How Revenue Based Financing Works without Collateral
Fundraising for all early and mid-stage businesses has always been crucial to meet their working capital and ascertain profitability. To obtain that financial stability and growth, these companies need to take their business to the next level through an influx of capital.
While all entrepreneurs target growth and expansion, not many can implement it for several reasons. Inaccessibility to cash tops the reasons why many businesses are unable to expand their scale of operation, product portfolio, or quality of service offerings.
Traditionally, business owners have been dependent on investors and banks for raising money. They had to hedge equity shares or pay heavy interest rates in return. But that might no longer be the case anymore. Revenue-based financing offers collateral-free funds that businesses need for future growth without diluting equity.
That being said, let’s delve deeper into understanding what revenue-based financing is and how it works.