Today Tom delivers on his promise to dig into revenue-based financing and who it works for best. It’s important to understand that revenue-based financing investors are essentially lenders. This is not “I love you money.”
Revenue-based financing investor will first consider revenue. They will want to know the prospect for having future, consistent recurring revenue. That’s called MMR: monthly recurring revenue. So, if you have a strong showing in that area then you would be an excellent candidate for revenue-based financing.
Examples of these types of companies are membership services like Netflix, Square Space, a paid e-mail through Google, etc. Tom continues to teach us that there is a positive correlation between the amount of the loan and the amount of the MMR.
Tom wraps up today’s great episode with a New Year’s toast! May you have a happy new year!
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