{"id":7409,"date":"2021-09-06T13:11:29","date_gmt":"2021-09-06T13:11:29","guid":{"rendered":"https:\/\/kredx.com\/blog\/?p=7409"},"modified":"2023-10-26T05:51:05","modified_gmt":"2023-10-26T05:51:05","slug":"manage-your-seasonal-demand-with-revenue-based-financing","status":"publish","type":"post","link":"https:\/\/www.kredx.com\/blog\/manage-your-seasonal-demand-with-revenue-based-financing\/","title":{"rendered":"Manage Your Seasonal Demand With Revenue Based Financing"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Festive seasons bring greater sales and revenue for almost every consumer-focused business (D2C, B2C, or service providers), regardless of Micro, Small or Medium Enterprises. This, in turn, also leads to the growth of other SMBs, supplying raw materials and services to such businesses. However, it is also when most entrepreneurs struggle to easily avail funds to solve their cash inflow and outflow irregularity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Factors such as high demand for products, limited access to financial resources, and existing supplier chain dues are among the few reasons that often prevents businesses from tapping into the surging market. Subsequently, this leads to a situation where it discourages companies from expanding their production capacity and growing their business operations in general.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fortunately, with the availability of funding options such as RBF, entrepreneurs can now access capital from KredX without adding to their existing debt!<\/span><\/p>\n<h2><b>Revenue Based Financing (RBF) \u2013 A Brief Introduction<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">It is a funding avenue where you can leverage your firm&#8217;s estimated gross revenue and gain access to capital in a short time. In a general sense, RBF is an alternative to debt financing with a profit-share repayment structure.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">How?<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This funding solution is computed as per a business&#8217;s growing revenue &#8211; annually, quarterly or monthly. The best thing about such financing is:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You can easily avail collateral-free growth capital<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You do not have to pay a fixed EMI<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unlike equity financing, you do not have to give up a part of your business ownership<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">You get to repay the credit you opted for in up to 12 months<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Collectively, these pointers work out best for business owners who want to access funding without increasing their current or fixed liabilities. Also, with the festive season knocking at the door, now is the best time to seek additional capital and prepare to shoulder the seasonal demand.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Companies with monthly revenue of Rs. 10 lakh can approach KredX to access growth capital to meet festive season-induced demands easily. With the funds available, you can upgrade your capacity, expand to new geographies, purchase raw materials in bulk, and hire additional talent to meet the increase in demand.\u00a0<\/span><\/p>\n<h2><b>How Does Revenue-Based Financing Work?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">To avail RBF, you need to follow these simple steps:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sign up on <\/span><a href=\"https:\/\/www.kredx.com\/growth-capital\/revenue-based-financing?utm_source=organic&amp;utm_medium=blog&amp;utm_campaign=RBF\"><span style=\"font-weight: 400;\">KredX<\/span><\/a><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Upload the necessary documents online and get them verified<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Post verification, you get onboarded on the KredX platform<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The credit team will analyse your <a href=\"https:\/\/kredx.com\/blog\/how-to-use-your-receivables-to-manage-cash-flow\/\" target=\"_blank\" rel=\"noopener\">cash flow<\/a> pattern for the last 12 months<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After a thorough analysis of your revenue statement, the sanctioned amount will be disbursed to you<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Note that a fixed percentage of your future earnings will be paid to the financier until the borrowed amount is repaid. Usually, surplus revenue helps to pay off the outstanding amount much faster.\u00a0<\/span><\/p>\n<h3><b>Perks Of Choosing Revenue-Based Financing From KredX!<\/b><\/h3>\n<p><i><span style=\"font-weight: 400;\">Wondering if you can trust this funding option to tide you through the festive season? <\/span><\/i><span style=\"font-weight: 400;\">Check out these amazing perks of RBF with KredX!<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Effective Funding Option: <\/b><span style=\"font-weight: 400;\">The quick onboarding and digital processing help access the required fund at the earliest, allowing you to take up new orders without any hiccups.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Flexible Repayment Amount: <\/b><span style=\"font-weight: 400;\">The repayment amount depends on the agreed percentage and also on the generated revenue. Typically, when your business generates higher revenue, you can repay the sum much faster.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Secured And Cost-Effective: <\/b><span style=\"font-weight: 400;\">You do not need to provide collateral to access funds under <a href=\"https:\/\/www.kredx.com\/growth-capital\/revenue-based-financing\">revenue-based financing<\/a>. All you need to do is leverage your estimated and past earnings to access funds.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Customisable Repayment Structure: <\/b><span style=\"font-weight: 400;\">As per the agreement between you and your financier, you can settle on a flexible repayment structure, which will help you pay off the money as per convenience.<\/span><\/li>\n<\/ul>\n<h3><b>Bottom Line<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Further, when you move ahead with RBF as a funding option through KredX, you can experience hassle-free digital processing, 100% transparency, and quick access to funds. All these perks make a good case for why you should consider revenue-based financing to fund your seasonal demand. That said, factor in your seasonal demand and chalk out your revenue plan to keep the entire process as smooth as possible.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Festive seasons bring greater sales and revenue for almost every consumer-focused business (D2C, B2C, or service providers), regardless of Micro, Small or Medium Enterprises. This, in turn, also leads to the growth of other SMBs, supplying raw materials and services to such businesses. However, it is also when most entrepreneurs struggle to easily avail funds [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":7413,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[925],"tags":[1014,159,188,1013,76,1006,1015,618],"class_list":["post-7409","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-revenue-based-financing","tag-business-finance","tag-business-growth","tag-finance","tag-growth-capital","tag-kredx","tag-rbf","tag-rbf-loans","tag-revenue-based-financing"],"_links":{"self":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7409","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/comments?post=7409"}],"version-history":[{"count":1,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7409\/revisions"}],"predecessor-version":[{"id":13562,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/posts\/7409\/revisions\/13562"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media\/7413"}],"wp:attachment":[{"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/media?parent=7409"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/categories?post=7409"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kredx.com\/blog\/wp-json\/wp\/v2\/tags?post=7409"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}