The global revenue-based financing market size is projected to reach over $42MM by 2027. And why not? Recurring Revenue Financing (RRF) is, after all, a compelling alternative for businesses looking to secure quick growth capital without the drawbacks of traditional financing.
SaaS companies facing high burn rates and limited working capital should aim to target a 12- to 18-month runway to effectively manage their accelerated cash consumption. To maintain financial stability, businesses often turn to traditional funding options such as venture capital or loans, which can be fiercely competitive and come with strings attached.
In the fast-paced startup finance arena, Venture Capital has traditionally reigned supreme—but not without strings like equity dilution and loss of control. In a telling shift, VC funding plummeted to $76 billion in Q1 2023, down 53%.
The US is home to over 32 Revenue-Based Financing (RBF) companies collectively managing 57+ distinct funds totaling more than $4.31 billion in capital. This growth is driven mainly by the demand for subscription-based payments.
Revenue-Based Financing is an innovative way to secure funding while simultaneously mitigating risk and maintaining control. As a leader, embracing RBF demonstrates your commitment to exploring diverse funding options and encourages your team to think creatively about how to tackle financial challenges.
True Sale Based Financing (TBF) is a transaction where cash-generating assets (accounts receivable, annual contracts, multi-year contracts, etc.) are fully transferred from a seller to a buyer for a purchase consideration. Understand the value of true sale based financing and why it matters to the long term success of your company.
ASX companies under Appendix 4C mandates can use True Sale Based Financing (TBF) to convert longer term contracts with staggered cash flows into instant cash. The standard accounting treatment for True Sale makes it possible to substantially boost short-term cash flows.
BNPL offers SaaS customers an accessible and manageable way to make purchases matching their cash flow needs and budget/approval constraints