Announcing our $25M Salesforce Fund Login

Frequently Asked Questions

Part of being “lighter” is getting you the answers—and funding—you’re seeking as quickly and easily as possible. We’ve designed our website to do just that. This page has answers to most common questions about our funding approach. And if it’s capital you seek, simply apply online ! It’s the lightest and friendliest loan application around.

Do you offer seed funding for pre-revenue startups?

Our revenue-based financing model is best suited for companies that are currently generating at least $200,000 in annual revenue. We require a minimum of $15K in each of your last three months. If you’re a pre-revenue startup, you can still apply online so that we can keep you on our radar. You can also sign up for our newsletter to stay in the loop on Lighter Capital and keep us in mind when you get further along with your revenue model.

What type of companies do you fund?

Our revenue-based financing model is best suited for software, technology and knowledge-based companies. Entrepreneurs in these high-growth, high-margin markets will find our model to be an exciting new way to raise growth capital without giving up equity. Entrepreneurs in industries with inherently more assets (i.e. collateral) will generally find that there are existing sources of capital that are better suited for their needs. Those industries include real estate, food and beverage, manufacturing, construction and related services etc.

Do you only invest in certain geographies?

Currently, Lighter Capital provides funding to U.S. companies only. In the future we plan to begin offering funding to companies based outside of the United States. To stay in the loop on Lighter Capital and find out when we’re expanding internationally, sign up for our newsletter.

How much funding can I get from you guys?

We’re currently offering RevenueLoans® ranging from $50k-$2M USD. You can qualify for a loan for up to 33% of your annualized revenue run-rate. So if you are on track for $1M in sales this year, we can invest about $330k. More about RevenueLoans®

How does Revenue-Based Financing work?

We created the RevenueLoan® to be a light-weight and flexible financing option with entrepreneur-friendly terms. With no dilution, no loss of control, and no fixed repayment schedule, entrepreneurs can stay focused on growing their businesses. It works like a rev-share agreement. We lend between $50k-$2M in capital to help grow your business. Your monthly loan payment is based on a percentage of your monthly top-line revenue. If your revenues drop, so do your payments. This is ideally suited for early-stage companies that are generating sales, but need additional capital to take full advantage of their opportunities and grow as fast as possible. The RevenueLoan® is usually terminated when a predefined total repayment cap is reached, and we target a 5 year payback term, depending on your unique situation. If your revenues grow faster than planned, you pay back the loan a little faster; if they are slower, then your payback is slower. Revenue-based finance aligns us, the investors, with you, the entrepreneur in your sales growth goals – we want you to grow your business and we aren’t pushing for that quick exit. Apply for a RevenueLoan®

Is RevenueLoan® just a fancy way to say “factoring” or “receivables financing?”

No. Lighter Capital does Revenue-Based Financing (RBF), which means we give you unrestricted capital for growth, in return for a small percentage of monthly revenues. “Factors” or “receivables financiers” basically speed up the cash flow from sales that already happened (or are just about to happen). Compared to “factors,” a RevenueLoan® is a bigger amount for a longer time, is for growth instead of working capital, comes with fewer restrictions and impositions on your workflow, and is paid monthly compared to daily or weekly payments.

What do I owe in return?

We will look for a percentage of revenue (in the range of 1% to 10%) until the total repayment cap is reached. Generally, this is calculated and debited monthly via ACH.

If it’s a Revenue “Loan,” then what’s the interest rate?

Unlike a traditional loan, the RBF model doesn’t have a set payment amount each month. Instead, the payment due floats with your revenue level, such as 2% of topline revenue. So, if you beat your plan and grow faster, your “rate” goes up, but if you miss your plan, your “rate” goes down.

Do I keep paying this percentage of topline revenue forever?

No. Payments stop when the return cap has been paid back.

Can I pay back the RevenueLoan® early?

While you may pay back your loan (plus return cap) at any time, there is generally no incentive for paying back the loan early. We may make a special provision if you expect a special event (VC round, for example) in the near term (less than one year).

What do I get besides just the money? Are you guys “adding value?”

Your average commercial bank won’t add much if any value beyond the money — they have hundreds of loans outstanding. A typical VC will be on 4-8 boards and will spend a lot of time and energy helping (or trying to) with strategy, intros, recruiting, mentoring, etc. We’re somewhere in the middle. Our team has a ton of experience with business development and with growing companies, so we will help any way we can, time and resources permitting.

Who is Lighter Capital?

Check out our About page. We’re passionate about pioneering Revenue-Based Financing. We have been technology entrepreneurs, and then taken a turn as angel investors and venture capitalists. But, most of all we love supporting small businesses and startups and we think we have found a better way to do that!
If you think a RevenueLoan® might be the right answer for your business, here are a few things you should know about us (if we get into a serious conversation you’re welcome to speak with any CEO we’ve backed to hear what they have to say as well):
  • We know a lot about how to grow companies and we’re here if you need us — but we aren’t looking for ways to control your business.
  • We strive to be direct, decisive, and fair — so you always know what we’re thinking.
  • We’re willing to roll up our sleeves and know from experience that entrepreneurship is sometimes a contact sport.
  • You’ll have direct relationships with the investing professionals of our company — not junior support staff.
  • We’re happy to work with others — venture capitalists, angels, and banks.

How many investments have you done under this model?

Lighter Capital has made over 130 investments since 2010 and is the market leader in revenue-based financings. We are happy to provide customer references if you still have questions.

What are you waiting for?
Take your business to a new level.