Since your payments are based on a percentage of your cash collections, when your revenue or cash collections decrease, your payments decrease. Of course, the opposite is also true. In any case, what happens when your revenues decrease is that your payments become smaller and it takes longer for you to pay back the initial investment. However, unlike other types of debt, the way our revenue-based financing is structured means you pay only when you collect cash, which prevents cash flow issues typically associated with, for example, a term loan.
What happens if my revenues decrease?
by admin | Jul 29, 2020