article thumbnail

Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Factoring, MCAs and receivables financing are all short-term oriented with pay-back periods measured in weeks, months or quarters, while RBI is generally measured in years. the amount of the financing (this multiple is called the “cap”). At maturity, which is typically 3 to 5 years, any unpaid amount of the cap is due.

Revenue 60
article thumbnail

The Basics of Small Business Loans [WEBINAR]

Up and Running

For those businesses that are already up and running, after that startup phase, you may have a working capital need, a permanent need that your customers pay you, let’s say in 90 days, any invoice come for 90 days for a product you sell but your suppliers need to get paid in 30 days and you have a 60 day gap. We’ve got references on.