Revenue-Based Financing or Term Loan? Choose With Confidence

techadmin

techadmin

— 1 min read
Revenue-Based Financing or Term Loan? Choose With Confidence

Choosing the wrong debt product can strangle cash or dilute future equity. Use this plain-English flow to decide.

Quick Decision Flow

  1. Monthly revenue ≥ AED 150 k?
    • No → term loan usually cheaper.
    • Yes → go to step 2.
  2. Gross margin ≥ 40 %?
    • No → revenue-share cushions thin margins.
    • Yes → move to step 3.
  3. Seasonality swings > 35 %?
    • Yes → revenue-based financing flexes with slow months.
    • No → fixed-payment term loan fits.

Borrower Tips

  • Always model worst-case sales before signing a revenue-share deal.
  • Check if your term loan has pre-payment penalties—handy if a VC round closes early.

Keywords: revenue-based financing UAE, term loan comparison, SME debt options, funding decision tree
Hashtags: #KlubAI #RevenueShare #TermLoan #FundingStrategy #SMEDebt

Disclaimer: Financing terms vary; run numbers with your lender before committing.

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