Introducing: Design-A-Loan, from Lighter Capital!

by Rob Belcher on Thursday, March 22, 2012

This week we launched a new feature on our website creatively called: "Design-A-Loan" !

With a minimal amount of data and a couple clicks of the mouse, you can design the financing option that works best for your company and situation.

Check it out at: https://secure.lightercapital.com/designaloan.aspx or just click the pic below!

2 Comments

  • Nick said

    Hello,

    I'm confused about what a RevenueLoan rate is... is it an APR? IRR? How should I think about what a RevenueLoan rate means?

    Thanks,
    nick

  • Rob Belcher said

    Hi Nick,

    A revenueloan is the percent of monthly top-line revenue that makes up your monthly payment. So if your company makes $100,000 one month and your revenueloan rat is 5%, then your payment for that month is $5,000 towards your revenueloan repayment.

    Calculating APR / IRR a priori is very hard with a variable, flexible revenue-based structure (as opposed to a fixed payment loan like a mortgage), but we target between 15 and 30% interest and use your company's historic growth rate and any pro forma information you might have on future sales to accurately structure the RevenueLoan Rate to hit this target.

    Just like I would in excel, the Design-a-loan tool uses your historic revenue inputs to model all of these things and provide a revenueloan estimate.

    I hope this helps.
    Rob

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