What’s a RevenueLoan?

Capital
to grow
We lend $50,000 to $1 million per company and can make multiple loans to you as you grow.
Flexible Monthly Payments Monthly payments are variable and based on a fixed percentage of your monthly revenue.
Long Term Capital RevenueLoans are normally structured over 5 years but may be repaid faster if your revenue grows faster than expected.
No personal guarantees The loan is secured only against your company’s assets.

Is it a good fit for my company?

For tech
companies only
Software, SaaS, tech services, digital media or similar online/digital businesses.
Capital 
for growth
We fund product development, sales and marketing, new hires, and other growth strategies.
Funds when
you need it
You don’t need to borrow it all up front. We’ll provide further loans to you as you grow.
Retain 
control
We do not take equity, require a board seat or a say in how you run your business.
How much 
can you borrow?
We will lend up to ⅓ of a company’s annualized revenue run rate. We lend $50,000 to $1 million per company.
What you
need to qualify
Revenue: $15,000 per month Gross margins: at least 50% Profitability: not required

Filling the funding gap – what's important to you?

Entrepreneurs can spend a lot of time and energy figuring out how to get the capital injection they need to grow their businesses.

The availability of investment funds from VC’s and angels is tight and equity fundraising is time-consuming and dilutive. Banks don’t have the loan products or underwriting models that suit asset-light technology companies.

Banks Venture Capital RevenueLoans
Quickly funded and back to business
Flexiblity in how you run your company
Maintain 100% ownership
No personal guarantees

A better deal than banks or equity

RevenueLoans work differently to traditional bank loans and venture equity - there is no set interest rate, fixed monthly repayments or costly equity investment

More flexible than the bank

We lend more to early stage growth companies

  • Interest rates can be lower for banks than RevenueLoans but beyond small lines of credit, banks can rarely lend enough for early stage growth capital.
  • Bank loan charges and fees can also set you back $20,000 over the life of a loan.

Monthly Repayments rise and fall with the ebb and flow of your revenue

Your Monthly Repayments
Revenue Loan Rate
Monthly Net Cash Receipts
  • Repayments adjust to what your business can afford.
  • The RevenueLoan Rate is always below 10% so as to not impact the running of your business.

How fast you repay your RevenueLoan depends on how fast your business grows.

  • RevenueLoans are normally repaid over 5 years but if your revenues grows faster than planned you will pay off the loan sooner.
  • Banks, on the other hand, can make it very difficult or expensive to terminate a loan early.
Far cheaper than equity

RevenueLoans use a simple, transparent pricing model so you know your total commitment from day one.

RevenueLoans have three costs:

  • A Payment Cap
  • A small negotiated success fee only if you sell  your business
  • And minimal legal expenses  (usually between $3,000 & $5,000)
 

The Payment Cap is simply calculated as follows:

Payment Cap
Amount Borrowed
Cost of Funds

It usually equates to between 1.5 to 2.5 times the  amount borrowed – paid back over 5 years.

Venture capital is not free - in fact it is vastly more expensive in the long run

  • The equivalent “payment cap” for Venture Capital can be 10 to 20 times (or more) the amount they invest with you.
  • And initial legal fees and expenses can easily reach $30,000.

What’s it like working with Lighter Capital?

We succeed when you succeed

“Lighter Capital made the entire process simple and easy and showed a true interest in not only ensuring Lighter Capital was the right fit for our company, but that they could help VirtualQube grow leaps and bounds.
VirtualQube
Scott Gorcester,
Founder and CEO

Lighter Capital was founded in 2010 by a group of entrepreneurs and venture capitalists who believed there was a better way to fund growing technology businesses in the USA and Canada.

Our RevenueLoans are structured so our return depends on your company’s performance. Therefore it’s in our interests to work with you to help you grow. We will be involved as much or as little as you like. We can:

It’s why, having completed over 40 financings with more than 30 companies, we are the leading provider of revenue-based financing for growing technology companies.

About the application process

We want to make the process as light as possible – no long applications or waiting for answers. Our aim is to get you funded in around a month so you can focus on your business.

Company Snapshot

To get things started we just need a quick snapshot of your business It shouldn’t take you more than 10 minutes.

Get to know each other

Next we’ll contact you to get some more detailed financial information about your business. Our investment team will then call you to learn more about you and answer any questions you may have.

Close the deal!

By now we should both know if a RevenueLoan is a good fit for your company. We’ll issue a term sheet for you to review and if it works for you we will get the official agreements signed and you’re good to go!

Apply here
Don’t worry - we won’t share any of your financial information with anyone outside of Lighter Capital.