How to Grow F&B, Retail, Online SMEs with Revenue-Based Financing

Jun 3, 2024
June 3, 2024

In the dynamic business landscape of Singapore, small and medium enterprises (SMEs), particularly in the F&B, retail, and online sectors, often struggle with financial challenges that stifle their growth. Revenue-based financing (RBF) offers an alternative financing solution for these industries, leveraging on their cashless transactions for funding.

What is Revenue-Based Financing?

Revenue-based financing (RBF) is a tailored financial solution for sectors such as F&B and retail, where cash flow closely mirrors sales revenue. This innovative financing tool allows businesses to secure funds based on their projected sales, bypassing the need for traditional collateral or equity. Especially suited for environments with frequent cashless transactions, RBF aligns perfectly with the operational rhythms of these industries, offering a fluid financial support system that grows in tandem with their sales.

How Does Revenue-Based Financing Work?

RBF gives businesses funding based on the current and projected sales revenue, from their records of cashless transactions. This approach ties funding amounts directly to a company’s sales revenue,  which can be beneficial for sectors like F&B and retail, where sales volume can be forecasted , making financial planning more reliable and stress-free.

Advantages of RBF for SMEs in F&B, Retail, and Online Businesses

The benefits of revenue-based financing for industries such as F&B, retail, and online businesses includes:

  • No Equity Dilution: Allows business owners to secure funding while retaining full control, which is crucial for maintaining independence in strategic decision-making.
  • Collateral-Free: Unlike traditional loans, RBF does not require assets as security, making it accessible for businesses, especially small ones, that might lack tangible collateral but have steady revenue streams.
  • Speed and Efficiency: The RBF process is streamlined to ensure quick access to funds, typically requiring minimal documentation such as recent bank statements This expedites the funding process, allowing businesses to respond promptly to growth opportunities.
  • Industry-Specific Suitability: RBF is especially effective for sectors with records of cashless transactions, such as F&B and retail.
  • Scalability: RBF is able to support the scaling of businesses by aligning funding with revenue increases, which is ideal for businesses in  rapid growth phases.

Navigating the Application Process for RBF

The application process for RBF is straightforward and designed to be SME-friendly:

  1. Eligibility Check: Businesses need to verify they meet specific criteria such as business operational period and records of their cashless transactions
  2. Document Submission: Submit essential documents like recent bank statements and NRIC
  3. Approval and Disbursement: Funding is quickly disbursed once the application is approved, enabling SMEs to efficiently enhance their operations or capitalise on growth opportunities.

Partnering with the Right Financial Provider for RBF

Choosing the right financial partner is crucial for maximising the benefits of revenue-based financing in Singapore. SMEs should prioritise providers known for transparency, flexibility, and a supportive approach.

At GB Helios, we excel in offering business financing solutions in Singapore that are not only customised but also deeply aligned with the specific needs of SMEs in dynamic sectors such as F&B, retail, and online businesses. Talk to us to discover how our revenue-based financing can strategically support your business growth. Alternatively, explore our other financial products, such as short-term loans.

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