Question 1

What is revenue based financing?

Answer

Revenue-based financing is an advance based on a business’ future revenue. For example, if you get financing of $50,000 for a flat fee of 8% with an agreed repayment percentage of 10%, Flywheel will disburse $50,000 then collect 10% of your revenue until you’ve paid Flywheel $54,000.

Question 2

Why should I use Flywheel's revenue based financing?

Answer

We believe that revenue based financing supports your business growth by meeting you where your financing needs are. 1) Flywheel takes NO equity: We think that using equity for short term, repeatable processes such as digital marketing spend is too expensive for early online businesses. 2) Flywheel supports your business: We make decisions and disburse quickly at affordable rates and only collect when you make money. 3) Flywheel adds value to your business: We love supporting early businesses through education - our exclusive webinars and workshops will help your business grow.

Question 3

What are the fees associated with this deal?

Answer

There is no upfront fee required to apply for financing. There is a fixed fee associated with each advance that is to be paid over time. This fixed fee is 6 - 12% for a 6 month duration.

Question 4

What can I use the money for?

Answer

You can only use the money from Flywheel's revenue based financing on growth drivers of the business e.g. digital marketing spend, inventory purchasing and other approved expenses as discussed.

Question 5

How do I repay my financing?

Answer

Flywheel will take a percentage of your weekly revenue until principal and fees are repaid.

Question 6

How much financing can I get from Flywheel?

Answer

The size of the advance is up to 2X monthly recurring revenue

Question 7

How long will the process take?

Answer

The entire process (from application to disbursement of funds) can be completed within 3 days of receiving the requisite data from the company. Once we determine that your company is a good fit, we will disburse the funds within 24 hours.

Frequently asked questions

Revenue Based Financing