Can I speak to Aristo Partners by phone?
We love to help entrepreneurs irrespective of whether we fund them or not. Please feel free to contact us should you have any questions at 312.600.5133
Do you offer seed funding?
Our revenue-based financing (RBF) model is best suited for companies that are currently generating or on target to generate at least $200K in annual revenue in the funding year. If you’re a pre-revenue startup, please send us an introductory email so we can keep in touch.
What type of companies do you fund?
Revenue-based financing model is best suited for high-growth, high-margin companies. AristoPartners specifically focuses on making investments in technology, healthcare, and consumer product companies.
We also love to support women, veteran and minority owned businesses.
Can you fund non-U.S. based companies?
Currently, we only fund US-based companies.
How much funding can I get from you guys?
Amount of funding is based on your growth rate, existing debt, use of funds, etc., but is generally around 10% to 30% of your company’s annualized revenue run-rate (e.g., for a $1MM annual revenue company maximum we provide is $300,000)
How does revenue-based financing work (RBF)?
We provide you capital and in exchange for this loan collect a small percentage of your monthly revenues. These payments are not fixed as in the case of a typical bank loan but instead fluctuate based on your monthly revenue flow. Simply put, months where you don’t make money we don’t get paid.
Can you provide capital in forms of funding besides RBF?
Yes, depending on the company we do consider providing capital in the form of debt, convertible debt and/or equity. Please let us know in the message section if your are interested in any of these other options when you apply.
Is revenue-based financing same as “factoring”, “account receivable financing” etc.?”
No, revenue-based financing (RBF) provides growth capital with fewer restrictions (e.g., non-fixed loan terms) in exchange for a small percentage of future revenues, while the other forms of capital are typically looking to collect fixed payments on rigid terms, from sales that already happened.
What is the interest rate for revenue-based financing?
Given this is not a bank-loan there is no fixed monthly interest rate instead your payment will vary based on your monthly revenues. We will typically withdraw ~ 2%-10% of monthly revenues. The terms vary from deal to deal based on time to repay loan, as well as future forecasted revenues. However, cost of capital annualized typically falls between 15%-25%.
Do I keep paying this monthly percentage forever?
No. When we agree on terms we will also set a target total cap, once this is reached the loan agreement is met.
Isn’t the cost of capital through equity financing lower?
No. Typically for equity deals (convertible debt or pure equity) cost of capital is >30%. This is driven by valuation at which equity is granted initially and where the company exists. Hence, revenue-based financing will be cheaper than equity financing also legal fees will be lower and the interest payments on the revenue-loan often tax deductible.