Better Than A Small Business Loan
REVENUE PARTICIPATION CERTIFICATE (RPC)
Shearson Capital will buy your future revenue.
The RPC program is perfect for larger companies that don’t want the hassle or fickle nature of senior bank lending, require more capital than banks are willing to lend, or want to avoid dilution from equity.
Don’t want to worry about your bank questioning your expenses and reconsidering your senior facility in a down market or at renewal time? Wish you could avoid the dilution and valuation issues associated with equity or mezzanine debt? Shearson Capital provides entrepreneurs with the flexibility to focus on a long-term strategic plan without investors second guessing the minutia of their monthly expenses.
This program differs from our other programs in that it:
- Limits dilution
- Avoids valuation issues
- Offers amounts up to $5,000,000
- Based primarily on your business’ revenue and EBITDA
HOW IT WORKS
The Revenue Participation Certificate or RPC allows a company to sell an agreed upon percentage of its revenues to Shearson Capital for a lump sum. In exchange, Shearson Capital then receives an agreed upon rate of return and principal from future royalty payments. Generally, revenues are run through a third party trust company which distributes revenues accordingly to the agreement. This arrangement provides Shearson Capital with greater security and thereby permits more aggressive and common sense underwriting than is typically found elsewhere. It is also common for Shearson Capital to permit unusual collateral such as intellectual property (IP) which would be placed into the trust and then leased back by the company for its use.
An RPC does not require a fixed interest rate or payment. The royalty will decrease in line with lower revenues and the percent of revenues itself can be negotiated to go up or down based on performance. The structure is focused around a rate of return. Therefore, if the royalty drops with revenues, it will be paid back over a longer period of time.
HOW MUCH YOU QUALIFY FOR
Get a FREE quote now and see exactly what you qualify for by filling out our quick form. Our professional representatives are standing by to answer your questions and offer a no hassle and no obligation FREE quote to see if a Revenue Participation Certificate is right for you.
To find out how much you qualify for, simply complete the online application and provide some basic information. You will receive a free, no obligation quote within 24 hours from a Shearson Capital Account Executive who will review your funding options.
- EBITDA of .5 to 4 million
- 5 to 20 million in sales
- 8+ year operating history
- EBITDA margins at 10% minimum and preferably 20%+
- Ideally 60% or greater gross margin (compensating factors considered)
- Growth rate of 10% +
- Opportunity for liquidity or recapitalization in 4 to 6 years