Exploring Pipe Competitors and Alternatives: An In-Depth Analysis

Pipe connects institutional investors and businesses eager to monetize their future revenue in exchange for immediate capital. It offers a swift avenue to non-dilutive funding.

While Pipe is a promising platform for Revenue Based Financing (RBF), many business leaders look for alternatives to suit their specific needs. Like them, your quest for potential Pipe alternatives ends here.

In this post, we'll break down top-notch competitors to Pipe, including Ratio, Founderpath, and Liberis. From standout features to pricing, we've got you covered.

Ratio

Ratio is a top-tier financing platform that allows you to convert your recurring revenue contracts into instant cash. This non-dilutive, zero-debt funding approach is anchored on your company's performance.

Unlike venture debt, using Ratio keeps your balance sheet clean and free from added liabilities or interest payments.

Ratio offers two products: Boost (for RBF) and Trade (for True Sale Based Financing (TBF)).

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Ratio Boost

Ratio Boost helps you offer your customers a Buy Now, Pay Later (BNPL) option.

Imagine steering a robotics enterprise, and you're eyeing a 2-year, $200K contract with a potential client. But there's a hiccup: the upfront cost might be too steep for them. That's where Boost steps in, allowing you to offer Robotics-as-a-Service. It enables your client to make manageable quarterly payments of around $25K (with a slight premium for payment flexibility) over two years. The cherry on top? With Ratio, you pocket the full $200K immediately.

If your customer hesitates at the premium, you have the flexibility to settle for slightly less than the $200K to benefit from immediate cash.

This arrangement addresses cash flow challenges, lets you recoup the Customer Acquisition Cost (CAC) on the spot, and offers payment adaptability to your clients. It’s a win-win for everyone.

It’s worth mentioning here that Ratio bears the underwriting risk.

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How Does it Work?

Step 1 - Kick things off by signing up on the Ratio app. It's a breeze—just feed in your business details.

‍Step 2 - Once you get the green light, seamlessly weave Boost right into your checkout flow, CRM, or CPQ.

‍Step 3 - Thanks to Ratio's savvy underwriting, your customers get BNPL options with tailored quotes and schedules.

‍Step 4 - Here's the clincher: Ratio fronts you the cash instantly while your customer settles up with them based on the terms hashed out in Step 3.

Payment Terms

Ratio offers three payment options for the cost of financing:

Seller pays: Your company absorbs the cost of financing for the customers, also called the discount rate. If the discount rate is 10%, and you sell a $200K contract, you get $180K. Ratio offers discount rates within the range of 8%-15%.
Buyer pays: The customer pays the entire cost of financing. Continuing our example, the customer would pay $220K, and you’ll get $200K.
Split 50/50: Both parties share half of the cost. The customer pays $210K, and you get $190K.

The discount rate varies based on your customer's creditworthiness.

Benefits

Seal the Deal Quicker - With Ratio Boost, you provide your clients with flexible payment options, cutting down on negotiations, and sealing deals in record time.
Boost Your Conversions - Say goodbye to requiring upfront payments from your customers. Minimize deal delays or losses due to short-term budget hiccups, ensuring a smoother transaction for your customers.
Reduce the Need to Offer Discounts - Why slash prices when you can provide flexible payment alternatives? Empower your customers with choices that benefit both sides.
Fortify Your Financial Stability - Shift potential risks away from your ledger. With Ratio, you can bolster your working capital and breathe easy.

Ratio Trade

Ratio Trade transforms your assets, such as receivables and contracts, into immediate cash via a non-debt, non-dilutive true sale, all without customer involvement. Meanwhile, Ratio Boost provides a BNPL solution tailored for businesses, integrating seamlessly into vendor sales workflows.

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How Does it Work?

Step 1: Link your bank, financial, and billing systems to Ratio Trade via a user-friendly portal.

Step 2: Await Ratio's decision — approval or decline within 48 hours.

Step 3: Upload your annual or multi-year contracts.

Step 4: Receive a cash offer from Ratio for each contract.

Step 5: Accept, and watch the funds roll into your account!

Payment Terms

Ratio Trade purchases your cash-producing assets in exchange for an immediate payment.

This payment factors in a fee (the discount rate) for their service of accelerating your future cash flows. Discount rates range from 1% to 15%+, determined by risk, contract duration, and repayment terms.

The table presented below gives a broad idea of how it works:

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Benefits

Maintain a balance sheet free from debt and without dilution.
Enjoy a repayment grace period of up to 12 months.
Receive approval in as little as 48 hours, with funds deposited into your account shortly thereafter.
You only pay Ratio when your customer pays you.

Key Differentiators

Boasting a $400M credit facility dedicated to customer financing, Ratio stands out as a prime choice for enterprises in need of liquidity.
It empowers robotics firms to offer 'Robotics-as-a-Service' to their clientele, a game-changer in an industry where hefty capital investments are the norm.
Ratio is celebrated for its flexible payment terms and 0% financing possibility.

Integrations

Ratio integrates with accounting, banking, and payment software like Freshbooks, QuickBooks, Xero, Plaid, Recurly, Stripe, and more.

You can find the complete list of integrations here.

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Tools Offered

Ratio offers a funding repayment calculator that allows you to compare various options like venture debt, revenue-based financing, Ratio, and more.

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Founderpath

Founderpath provides bootstrapped SaaS founders with capital by converting monthly subscriptions into immediate cash.

Unique in offering repayment terms extending beyond 12 months, they boast competitive discount rates starting at 8% and allow penalty-free prepayments.

Additionally, Founderpath does not look at the personal credit scores of founders or any team members during business health assessments.

Founderpath has already provided growth capital to 3000+ bootstrapped SaaS founders across the globe.

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How Does it Work?

Step 1: Link up with the tools you use for billing, accounting, etc.

Step 2: Receive your Founderpath Score (up to 1,000). A higher score unlocks more capital and superior terms.

Step 3: Funds land in your account in less than 24 hours

Benefits and Key Differentiators

With Founderpath, founders always know their available capital and can access even more favorable terms over time.
Broaden your horizons; Founderpath services are open to companies globally.
Gain exclusive entry to a community of SaaS founders, with ten new members welcomed each week.
Unlock exclusive business insights for SaaS founders by evaluating 400+ parameters.
Enjoy 1-to-1 coaching sessions and useful courses like - “How to Exit.”

Payment Terms

Founderpath provides tiered plans to access greater funding opportunities. While the complimentary tier allows for funding up to 30% of your revenue, premium tools such as SaaS Valuation, Business Economics, and Customer Hub come with enhanced features in the paid versions.

They offer two paid plans: Pro and Enterprise, which cost $250/month and $2500/month, respectively.

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Tools Offered

Founderpath presents complimentary reporting tools that monitor crucial metrics such as CAC, MRR, ACV, and Churn. Additionally, it provides payroll insights, actionable strategies to enhance customer acquisition based on your current data, and industry benchmarks.

Explore their suite of tools, including the Customer Hub, Business Metrics, and the Company Valuation Calculator. Opting for the paid plans will grant you deeper insights and access to an expanded data set within these reports.

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Liberis

Liberis, a UK-rooted RBF platform, boasts backing from prominent banks such as HSBC and Barclays. They deliver swift and straightforward funding solutions, offering up to $1.3M tailored to your business's cash flow.

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How Does It Work?

Getting funding from Liberis is pretty straightforward.

‍Submit the Essentials: Enter your business details, contact information, average card sales, and desired funding amount.

‍Review Options: Liberis will roll out a variety of tailored quotes for your consideration.

‍Secure Funds: Once selected, Liberis will promptly disburse the funds, setting a repayment plan that scales with your revenue.

Benefits and Key Differentiators

Since its inception in 2007, Liberis boasts a rich history of supporting businesses:
Facilitated funding in over 45,000 transactions
Formed partnerships with 300 global entities across three continents for embedded financing
Delivered more than $1 billion in capital to businesses across three continents
Maintained an 89% finance renewal rate among their clientele
Liberis champions its 'Cashback for Green' initiative, rewarding businesses with cashback incentives for eco-conscious investments in areas like renewable energy and sustainable transportation.

Payment Terms

Liberis implements a set percentage fee on your daily card revenue, determined by various contributing factors. Their primary stipulation is a minimum monthly repayment of 3% on the borrowed amount. So, if you secure $100,000, your monthly commitment stands at a minimum of $3K.

Tools Offered

Liberis features a funding calculator, enabling businesses to gauge their potential eligibility for financial support.

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Pipe Alternatives - A Quick Comparison

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Conclusion

Ratio, Founderpath, and Liberis are top-notch alternatives to Pipe when it comes to swift, non-dilutive capital.

Ratio leads the pack with two standout offerings: Boost and Trade.

Boost provides a BNPL feature, integrating seamlessly into any sales process. Plus, it comes with flexible financing options, with Ratio handling the underwriting risk.

Trade, on the other hand, enables businesses to convert future contracts into immediate cash, offering a reliable source of rapid funds.

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