Revenue-Based Financing

A newer form of financing your business without dilution, loss of control, interest, or fixed repayment timeframe

For e-Commerce merchants raising capital, the market has been strongly dominated by venture capital followed by bank loans debts structures. Although other industries have been benefiting from alternatives such as Revenue-Based Financing, e-Commerce merchants have been left behind. Nevertheless, there has been a few suggestions about Revenue-Based Financing as a much better fit for other verticals of late. We at Lentvio therefore is pioneering Revenue-Based Financing for e-Commerce merchants in Germany.

Revenue-Based Financing is perfect for e-Commerce businesses since it helps solve the cash flow bottleneck. e-Commerce businesses always require more funds than available which is caused by increasing suppliers. The main problem is faced when spending for marketing and inventory acquisition.

As a vehicle to solve the challenge, Lentvio is proposing growth capital to spend on maketing and acquire inventory when e-Commerce businesses experience increasing demand from customers. The model best suit the seasonality aspect of e-Commerce businesses. With Revenue-Based Financing, merchants make payments based on a percentage (%) of the period sales. In this case, Lentvio has opted for 10% on daily sales depending on the generated business analytics. Repayment continues until the principal amount acquired plus the single fee (6 - 10%) are fully paid. 

The benefits of using Revenue-Based Financing help relief merchants experiencing cash flow shortage. The model benefits merchants to have access to large cash injections fast. Traditionally, applicants will receive funding in a couple of weeks. But with Lentvio, we unedrstand the need of liquidity. We therefore have structured our model to service funding merchants within a short period of time (max. 48 hours). The businesses will neither loss ownership through dilution nor require collateral. 

Lentvio funding requirements

Online presence

We provide growth capital to businesses which sell products or services online.

Trading duration

We prefer to merchants who have a historical record in business for no less than 6 months.

Monthly revenue

We prefer businesses with generate oe have earnings of not less than EUR 10,000 monthly.

How funding works with Lentvio

Apply for funding

After connections of accounts, we analyze the data of merchants to generate a toilored offer.  Within minutes, your data will be used to generate all necessary analytics for the funding underwriting process.

Select an offer

Once a decision has been be made, generated offers are presented on dashboards. Merchants have the option to select an offer if best suits their business or might request a customized solution.

Repay as you earn

Repayment is aligned to the revenue generated from sales periodically. A fixed percentage of 10% is deducted from revenue until the principal and single fee (6 - 10%) is paid in full. A scenario with flexibility and fairness.

 

Join the Beta.
Work with a skillfull team.

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