Revenue-Based Financing or Term Loan? Choose With Confidence

Choosing the wrong debt product can strangle cash or dilute future equity. Use this plain-English flow to decide.

Quick Decision Flow

1. Monthly revenue ≥ AED 150 k?
   • No → term loan usually cheaper.
   • Yes → go to step 2.
2. Gross margin ≥ 40 %?
   • No → revenue-share cushions thin margins.
   • Yes → move to step 3.
3. Seasonality swings > 35 %?
   • Yes → revenue-based financing flexes with slow months.
   • No → fixed-payment term loan fits.

Borrower Tips

• Always model worst-case sales before signing a revenue-share deal.
• Check if your term loan has pre-payment penalties—handy if a VC round closes early.

Keywords: revenue-based financing UAE, term loan comparison, SME debt options, funding decision tree
Hashtags: #KlubAI #RevenueShare #TermLoan #FundingStrategy #SMEDebt

Disclaimer: Financing terms vary; run numbers with your lender before committing.