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Is Revenue Based Finance Right for You?

Some of my clients have been asking me what Revenue Based Finance (RBF) means and if it is advisable for them to obtain such finance. “After all, money is just money irrespective of the label attached to it”, they say. No, that is not entirely true. Not all types of loans are good for your business. Just like how a doctor prescribes drugs for a type of illness, a lender matches funding to a borrowing cause [Tips for borrowing causes parts 1 & 2]*. The reason is to ensure that funding is used wisely for the intended purpose to enable the borrower achieve the intended goal(s).

Revenue Based Finance is a type of financing structure (commonly known as investment) aimed at financing future subscription revenue in return for a percentage of ongoing gross revenues until the finance (investment), plus a multiple is repaid to the investor. This type of financing is appropriate for fast growing companies that generate high monthly recurring revenues, such as SaaS (Software as a Service) companies. These companies may not qualify for traditional bank loans due to lack of assets to collateralize the loans. “This type of financing is excellent for early-stage companies with high revenue growth in need of additional funding to finance growth”, says Daniel Landver, CEO of Bloomloan, a California based RBF /investor lender.

Monthly loan payment is based on a percentage share of the client’s monthly gross revenue, similar to royalty payments. If revenues drop, so do payments, and vice versa. Maturity of the funding is tied to the time when a predefined total repayment cap is reached, usually 6 to 60 months, depending on a client’s needs. Some RBF investors offer modified short term financing, 3 to 12 months with fixed monthly payments and fixed maturity. The key qualifying requirements for a potential client are generation of monthly recurring revenue (MRR), high gross margin, low customer/revenue churn rate and cost of acquiring a customer, just to mention a few.

Normally, RBF investors/ lenders do not ask for collateral or personal guarantees. They rely on the financial performance of the borrowers, instead. However, there are instances when personal guarantees may be required, particularly if the borrowing company is a start-up or financially weak. Some RBF investors may require to register a 1st lien on the borrowing company’s assets such as, patents, domain names and trademarks. This is usually done to ensure that the debt is categorized as a senior debt in case of foreclosure.

The borrower benefits from easy access to capital without diluting equity or giving up personal or business assets for collateral. The finance is pricy but it is worth it given the benefits and the circumstances of the borrower.

Best Annuity Rates For A Better Financed Future

Best annuity rates provide you with a multiple guarantees and the best annuities. After a specific period, you will need all your stream payments. Best annuity rates help you get the best pension in the market. By using best annuity rates, your money will be safe and we promise to offer what you have paid for. There are several reasons why to choose best annuity. Best annuity searches the entire market to offer you the best annuities. The competitive annuity offer a free service without charging you, unlike others the annuity will first check if you qualify the enhanced rates to guide you on decision making. Best annuity charges have a fast application process and an outstanding customer service.

If you are a pension saver, you have to think carefully about your allowance options. Many people who are not retired can loose all or part of their private pension income if they die. It is then important to choose the best annuity rates when looking for a pension allowance.

It is also important to have a financial adviser, who will guide you to choose the best allowance rates depending on your personal circumstances. Many retirees are missing a better retirement’s income because of an illogical approach to shopping around for the best annuities.

However, with the best annuity payments you can get a state forecast. It will help you know how much you are supposed to get in states pension benefits. You can therefore calculate how much you will need from your best annuity charges each month. The best rates help you to get a better retirement annuity. It provides the best life annuity, investment allowance, protected rights income, guaranteed income and enhanced pension. Securing a comfortable retirement is the dream to for all employees.

The best calculator helps you to see if you can get the rates than your provider is giving you. When choosing the type of unity you need, you need to know all the options available. Annuity calculator will help you to work out on this in order to make the right decisions. Annuity calculator will also help you to see the how much difference the options make to the income. The best rates vary depending on which option you have chosen for your pension.

If your partner suffers from a medical condition, you may qualify for the enhanced income, which can make a difference in your retirement income. An enhanced unity gives you high rates because annuity providers believe you have a shorter life expectancy. An enhanced unity rate depends on your health complications. For example, serious conditions like cancer or heart disease can give you high income rates compare to heavy weight. Best annuity rates help to choose the right enhanced annuity.

Best annuity rates will help you to calculate your guarantee annuity. Guarantee annuity is where you give your pension to an insurance company and get a guaranteed income for a certain amount. One of the benefits of getting a guarantee annuity is that, you will have income for the let of your life. Try best annuity rates and you will not be disappointed.

Annuity Rates, For A Well Financed Future

Annuity is an equal payment, which a person has to give out and in return, gets some payments at given intervals. It can be monthly or yearly. The payments can be made in a contingent or fixed period. Annuity is generally associated with retirement because, a high number of these people seek for the annuity services. The annuity rates therefore provide you with a multiple of annuity guarantees with a high interest rate in the end. This is one of the best ways of planning for your financial future.

In order for you to get the best annuity rates, you are required to start planning early. Do not wait until the peak of your career for you to start looking for an annuity. Make an elaborate research about all the types of annuities that are available. This will help you in selecting the one that first your personal interests. Annuities a requited to insurance policies. It is quite important that you go for the best provider.Get a company that is able to match your personal requirements. There are fixed annuity rates and variable annuity rates. You are needed to choose only one and then stick to it for you to see its effectiveness. Ensure that you get these services from a company that is highly recognized and has a good reputation.

The annuity rates can be tracked through different contracts such as the differed rate. This is one of the long-term retirement accounts that is destined in the improvement of your assets and provide you with an income that is steady when you have retired. An immediate annuity rate is yet another contract that you are provided with by a reputable company.The annuity begins immediately after you have deposited your money to your insurance company. The quoted rates for this immediate annuity are offered in a different format from the interest rates that are given in the differed annuity.

The annuity payment rates vary from time to time. The variation come into place depending on the amount that you have invested and the periods of time that you want to start getting your payments. For instance, you will be required to pay smaller annuity rates if you start your payments at the age of twenty. This is in regard that you will get the payments after your retirement. This may seem to be a long time but it is very effective in the end.

The annuity rates have very many benefits to an individual. For example, immediately after starting your payments, the gains that you make are taxed. You are also not limited on the amount of money that you want to contribute to the annuity. Equally, the return rate that you get from these rates is excellent. Most investors that are risk averse take annuities because of a high guarantee of a steady income. The annuity rates are one of the bets investment methods that have been forwarded. Get one today if you want to have an improved financial future.

The Best Car Insurance Rates

If your car insurance is due for renewal and you are considering buying another policy then this article will provide you with important facts that you should know about. Car insurance policies are getting increasingly expensive and you should do all that you can to reduce your costs. How much you have to pay for your car insurance is dictated by a variety of factors as they apply to you and your vehicle.

In this article we will examine coverage limits, your age, gender and marital status, your location and insuring other household members. All of these factors will have a great influence on how much you will have to pay for your policy.

Coverage limits are generally dictated by the price that you are willing to pay for your insurance. A higher level of coverage will generally result in higher premiums. The best way to find a good value policy is to comparison shop. Nowadays it is generally accepted that the best way to do this is by using a car insurance comparison website.

Your age, gender and marital status will have a great effect on the auto insurance rates that you are offered. Insurers rate drivers using a variety of criteria, if you are a young single male driver you will usually have to pay higher rates. If you are a middle-aged female married driver then your rates will be lower. Insurers calculate the best car insurance rates for you by comparing levels of risk. Those groups which are statistically more likely to be involved in an accident have to pay correspondingly higher rates.

Location plays an important part in deciding how much your premiums will cost. Drivers who live in an urban environment will usually pay more than those from a rural area. This is because drivers who live in cities and heavily populated areas are more likely to be involved in an accident, or to have their car stolen or vandalized. Insurers generally offer better rates if you’re able to demonstrate that you keep your vehicle in a garage at night. You may also be able to improve the security arrangements of your automobile by fitting an alarm, immobilizer and steering wheel lock.

Insuring other household members will have an influence on the cost of your policy and the best car insurance rates that you offered. If you have teenage family members living with you and they are added to your policy, then your costs will increase. This may still work out cheaper than if your teenage driver were to have a separate policy in their own name.

In conclusion, there are a variety of different factors which can affect your ability to be offered the best insurance rates. Some of these are coverage limits, how old you are, whether you are male or female and whether you are married or single. Your rates will also be affected by the area where you live and whether other household members are included in your policy.