- Bonside Notes
- Build Now, Pay Later
Build Now, Pay Later
Financing tailor-made for brick-and-mortar
Opening a new brick-and-mortar location unlocks a high volume of revenue – anywhere from $250K to $4M+ – per year. It’s why build-outs are a worthwhile investment.
But today’s financing options aren’t intuitive for financing a build-out:
Debt is difficult to access, requiring personal guarantees and collateral
Equity is quite expensive, especially for a build-out
Cash flows are limited, particularly in the early days
So what is intuitive?
Ideally something that:
Accounts for the seasonality of your business
Requires a low payback relative to the revenue you’ll generate
Credits you for existing location
It’s why at Bonside we introduced the Repeatable Revenue Agreement (RRA), where you repay a fixed multiple of borrowed capital via a monthly percentage of sales until you hit that multiple.
It’s a model designed specifically to mirror brick-and-mortar growth, and the future of build-out financing.
Curious how it compares to the cost of other capital sources? Check out our 3 part series ”The True Cost of Capital”.