Kanmu launches “Quick Funding” for Revenue-Based Financing (RBF)

Kanmu, provider of “Bundle Card,” a Visa prepaid card that anyone can instantly issue from an app, announced the launch of a new service “Quick Funding” utilizing RBF, a third funding method that is neither equity nor debt.

What is “Quick Funding”?

It’s a funding service for small and medium-sized enterprises that provides immediately available funds on the basis of future sales. The process from application to funding is completed online, with AI assessment and online interviews enabling funding completion in as little as 7 business days. This allows for faster and easier fundraising compared to traditional bank loans. No financial statements, collateral, or guarantors are required, making it “quick” and convenient both in terms of speed and psychological ease.

Why is “Quick Funding” possible?

Traditional financial institution loan assessments typically review a company’s financial information, requiring submission of various documents such as financial statements and business plans. Kanmu focused on the preparation time and effort involved. By building their own AI-powered assessment system for cash flow and future sales, they have made it possible to conduct preliminary assessments without document submission. Once the preliminary assessment is complete, “Quick Funding” presents the purchase terms, and the only document required for the main application is the representative’s identification.

While conventional methods require financial and accounting information such as full financial statements, monthly trial balances, and journals, “Quick Funding” eliminates the need for these submissions. Instead, it conducts highly accurate assessments using our proprietary AI evaluation. Additionally, the maximum purchase fee rate is set at 7.5%, the lowest in the industry.

Background of “Quick Funding” provision

With the full-scale repayment of COVID-era zero-interest loans beginning last year, many companies, especially those with delayed performance recovery, are feeling anxious about repayment. In this market situation, it is expected that the number of companies unable to receive necessary funding will increase, particularly those in the early stages of business when operating with a loss, or those with business models lacking assets for collateral.

Among these companies, there are issues of inability to make appropriate investments or secure sufficient working capital, resulting in lost economic opportunities.

Through the provision of “Quick Funding,” Kanmu aims to solve these issues by conducting assessments based on future cash flow and sales forecasts. They will expand their service to enable companies that have previously given up on fundraising to secure necessary amounts at necessary times.

For another RBF company, please see our article “Revenue-based finance company Yoii completes JPY 800m Series A”

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