Small Businesses Averaging $250k in Funding with Revenue-Based Financing from Lighter Capital
SEATTLE – April 13, 2015 – Lighter Capital, a leading provider of Revenue-Based Financing, today announced that its average loan size has grown to $250,000 – an increase of $50,000 over the prior year. The company attributes the increase in loan size to the real need for capital to support the longer-term growth strategies of small technology businesses that is not currently met by traditional equity and debt providers.
“Small, established technology businesses are seeking access to more meaningful amounts of capital that can be used to fund their activity further into the future,” said BJ Lackland, CEO of Lighter Capital. “Revenue- Based Financing is a means for these companies to secure capital as they need it – enabling them to grow organically, without hindering their ability to invest in their businesses. This flexibility is something small businesses aren’t easily able to get from a bank or other debt such as merchant cash advance.”
Through its use of innovative technology, Lighter Capital is able to forecast the long-term future performance of a small business by integrating accounting, banking and CRM data to get a full, 360-degree view of the company. By crunching key sales, financial and customer data, Lighter Capital’s technology improves the underwriting process and also borrower monitoring, predicting financial instability months before it shows up in financial statements.
“Our less than 1% default rate shows that our approach to underwriting and credit analysis works,” Lackland said. “And the fact that entrepreneurs are accessing more significant amounts of capital – often in multiple tranches – indicates that it’s a healthy source of repeatable financing. We find that our approach to lending not only creates more sustainable companies, it also decreases the default rate.”
Since it launched in 2010, Lighter Capital has funded almost 70 companies located around the United States, with an average of 1.6 loans per customer. The company is seeing strong demand from software and services companies focused on developing for the Software-as-a-Service economy. Companies that have recently been funded by Lighter Capital include Good Done Great ($500,000), Quick Left, ($500,000), and Building Energy, Inc. ($300,000).
“Banks often won’t lend to companies without significant track records and physical assets, while equity investors are looking for a very few breakout investments,” Lackland said. “We’re addressing this gap in funding for small businesses that want true growth capital.”
For more information about Lighter Capital and Revenue-Based Financing, visit www.lightercapital.com. Additionally, the company will be present at the LendIt USA 2015 conference (booth #608) in New York City (April 13- 15). CEO BJ Lackland is featured in the Small Business Lending Innovators panel at 10am Tuesday 14th April.
Lighter Capital is the pioneering leader in founder-friendly, non-dilutive financing. Since 2010, we have provided hundreds of millions of dollars in over 1,000 rounds of financing to U.S., Canadian, and Australian tech companies. Founders achieve success on their terms with Lighter’s tech-enabled financing which has no fees and does not require the company to give up equity. The application process takes minutes and requires no pitch deck. Beyond financing, Lighter’s “more than money” benefits provide founders access to invaluable connections within the Lighter Capital Community, resources, and product discount opportunities. Learn more and apply at https://www.lightercapital.com.
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