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The Ultimate Funding Solution: Crowdz Recurring Revenue Financing

According to research, about 78% of small businesses fail within the first year of operation. In most cases, this failure is due to a lack of capital and market or poor cash flow management. 

It’s vital to get adequate financing to fund business operations and pay employees when launching a business. While there are numerous capital sources, most of them require you to provide some form of collateral.

If your business operates on a recurring revenue model, you don’t have to worry about debt financing or getting collateral. With solutions such as Crowdz, it’s easy to trade your unpaid invoices and contracts for upfront capital. 

Here, we explain how the recurring revenue financing option is the one-stop shop for all your monetary needs. We’ll also explore how this model works and discuss how it can transform your business.

 

Avoid Cash Flow Disruption With Crowdz Recurring Revenue Financing

One major challenge with running a business is getting enough funds to pay for operating costs. While you can fund some expenses with the money generated from the sale of products and services, it may not be enough to cover costs that need lump sum capital.

Such may include opening a new branch, marketing new products, and buying equipment. Getting a loan to finance these expenses may be an ideal solution.

Still, you will need a lot of paperwork and wait for some period for the bank to process your application. Moreover, after loan approval, you have to pay an interest rate that may be pretty high.

Crowdz launched a recurring revenue financing option to help improve cash flow in your business. We connect entrepreneurs with investors who provide capital in return for the ongoing total gross revenue. This way, you can get a lump sum amount by trading unpaid invoices and subscription contracts.

Since your expected income serves as collateral, you don’t have to worry about risking your assets. We also offer a flexible funding plan, allowing you to repay the amount over a reasonable duration. 

 

The Benefits of Crowdz Capital Solution

Using your recurring revenue as a source of capital has many benefits. First, it allows you to expand your business in a shorter duration, even with limited funds. Once you trade part of your expected income, you can use the funds to hire new employees and push products into untapped markets. 

Other benefits of Crowdz invoice financing are:

  • Investors may offer guidance on running a business
  • You can switch the invoices for churned accounts
  • You can pay with monthly or quarterly subscriptions

 

Another reason to use recurring revenue as a source of capital is that there are no financial covenants. Instead of remitting a specific amount to the investor, you only pay back the amount based on the company’s performance.

This way, you avoid the hassle of seeking other means of financing debt when business is slow.

Some entrepreneurs rely on angel investors to get the funds needed for their business. While this option helps avoid the high-interest rates associated with loans, it has significant drawbacks. If you qualify for such financing, you have to hand over some equity to the investors.

This causes you to lose a sense of ownership and control over your business. Crowdz offers a solution to help you maintain full business ownership while still getting the money you need. With our program, you can make critical business decisions based on your brand’s culture and not just profit generation.

 

How to Get Started With Crowdz

When interested in trading your recurring revenue for capital, contact Crowdz. Our financial experts will assess if you qualify by scrutinizing your subscription contracts based on the information you provide. 

They will then connect you with potential investors in an online marketplace. Here, you can advertise invoices and contracts of clients subscribed to your services.

Once various investors gauge your business and typical expenses, they will place their bids. You may then select who to work with based on the amount you need and interest rate.

Additionally, you agree on specific repayment terms that may differ depending on the amount of revenue you make. For example, if you generate a high amount of money in a particular month, the investor receives a lump sum for that period.

On the other hand, if the business is slow, you may remit a lesser amount. This feature allows you to fund all operations and avoid cash flow shortages.

By working with Crowdz, you get better rates when selling your revenue sources. Besides that, you can trade with banks on the platform and get a relatively lower interest rate. 

Since all our transactions are confidential, you don’t have to worry about other parties knowing about the traded contracts. Further, you avoid all the challenges associated with other methods of sourcing capital.

 

Sign Up to Crowdz to Turn Your Recurring Revenue Into Capital

Crowdz recurring revenue financing solution is the most reliable option for entrepreneurs that need capital. With our platform, you can get all the funds you need without having to wait for weeks or months. 

Flexible agreements also allow you to run your company with less financial strain. Get early access starting October 15, 2021 to be among the pioneer entrepreneurs to transform their businesses with Crowdz.

By Sarah Wyman

October 13, 2021

Share this article

Blog

The Ultimate Funding Solution: Crowdz Recurring Revenue Financing

According to research, about 78% of small businesses fail within the first year of operation. In most cases, this failure is due to a lack of capital and market or poor cash flow management. 

It’s vital to get adequate financing to fund business operations and pay employees when launching a business. While there are numerous capital sources, most of them require you to provide some form of collateral.

If your business operates on a recurring revenue model, you don’t have to worry about debt financing or getting collateral. With solutions such as Crowdz, it’s easy to trade your unpaid invoices and contracts for upfront capital. 

Here, we explain how the recurring revenue financing option is the one-stop shop for all your monetary needs. We’ll also explore how this model works and discuss how it can transform your business.

 

Avoid Cash Flow Disruption With Crowdz Recurring Revenue Financing

One major challenge with running a business is getting enough funds to pay for operating costs. While you can fund some expenses with the money generated from the sale of products and services, it may not be enough to cover costs that need lump sum capital.

Such may include opening a new branch, marketing new products, and buying equipment. Getting a loan to finance these expenses may be an ideal solution.

Still, you will need a lot of paperwork and wait for some period for the bank to process your application. Moreover, after loan approval, you have to pay an interest rate that may be pretty high.

Crowdz launched a recurring revenue financing option to help improve cash flow in your business. We connect entrepreneurs with investors who provide capital in return for the ongoing total gross revenue. This way, you can get a lump sum amount by trading unpaid invoices and subscription contracts.

Since your expected income serves as collateral, you don’t have to worry about risking your assets. We also offer a flexible funding plan, allowing you to repay the amount over a reasonable duration. 

 

The Benefits of Crowdz Capital Solution

Using your recurring revenue as a source of capital has many benefits. First, it allows you to expand your business in a shorter duration, even with limited funds. Once you trade part of your expected income, you can use the funds to hire new employees and push products into untapped markets. 

Other benefits of Crowdz invoice financing are:

  • Investors may offer guidance on running a business
  • You can switch the invoices for churned accounts
  • You can pay with monthly or quarterly subscriptions

 

Another reason to use recurring revenue as a source of capital is that there are no financial covenants. Instead of remitting a specific amount to the investor, you only pay back the amount based on the company’s performance.

This way, you avoid the hassle of seeking other means of financing debt when business is slow.

Some entrepreneurs rely on angel investors to get the funds needed for their business. While this option helps avoid the high-interest rates associated with loans, it has significant drawbacks. If you qualify for such financing, you have to hand over some equity to the investors.

This causes you to lose a sense of ownership and control over your business. Crowdz offers a solution to help you maintain full business ownership while still getting the money you need. With our program, you can make critical business decisions based on your brand’s culture and not just profit generation.

 

How to Get Started With Crowdz

When interested in trading your recurring revenue for capital, contact Crowdz. Our financial experts will assess if you qualify by scrutinizing your subscription contracts based on the information you provide. 

They will then connect you with potential investors in an online marketplace. Here, you can advertise invoices and contracts of clients subscribed to your services.

Once various investors gauge your business and typical expenses, they will place their bids. You may then select who to work with based on the amount you need and interest rate.

Additionally, you agree on specific repayment terms that may differ depending on the amount of revenue you make. For example, if you generate a high amount of money in a particular month, the investor receives a lump sum for that period.

On the other hand, if the business is slow, you may remit a lesser amount. This feature allows you to fund all operations and avoid cash flow shortages.

By working with Crowdz, you get better rates when selling your revenue sources. Besides that, you can trade with banks on the platform and get a relatively lower interest rate. 

Since all our transactions are confidential, you don’t have to worry about other parties knowing about the traded contracts. Further, you avoid all the challenges associated with other methods of sourcing capital.

 

Sign Up to Crowdz to Turn Your Recurring Revenue Into Capital

Crowdz recurring revenue financing solution is the most reliable option for entrepreneurs that need capital. With our platform, you can get all the funds you need without having to wait for weeks or months. 

Flexible agreements also allow you to run your company with less financial strain. Get early access starting October 15, 2021 to be among the pioneer entrepreneurs to transform their businesses with Crowdz.

By Sarah Wyman

October 13, 2021

Share this article