What makes Klub’s Revenue Based Financing offering unique?

This is the second in our five blog series explaining what Revenue Based Financing is, how does it compare with other forms of funding available to companies, and more…

With a better understanding of how revenue based financing works in Part 1 here, we’re now discussing what makes our RBF products unique.

We aim to be founder-friendly capital. Here’s how our offerings help us achieve the same:

Flexible, skin-in-the-game financing: For a growing business, revenues vary from month to month, with product launches, marketing pushes, and inventory/collection cycles. Klub RBF ensures that monthly repayments are not a fixed burden, but variable. To recap, our repayments are a fixed percentage of monthly revenues. If revenues are lower than expected, repayments reduce. Additionally, there is a built-in grace period to make up Klub returns, if the revenues remain slow for the entire duration of the repayment period.

Transparent pricing: Klub understands that business owners need to be able to keep their capital cost predictable, so we maintain complete transparency in our pricing. Our financing fees are simple to understand with founders being completely aware of the total amount to be repaid and are never surprised by hidden charges.

Better repayment structures: With Klub RBF, repayments grow as your revenues grow, giving you more breathing space in the early months. We understand that it takes some time for the returns from new CAPEX, or inventory purchases or digital marketing spends to reflect in revenue realization. We offer brands this flexibility, with higher payments coming in the later months versus earlier.

No equity dilution: We understand that entrepreneurs need a mix of capital sources to balance out their investments and spends. We believe that while certain investments are better suited to equity capital, with fixed RoI spends like digital marketing, inventory, or CAPEX, non-dilutive capital like RBF should be the go-to strategy. Revenue based financing is non-dilutive for founder equity. You continue to have full control and steer your business your way.

Seamless process: We are a team of fintech, investment banking, venture capital, and technology veterans who bring an entrepreneur-first mindset to give you a good financing experience. We understand that seeking financing can be daunting. At the same time, all financing providers (including us!) need information from the company for our risk models to do their job. We balance founder-friendliness with stringent risk assessment by having in-house brand partnership specialists who handhold you through the entire application process making it seamless for founders.

Community and revenue opportunities: Klub’s patron network is a community of affluent investors who contribute to your revenue and brand-building which is a powerful audience for consumer brands to tap. We have seen multiple examples of patrons swinging their share of wallets to brands they have funded and now, love!

So as you can see, we are focused on building long-term partnerships with founders, and grow with them and not on short-term transactions.

Thanks for reading. Next in this series, we’ll do a transparent comparison on how Klub RBF compares to other forms of financing so you can choose the best option for your company, so stay tuned.

As a company seeking financing, if you’d like to explore more, reach out to us at brands@klubworks.com. For more information, visit https://klubworks.com.