Flexible Funding for Startup businesses

Opportunities fly by like shooting stars in today's world. Trends change swiftly as well. So, the secret to commercial success is agility. You don't want to spot an opportunity early but be the last one to take advantage of it because of a lack of funds. If you want to keep complete control of your business you should look for business loans for startups in India. There are a lot of small business investors looking for potential startups with unique solutions to invest in. There are several platforms that allow you to get funds for your startup through investors without equity dilution. Revenue-based finance provides speedy funding in this regard. RBF is accessible in 3-4 days, as opposed to bank loans, which may take weeks or months to be approved. Klub, for instance, provides you with a soft sanction in as little as 48 hours.

Klub is one of those platforms which acts as a bridge between investors and companies looking for investment opportunities. It allows funding through various sources like NBFCs, lending institutions, Patron network and their own CAT-II AIF SEBI registered debt fund. The funds can vary from 5 lakhs and can go upto INR 30 crores depending on the business size and recurring revenue that a startup is making. Klub makes funding for startup businesses much easier through their tech and data platform resulting in a smooth transaction Flexible repayments, no personal guarantees, recurring rounds of funds make Klub stand out from the crowd. Startups can obtain revenue-based funding for business start-up without pledging any collateral or security.

Additionally, founders continue to own and control the company, including all management and financial decisions. Loans have requirements for repayments that must be met. You have set timeframes by which you must pay back specific portions of money. They limit the capital you may spend on other growing aspects of your company. Through both good and bad times, the same weight pulls down the prospects of your business in the short & long term.

Why Revenue Based Financing:

Greatest benefit that comes from revenue based financing is equity free funding, meaning you get to keep the full control of your business and the invesṭors don’t interfere in the decision making or take any role in the board. Repayments are based on the revenue you are creating each month by pledging to pay a percentage of it.

There are tons of investors for business looking out for investing opportunities with startup investment platforms who are collaborating with several institutions and individuals and aligning them with the companies looking out for investment. If your firm is successful, angel and venture capital investment are the most expensive sources of capital since they come with 10X–20X return expectations. VCs overfund businesses to the point of self-destruction as part of their "growth at all costs" strategy. Because Revenue Based Financing uses a flexible repayment structure, rewards to investors rise as the firm expands more quickly. As a consequence, increasing income for the business is a shared objective of both the entrepreneur and the investor. VCs are eager for the firm to "exit," or create a sale of the business, because they take on ownership in the company. Founders are free to run their businesses for as long as they desire since RBF investors do not demand an exit because the investment is returned over time.

Money flowed into Indian startups in 2021 like never before resulting in USD 38 billion raised across the whole year. Startup business funding is soaring every quarter owing to unique ideas blooming up. There is huge potential for investors to invest in high growth startups to reap rich dividends in the short term through revenue based financing.