Revenue-based
Financing

Breaking through ordinary banking for MSMEs

Revenue based financing

Revenue based financing is a cash flow contract to invest in a company in exchange for a predetermined percentage of its future revenue over a specified period.

Flexible 
repayment

RBF offers flexible repayment based on a percentage of revenue, which fluctuates according to the business’s revenue stream. This reduces financial strain during periods of lower revenue.

E-payment
integration

Through integrating with e-payment service solution, repayment can be done automatically through the e-payment solution service provider, allowing more frequent repayment and reducing the entire repayment sum to be incurred.
Benefits of revenue based financing
Typical fixed-income 
instrument during rate hikes

Implication of rate hikes

1. Interest payments increase.

2. Rate hikes are to combat inflation, which means higher operating costs.

Difficult to survive

1. Net cash flow drops.

2. MSMEs are difficult to fulfill repayment obligation.

3. Banks liquidate MSMEs.

Intensifying cash flow burden

1. Inflation is not fully passed through to customers.

2. Higher costs and interest payments squeeze down margin.

Revenue Based Financing
during rate hikes

Implication of rate hikes

Inflation means higher operating costs, which cannot be fully passed through to customers. This squeezes down margin.

Easing cash flow burden

1. Unlike fixed-income instrument which ties interest payment with reference rate, repayment is a predetermined % of revenue.

2. Therefore, repayment of RBF will not intensify cash flow burden even when reference rate goes up.

Higher chance to stay

1. MSMEs may suffer from losses for a period of time.

2. But it will not face immediate repayment demand and threats of liquidation.

High interest rate environment
Hiking interest rate
MSMEs suffers from rising interest rate
environment.
0.08%
FED Rate in March 2022
5.33%
FED Rate in Oct 2023

Upward drifting Domestic Reference Rate

Pintar Global​

Pintar Investments

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