured loans?

   -  Competitive rates based on your company's profile

 

  • Can Debtsify connect me with RBF providers?

   -  While we don't directly connect with RBF providers,

       we can share general industry resources

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  • What happens if my revenue fluctuates?

   -  Flexible repayment structures can adapt to

       your revenue flow

 

  • How does RBF affect my credit score?

   -  RBF typically doesn't impact your credit score, unlike

       traditional loans

 

  • What are the ongoing reporting requirements for RBF?

   -  You'll likely need to provide regular updates on

       your revenue performance

 

  • Can I use RBF alongside other financing options?

   -  Yes, RBF can be combined with debt or equity

       financing

 

  • What are the exit strategies for RBF investors?

   -  This may involve a buyback of their investment or a

       company acquisition

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