The RevTek Process for Funding Recurring Revenue
Growing companies need capital to fuel their growth.
And there are two primary options; debt and equity.
But, the choices and processes are complicated.
Therefore, RevTek Capital makes it simple.
Our experienced professionals devote the time to
understanding each company's unique circumstances
and opportunities. The result is a creative funding
solution accelerating the growth of their clients.
An Easy Process
Provide Us With a Business Overview
To get started, give us a call and share an overview of your business.
Collaborate With Us
We’ll collaborate to get more detailed financial information. Our investment team will have a short phone call with you to learn more about you and answer any questions you may have.
Get Ready for Your Funding
By now we should both know if our financing solution 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.
Why choose RevTek financing?
Get the funding you need.
Fast.
Our funding process is quick and simple. In our process, your company can receive up to $15MM in funding in as little as 4 weeks. After we develop a working relationship, we can provide follow-on rounds of capital in as little as 5 business days and up to $15M for qualifying companies.
Retain ownership and control
of your business.
When accessing funding with RevTek, you won’t be asked to provide us with a board seat. It’s your company and our funding helps you grow your company for the future- so you can retain control now.
Payments not based on
monthly recurring revenue
No matter how high your revenue
increases, our affordable monthly
payments always stay the same.
Other funding sources restrict your
company's growth while RevTek
accelerates it. We fund your
business as you grow, providing
additional funds as you launch into
further success.
About RevTek Funding
How much can you borrow?
5-6 months of recurring revenue or MRR or 40-50% of ARR
Capital for growth
We fund sales and marketing, product development, capital equipment, software development, and other growth strategies.
Funding when you need it.
Get access to more funding as you grow. Only pay for what you use.
Retain control
We will never require a board seat or tell you who to sell to.
Specializing in growth companies
Saas, Software, loT, MSPs, Cyber Security Services,
Digital Media, and companies with recurring revenue
or stable recurring contracts.
What you need to qualify
Business: Predictable Recurring Revenue
Revenue: $400,000 per month.
Gross margins: at least 50%
Profitability: not required
SaaS Metrics: Minimal churn and net revenue retention
Product: Proven-market fit
More flexible than the bank
We lend more to early-stage growth companies
Interest rates can be lower for bank loans than for revenue-based financing, but beyond small lines of credit, banks rarely lend enough for early-stage growth.
Bank loans contain complex covenants that can be difficult to navigate.
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 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 1.3–1.8x 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 10–20x the amount they invest in you—or more.
And initial legal fees and expenses can easily reach $30,000.
What is it like working with RevTek?
We succeed when you succeed
RevTek Captial was founded in 2014 by a group of entrepreneurs and banking experts who believed there was a better way to fund growing companies. Our funding is structured so 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 tech entrepreneurs and experts, we can.
