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Revenue Based Financing

Flexible repayment based on your revenue

Enjoy a stress free loan with no fixed repayment schedule. Repay in proportion to your revenue.

What is Revenue-based Financing?

Revenue based financing as the name goes is a loan whose repayment is pegged to the monthly revenue of the company. This is a flexible form of repayment as you repay less when your revenue is low and repay more when your revenue is higher, reducing the stress on companies during a slower than usual month. It is also good for new companies who are able to show good record of existing revenues. This can be obtained through your sales record on your POS system, e-commerce network like Shopify , Stripe, or even delivery platforms (e.g. Grab or Deliveroo)

How does it work?

Loan disbursement is typically the same as a business term loan which is unsecured with a maximum loan amount of up to 3x of your monthly revenue. The key difference is in its repayment and you can see below for a quick example of how flexible a revenue based financing can be.
Example: ‍Shally runs a Peranakan cafe in Tanjong Pagar that does both dine-in and delivery orders on Grab Food. She also sells her packaged chilli sauce on Shopee. As such, all her revenue can be easily tracked via her POS system in store, Grab app and on Shopee. With a total monthly revenue is $50,000 and her business was extended a revenue based loan based with the following terms.
Funding amount on day 1
Flat Fee added to principal (10%)
Repayment per month
Processing Fee (3%)
20% of revenue per month
S$3,000 upfront

Repayment Schedule:

Repayment (20% of revenue)
Outstanding Balance
Looking at months 4 and 9 where revenue was $20,000 and $15,000 respectively, repayment was only $4,000 and $3,000 respectively.

Why choose Revenue-based Financing?

Why get your Revenue Based Financing through Beez Rev?

A team that will support you

We have a dedicated team that will walk you through your entire loan process and help you do the market research you need.

We let lenders compete for your loan

Be ready to be spoilt for choice when we help you compare the best deals across all banks and non-banks so you only get the lowest interest rate and the highest cash out amount. Our rates are same as what the banks can offer or even better.

Frequently Asked Questions

Apart from the standard business documents like your bank statements, financials, guarantor’s NOA and CBS report. The more important submissions are:

  • Sales records from sales software or sales management providers like Stripe, Shopify, Shopee, Grab, etc.
  • Forecast of future sales
  • Connectivity to accounting software like Xero
Due to level of administration involved in doing projections and forecast, and also linking of certain sales systems, a revenue based financing can take longer than a regular unsecured loan. Nonetheless this can take a short as 2-3 weeks to as long as 1-2 months depending on the level of administrative capacity of the SME.
The beauty of revenue based financing is that you do not have a fixed interest rate but rather a fixed cost determined upfront. This is because regardless of how long the tenor of your loan, the total fees are fixed. By that way of calculation, if you have stronger revenues and make repayment quicker, your interest rate would be higher. But this is a good problem to have as it means that your business is doing well. The opposite is true, if your revenues are lower and repayment slower, it means that your interest rate is lower.
One of the key disadvantages is the level of administration that is required. As monthly repayments are not fixed, you will need to either connect your sales system to the lender or provide periodic reporting to them so that they can calculate the repayment amount. For many small businesses with haphazard book-keeping, this can be a real struggle and pain and a financing structure of such is not suitable.
As the name suggest, it really depends on your revenue. Some of our lenders can lend up to S$10 million for start-ups. A good gauge would be 3x of your monthly revenue.