Revenue Based Financing

By: argentstrategies June 28, 2022 2:53 pm

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A type of loan that is issued to a company based on the amount of revenue that company generates over a certain period of time. The amount of the loan is normally directly linked to the amount of revenue being generated, as the less revenue there is, the more risk exists of a default by the borrower. This is not a normal method of financing for early stage ventures, as they often do not have enough revenue to qualify for the loan.

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