Announcing our $25M Salesforce Fund

What is Revenue-Based Financing?

A blend between bank debt and venture capital, revenue-based financing (RBF) is a non-dilutive type of capital in which investors lend money to companies in return for a percentage of revenues until the initial loan amount and repayment cap have been paid off.

Revenue-based financing

Why choose Revenue-Based Financing?

  • Get the funding you need.
    Fast.

    Our secure, online application is fast and easy, and companies can receive up to $500K in growth funding in as little as 2-4 weeks. We can provide follow-on rounds in as little as 3-4 business days, up to $2M for companies that qualify.

  • Retain ownership and control your own destiny.

    No equity dilution, no personal guarantees, and no board seat are required. It's your company. 

    Looking for VC funding? Our funding can help you grow your company now so you give up less equity later.

  • Pay based on
    monthly cash flow.

    We understand that monthly cash flows can fluctuate, which is why we have payments that scale up or down with your net revenue. So you won't have to write a fat check during a down month, like you would with a bank loan.

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 $2 million per company.
What you
need to qualify
Revenue: $15,000 per month Gross margins: at least 50% Profitability:not required
See if you qualify ›

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

Raising capital is a full-time job for 3-9 months. That’s precious time you could be using to focus on building your business by developing your product and getting customers.

VC and Angel funding for small, early-stage tech startups is tighter than ever, and requires giving up an equity stake. Most banks don’t have the loan products or underwriting models to help asset-light technology companies. Revenue-Based Financing may be a good alternative for your growing tech company.

Bank Lighter Capital VC & Angels
10%
Expected Annual Return
15-30%
25-100%
Required
Personal Guarantees
None
None
2-6 months
Fundraising Period
2 weeks or less
3-9 months
Warrants / None
Equity
None
Own 20-40% of your company + board seat
675+
Personal Credit Score
Does not affect credit
Does not affect credit

A better deal than banks or equity

Revenue-Based Financing works differently than traditional bank loans and venture equity - there is no set interest rate, fixed monthly payments 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 Revenue-Based Financing but beyond small lines of credit, banks can rarely lend enough for early-stage growth capital.
  • Bank loan charges and fees can cost $20,000 over the life of a loan.

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

Your Monthly Payments
Revenue Loan Rate
Monthly Net Cash Receipts
  • Payments adjust to what your business can afford.
  • The payment rate is always below 10% to minimize the impact on your cash flow.

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

  • Our loans are normally repaid over 3-5 years, but if your revenue grows faster than planned, you can 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

Our Revenue-Based Financing structure uses a simple, transparent pricing model so you know your total commitment from day one.

Revenue-based financing has two costs:

  • A Repayment Cap
  • Minimal legal expenses (usually around $3,500)

The Repayment Cap is calculated as follows:

Payment Cap
Amount Borrowed
Cost of Funds

The cap is usually 1.5 to 2.2x the amount borrowed, paid back over the length of the loan (usually 3-5 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 20x (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 was founded in 2010 by a group of entrepreneurs and venture capitalists who believed there was a better way to fund growing technology companies.

Our revenue-based loans are structured so that we win when you win. Our return depends on your company’s performance, meaning it’s in our best interest to work with you to help you grow. We can be involved as much or as little as you like. Together with our community of 150+ tech entrepreneurs and experts, we can:

  • Talk to you about your business strategy;
  • Connect you to our network of investors; and
  • Give you access to special services and offers from our partners.

It’s why, having completed more than 150 financings with over 110 companies, we're the leading provider of Revenue-Based Financing for growing technology companies.

“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

About the application process

We strive to make the process as light as possible – no long applications or waiting weeks or months for answers. Our goal is to get you funded in 2-4 weeks so you can focus on your business.

Company Snapshot

To get things started, fill out our secure, online form to give us a quick snapshot of your business.

Get to know each other

We’ll contact you to get more detailed financial information about your business. Our Investment Team will have a short phone call with you to learn more about you and answer any questions you may have.

Close the deal!

By now we should both know if Revenue-Based Financing is a good fit for your company. If it is, we’ll send you a term sheet and get you the funding you need to take your business to the next level.

Apply now ›