On its website, Revenue Loan proclaims, "Revenue Loan provides funding to companies in exchange for a small percentage of future realized sales. This is Revenue Based Finance"From the get-go we see great things for future entrepreneurs and this company. Revenue Loan has no interest (no pun intended) in taking board seats, or equity in a company. It simply settles for a percentage of the borrowers revenue until the loan is paid back plus interest.
Best thing about this arrangement...they aren't primarily concerned with the payback period. This takes most of the pressure off of the company's owner. In turn it allows the owner to concentrate on growing revenue during the start-up phase; all while it takes a cut out of that growing revenue. Revenue Loans does, however require up to 5x the amount of the borrowed funds to be repaid. This number may seem a bit too high. But it is a fair multiplier considering the owner doesn't have to give up equity, control, or focus when borrowing.
All in all, we think this is a breath of fresh air for any interested business owners. With the exclusivity of venture capitalism, and the scarcity of banking loans...the repayment structure(revenue based financing) of Revenue Loans seems to be the answer.
Right now Revenue Loans is currently in series funding, but keep it in mind as you search for new funding sources.
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