Revenue Loan Definition
Revenue Loans are a type of business loan for growing technology companies from specialist non-bank lenders like BOOST&Co.
The main feature of a revenue loan is that the repayments are calculated as a percentage of the revenues received by the company every month. This percentage is fixed at the beginning of the loan and payments are made until an agreed total amount has been repaid by the company.
The total amount to be repaid includes the principal of the loan, as well as an additional payment to take interest into account. This additional payment is called a “cap”. The cap is also fixed at the beginning of the loan, so that all of the costs are know up-front.
We think revenue loans are great for businesses with high gross margins and recurring revenue models like SAAS or subscription services.
Revenue Loan by BOOST&Co
BOOST&Co has been crafting loan solutions for fast-growing SMEs for more than a dozen years. To discuss how we can work together to create a revenue loan solution get in touch with us. The best way is to give us a call, or to leave us some information about your business.