You can fuel your working capital requirements today by borrowing from tomorrow. With an Espresso Capital revenue-based loan, you don’t have to give a personal guarantee, put up your house as collateral, lose management control or dilute your company ownership with equity.
When the SR&ED or Digital Media credit programs aren’t working for you and you’re growing your revenue every year, Espresso Capital’s revenue-based loans provide a third option for generating working capital.
Revenue-based financing is a new form of working capital funding that is essentially a loan based on predictable or recurring revenues.
Typically, this loan would be useful for businesses that use the software as a service (SaaS) model or for businesses that expect to receive receivables in the future but need some extra financing today.
There are many small to medium-size technology businesses in this category that simply need a loan to tide them over a fallow period or that require cash to finance a project or develop a new product.
But until now their options have been few: the banks won’t lend unless you put up property as collateral; some entrepreneurs are very averse to dilution and loss of control; and venture capital and angel money, if you can get it, is far too dilutive and is, in the long run, the most expensive financing.
Instead, with a revenue-based loan, you don’t have to sell most of your soul to a banker or venture capitalist to get through the periodic soft spots that are a common feature of entrepreneurship. You don’t have to cut staff or undertake other actions that will stifle rapid growth.
You can concentrate on growing your technology business. That’s what’s really important.