Launch of flexible finance service

Max Chmyshuk, founder and managing partner at Fleximize, said: “Revenue-based financing (RBF) is often viewed as ‘the best of both worlds’ sitting between debt and equity investment.

“The value of monthly repayments fluctuates with the performance of the client’s business so they pay more in good months and less in bad ones.”

Fleximize said it believes that financially strong and viable enterprises are being rejected for loans because they do not fit the “strict criteria applied by many banks”.

The finance provider said it will use in-depth analysis of a company’s financial performance and its customer feedback on online trading platforms such as Amazon and eBay to lend to organisations that have been rejected by banks.

Under the RBF model, companies receive funding from Fleximize in exchange for a fixed percentage of gross revenues, typically 10 to 20 per cent, until a certain total amount is paid back, estimated to be 110 to 130 per cent of the initial amount loaned to the company.

Repayments, therefore, reflect business performance, said London-based Fleximize.

Mr Chmyshuk said: “We feel that our revenue-based financing solution is significantly less risky for a business than other forms of more mainstream financing usually involving fixed regular repayments.

“There is a natural alignment of interests between us and our clients compared to a traditional loan: any payment to us means that the clients are successfully selling their products or services.”