Build Now, Pay Later

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:

1. Accounts for the seasonality of your business

2. Requires a low payback relative to the revenue you’ll generate

3. 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”.