If you are a fledgling start up, looking for some good financing options, have a look at the following options:
1) Friends and Family
2) Contests/Prizes/Accelerator Programs
3) Government Grants
4) Customer Financing
5) Vendor Financing
6) Convertible Debt
7) Preferred Stock
8 ) Venture Debt
9) Capital Equipment Loans & Leases
10) Bridge Loans
11) Working Capital Financing
However, there is one conspicuous absence from the list is Revenue Based Financing (RBF) . A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenues to the investor.
Revenue-based loans are, by nature, most appropriate for companies already generating revenues but without hard assets typically required to get bank loans. It’s especially applicable for companies that have lumpy, seasonal, or hard to predict revenues.