In recent years, we have seen a lot of different types of financing options become available for early and growing businesses. These options can be very helpful in terms of helping these businesses grow. As the startup ecosystem has grown more mature, businesses have started to appreciate these options more. And instead of relying so much on equity funding, they are using these other options more often.
SBF is a type of alternative financing that lets you use your regular revenue from customers to get money upfront. This type of financing is good for companies that charge their customers regularly, for example, every month or every quarter.
SBF helps companies in the software-as-a-service, service, and direct-to-consumer subscription sectors. This includes companies that provide over-the-top platforms or education technology services.
How it works
There are a few simple steps companies can take to get growth capital from Recur Club for their growth and expansion goals.As a company, you simply need to:
- Sign up on Recur Club
- Connect your billing/invoicing manager to the platform
- You will have to wait just 48 hours while Recur Club’s AI/ML (artificial intelligence and machine learning) backed underwriting engine decides how much money you can borrow.
- After 48 hours, you can easily withdraw the growth capital you need and use it towards your company’s goals.
Benefits of Subscription based Financing
Subscription-based financing (SBF) provides quick funds, flexibility, and ease of use. It also has many other benefits, such as complementing venture capital funding and enabling companies to raise growth capital without diluting their ownership. SBF does not have any financial or operational covenants, personal guarantees, or collaterals.
No Equity Dilution
When you get venture capital funding, you have to give up a percentage of your company ownership to the investor. This can be a good thing in the short term, but if it goes on for too long or if too many investors get involved, you can end up losing a lot of control over your company and what happens with it. This can sometimes lead to problems because the founders’ goals might not always match up with what the investors want.
Quicker than other financing Options
SBF can be easier to start than other methods of financing. You can get the money in a few days if you give us billing and invoicing information. At Recur Club, we understand that it is important for you to have access to money when you need it. We offer a capital line that you can withdraw from with just a few clicks. We want to help you reach your goals and provide peace of mind.
More control over your cash flow
SBF financing moves quickly, so you have more control over your money. We understand that you have goals for your company and we do not interfere with how you want to use the money we provide.
This is different from traditional VC funding, where investors often have a say in what you do next with your company. At Recur Club, we believe in giving you real capital to help your business grow, with no strings attached on how you choose to use it.
Flexible funding that grows with you
Unexpected expenses can come up when you’re running a business. It’s important to have money saved up so you can pay for them. If you don’t have cash flow, your company might not be able to grow or take advantage of opportunities. That’s why at Recur Club, we offer a trade limit to help you get the funds you need. We want to make sure your goals are reached, no matter what.
No restrictive covenants, liens or charges
With Recur Club, you don’t have to worry about any restrictive covenants, liens, or hidden charges. We believe in being fully transparent with our clients in all areas of our service. The funds we provide are completely yours to invest and use as you wish. We also don’t have any onboarding fees or commitment fees. There is only one fee when contracts are traded and capital is withdrawn.
Complements equity financing
Subscription-based financing helps companies raise money while minimizing the amount of equity that is given up. This type of financing also allows for a company to trade future revenue streams, which can minimize the amount of equity given up in each round. This can have a significant impact on a company’s ownership over time.
Recur Club focuses on helping business owners like you and your vision by providing non-dilutive and flexible funding, right when you need it. The availability of quick cash infusions and the option of recurring fund withdrawal are some of the ways we work towards being a dependable source of funds for you as a founder.