One common strategy for raising capital for a growing company is raising equity. Equity requires owners to give away a portion of the business in exchange for the capital infusion. An alternative to raising equity, revenue based financing or RBF allows a company to maintain control of the company without giving away a portion of the business. Also called revenue based funding, RBF is a financing alternative that allow owners and managers to maintain control of their company and preserve equity while delivering financing for their business.
The alternative of equity, revenue based funding is a possible financing alternative when a company has existing revenues in excess of $4 Million dollars per year and has a capital requirement from $1 Million to $10 Million dollars. In return for the immediate injection of capital into a business, the company agrees to pay back the investment according to a percentage of ongoing gross revenue over a set period of time. Requiring less due-diligence turn arounds, typical revenue based financing projects can see capital infusion in less than 30 days. Payments to the investment increase or decrease according to the monthly revenue of the business allowing for greater flexibility during slow periods of a businesses cycle.
Lantern Capital Advisors succeeds in quickly finding appropriate growth capital financing solutions that limit ownership dilution for our clients. We use a proven methodology in order to source capital and negotiate financing terms that satisfy both our clients and financial institutions. There is no one out there that does what we do, that is as successful as we are at raising capital for our clients, or that can raise capital for less. Over half of Lantern's growth capital raising engagements involve financing amounts over $10 million. We take no equity or warrant positions in our clients.
Lantern Capital Advisors raises both debt and equity on behalf of our clients. Our ultimate objective is to ensure that our clients don’t give up control of their business to outside investors in order to support growth. We help our clients transform their business to high growth enterprises with high multiple valuations. We are repeatedly selected by our clients to work for them again, because they trust that our insight and value for raising capital, and corporate financial consulting differentiate us from our competition.
- Strong Relationships
- Repeat Clients
- Deal Negotiation
- Hourly Based Vs. Broker or Investment Banking Formula for raising capital