The UKs first flexible revenue loans taking off



09 July 2015

Crowd2Fund have recently launched the ‘Revenue Loan’, a completely unique type of lending tailored for early stage or seasonal businesses. Businesses repay the loan as a percentage of company revenue, which means they are not tied to fixed monthly repayments and gives them more agility to grow quicker due to more manageable cash flow.

The revenue loan is also available to earlier stage companies who may not qualify for bank lending or not wish to sell company equity. Companies must have been profitable for at least six months in order to qualify for a revenue loan.

Revenue lending is attractive for investors because they achieve higher returns, normally around 10% as a result of providing this flexibility to businesses instead of lending to riskier businesses. Investors receive a minimum of 10% apr as a minimum every month. Revenue loans can be secured and guaranteed the same as any other loan.

Crowd2Fund completed the UK’s first ever revenue loan for the Glen Rothay Hotel, established in 1624 and based in the Lake District. The Glen Rothay Hotel was unable to get a bank loan due to a technicality, even though they are clearly a credit worthy business. Due to the seasonal nature of the business, the revenue loan was perfect for them as it allowed them to undergo refurbishment works during low season. Six investors funded the £40k loan via Crowd2Fund with Glen Rothay expecting to repay the loan early as revenue has been higher than anticipated following the upgrade.

Beef Digital were the UK’s second ever revenue loan, which recently closed successfully after raising £50k to fund the expansion of their digital agency. Matt, the founder of the agency said:

“Traditional bank funding was not able to provide us with the support that we need. As well as allowing us access to finance, Crowd2Fund have provided us with marketing and business development resources which have allowed us to raise more awareness of who Beef Digital are and what we are doing.”

Crowd2Fund have started to attract more mainstream brands who are applying for this type of flexible finance. RuRoc is a well established ski brand providing safety crash helmets for the snow sports sector and turning over more than £1m per year. RuRoc have approached Crowd2Fund for a revenue loan which will be launching on the platform over the next couple of weeks.

Revenue loans are expected to accelerate in growth exponentially within the UK due to the large number of newly profitable companies who are now seeking a loan rather than being forced to sell company equity.

For more information about Revenue loans please visit or contact Chris Hancock;

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