There has been an evident shift in the world of finance in recent years. One innovative model that's significantly gaining traction is revenue-based financing (RBF), providing companies an alternative path to fund their growth.
Today, we shine our spotlight on one such player in the RBF space - Uncapped. With their promise of offering "fast, fair, and flexible" funding, are they really up to the task? Let's find out.
The Flexible Way To Grow Your Businesss
Uncapped, headquartered in London, was established with an entrepreneurial mindset and a clear goal - to help businesses grow without giving up their hard-earned equity. Unlike traditional lenders, Uncapped offers a more dynamic funding approach, directly linked to a business's monthly revenue.
With their revenue-based financing model, Uncapped offers capital to online businesses, e-commerce, SaaS, and DTC brands, amongst others, essentially making their offerings more growth-focused rather than being debt-driven. Their unique approach has seen them quickly grow their customer base across the UK and Europe.
Features & Benefits
Uncapped offers a digital application process, where funding can range up to $10m. The repayments are flexible, typically amounting to a small percentage (between 2% and 20%) of monthly revenue until the total payback amount is reached. Importantly, there are no early repayment fees, late fees or hidden costs.
No dilution or guarantees: You repay at your own pace, without late fees.
Flexible repayments: If revenues slow, so do repayments.
Simple fees: Know the full cost upfront. Pay only a flat fee, and no interest rates.
Additional capital: Access more funds as your business grows.
Pros
Uncapped comes with several key advantages. The first is their speed; they promise a decision in just 24 hours, far faster than many traditional lenders. This can be incredibly beneficial for businesses needing quick access to capital.
Secondly, Uncapped does not require personal guarantees or warrants, making their financing far less risky for entrepreneurs.
Moreover, the repayment schedule adjusts according to your revenues. If your revenues decline, so does the repayment. This provides businesses with a much-needed cushion during downturns.
Cons
While Uncapped's innovative approach to financing is advantageous, it's not without its shortcomings. Firstly, while Uncapped claims to be equity-free, the fact is that revenue-based financing does entail a cost. They charge a flat fee of 6-12%, which can be quite hefty for some businesses.
Secondly, their model might not be suitable for all types of businesses. Businesses with low profit margins or highly volatile revenues might find the repayment terms challenging to meet.
Comparisons
In comparison to other RBF providers, Uncapped tends to shine with its speed and simplicity. Clearbanc, another popular RBF provider, also offers rapid, equity-free funding but typically requires a higher monthly revenue. In contrast, traditional bank loans, while offering potentially lower interest rates, cannot match the speed and flexibility that Uncapped provides.
Founder-Friendly Funding Solutions
Empowering Entrepreneurs: From Constraints to Opportunities
For E-commerce Businesses
Uncapped provides a comprehensive financing solution specifically tailored for E-commerce businesses. They offer:
Funding up to $10m.
Financing term extending up to 24 months.
A clear and straightforward flat fee of 1% per month.
Loan amounts reaching up to 1.5x of your monthly revenue for your first loan.
The option for top-ups when needed.
The notable feature of no personal guarantees (PG).
Eligibility criteria for E-commerce businesses include:
Must be based in the UK, US, Germany, Netherlands, Spain, or Poland.
A minimum of $50k in monthly revenue.
A trading history of at least 6 months.
6 months of cash runway.
For Amazon Sellers
For Amazon sellers, Uncapped offers an equally flexible and growth-oriented financing model:
Full funding for 100% of inventory price.
A variable monthly flat fee between 0.5 - 1%.
Regularly available top-ups.
A 6-month financing term.
No personal guarantees (PG) needed.
To qualify, Amazon sellers must:
Be located in the UK or US.
Generate at least £10k per month in revenue.
Have a trading history of 6 months.
For SaaS/Software Companies
Uncapped's revenue-based financing extends to SaaS/Software companies as well, with features such as:
Financing up to $10m.
Loan amounts up to 6x of the monthly recurring revenue (MRR) in the first loan (e.g., a $100k monthly revenue equals a $600k loan).
A financing term of up to 24 months.
A flat fee of 1% per month.
No personal guarantees (PG) required.
Eligibility criteria for SaaS/Software companies are:
Must be located in the UK, US, Germany, Netherlands, Spain, or Poland.
A minimum of $50k in monthly revenue.
At least 6 months of trading history.
A diverse customer base.
6 months of cash runway.
Final Remarks
In the growing landscape of revenue-based financing, Uncapped presents a compelling proposition for certain businesses. Their focus on speed, flexibility, and fair financing terms is a breath of fresh air for entrepreneurs who have been tied to the strings of traditional financing methods.
However, it's vital for companies to thoroughly evaluate their options and understand the costs associated with this type of financing. As a company, you need to consider your profit margins, monthly revenues, and the volatility of your business model before proceeding.
In essence, Uncapped is bringing a unique approach to the table. Their model seems to blend the best of venture capital and traditional lending into a solution that’s designed for the digital age.
As we've seen, the world of fintech is not one-size-fits-all, and neither is revenue-based financing. However, if you're an online business with steady revenues and are looking for a fast, flexible funding option without giving away your company's ownership, Uncapped could well be worth exploring.
Applying for Revenue-Based Financing
The application process for Uncapped is online and straightforward. Businesses provide access to their sales data via integrations with sales and banking platforms (e.g., Stripe, Google Ads, Amazon). Based on this data, Uncapped evaluates the business's performance and determines the funding amount.
They typically provide a decision within 24 hours, which makes Uncapped a great solution for businesses in need of fast capital. Once the funding is approved, the money can be in the business's bank account in a matter of days.
Minimum Requirements
An online model such as SaaS, Subscription, Ecommerce, Mobile App or D2C
6+ months in business
50k+ Monthly revenue
Apply in Minutes
Find out if you’re eligible for funding in 30 seconds
Connect your sales and bank accounts.
Provide basic details about your business
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