Leverage your private round with banking and alternative financing
We identify opportunities and lead negotiations with financial providers to secure the best terms for your project
Banking and alternative financing offer various options to boost your startup’s growth. These include credit lines for short-term liquidity needs, factoring to advance invoice payments, confirming to manage supplier payments, loans for medium- to long-term projects, and Revenue-Based Financing (RBF) for businesses with recurring revenue.
Each option is tailored to different needs and growth stages, providing financial flexibility while preserving control of your company.
Banking and alternative financing offer various options to boost your startup’s growth.
Each option is tailored to different needs and growth stages, providing financial flexibility while preserving control of your company.
01
Credit line
A credit line is a flexible, renewable short-term financing product designed for businesses needing immediate liquidity to manage operational expenses or cover occasional working capital needs.
Startups, SMEs, and large companies requiring working capital or daily liquidity for operations.
• Strong financial and credit history.
• Detailed cash flow model.
• Minimum business tenure and industry stability.
• At least six months of revenue.
• Positive equity.
• Review of the company’s CIRBE (Spanish Credit Reporting System).
• Term of up to 12 months with interest differentiated between used and unused amounts.
• Includes opening and maintenance fees per contract.
Factoring is a short-term financing solution that allows businesses to sell pending invoices to a financial institution, gaining immediate liquidity without waiting for accounts receivable to mature.
Businesses of all sizes operating with long-term clients seeking to advance the payment of credit sales to maintain healthy cash flow.
• Issued and confirmed invoices with defined due dates.
• Strong relationship and payment history with client issuers of the invoices.
• Detailed cash flow model.
• Clients being factored must pass a risk analysis.
• Review of the company’s CIRBE.
• Fee charged on the amount of the ceded invoice.
• Financing terms aligned with invoice maturity.
02
Factoring
03
Confirming
Confirming is a short-term financing modality that enables businesses to manage supplier payments through a financial institution, offering suppliers the option to receive early payment on their invoices.
Companies seeking to optimize supplier payment management and strengthen commercial relationships through timely, flexible payments.
• Contractual relationship with suppliers and a confirming agreement with a financial institution.
• Detailed cash flow model.
• Defined invoices and due dates for each supplier.
• Review of the company’s CIRBE.
• Fee based on agreements established with each supplier.
• Short-term payment terms as negotiated.
Structured medium- or long-term financing that provides businesses with a specific amount of money to be repaid in periodic installments. Ideal for financing investment or expansion projects without resorting to external capital that dilutes company control.
SMEs and companies needing capital for growth projects, asset purchases, or working capital improvement.
• Strong financial background and project viability.
• Robust business model with growth potential.
• Documentation on fund usage and repayment capacity.
• Review of the company’s CIRBE.
• Terms of up to five years with competitive interest rates.
• Possibility of grace periods for increased flexibility.
04
Loans
05
Revenue-Based Financing (RBF)
Revenue-Based Financing is a non-dilutive financing alternative based on revenue, ideal for companies with recurring income. Payments are made as a percentage of monthly revenue, adapting to sales fluctuations.
Companies in sectors with recurring revenue (e.g., SaaS, ecommerce) needing capital for growth without resorting to equity or traditional loans.
• Stable and recurring revenue history.
• Consistent growth projections.
• Viable business model with future revenue potential.
• No fixed installments; repayment is based on a percentage of monthly revenue.
• Initial capital is repaid with a pre-agreed return factor (e.g., 1.3x of the capital).
• Equity remains intact, making it ideal for growth without diluting ownership or affecting cash flow.
Leasing is a financing option that allows companies to use assets such as machinery or vehicles through a contract with a purchase option at the end of the term. It is ideal for businesses requiring strategic assets without significant upfront investment.
Businesses needing essential operational assets while optimizing cash flow and ensuring access to key resources.
• Financial solvency and capacity to meet periodic payments.
• Justification of the asset within the company’s business model.
• Leasing contract with the financial institution.
• CIRBE and financial analysis review.
• Periodic payments with a purchase option at the end of the contract.
• Contract covers the use of the asset during the established period, allowing for its acquisition at the leasing term.
• Costs include interest and maintenance based on agreed terms.
06
Leasing
07
Renting
Renting is a medium- to long-term rental contract allowing businesses to use assets such as vehicles or tech equipment without ownership. It includes additional services like maintenance, insurance, and renewals, ensuring seamless and efficient management.
Businesses seeking to keep assets updated, streamline operational management, and reduce risks associated with asset ownership.
• Financial capacity to meet periodic payments.
• Identification of the operational need for the asset.
• Contractual relationship with a leasing company.
• CIRBE evaluation and prior financial analysis.
• Periodic payments without a purchase option, including additional services.
• Flexibility to update assets based on business needs.
• Contract tailored to the agreed term and specific usage conditions.
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It’s a common misconception that startups cannot access banking financing, but the reality is different. At The Startup CFO, we work to break that myth and help you explore various banking financing options. We address your questions and guide you at every step so your project gets the financing it needs.
Credit lines are typically short-term (12 months) and can be renewed based on credit policies and the company’s good usage.
Depending on the financial institution’s policy, up to 90% of the invoice value can be advanced, with a commission on the operation.
Leasing includes a purchase option at the end of the contract, while renting does not. Leasing is ideal for long-term asset acquisition (e.g., machinery or vehicles). Renting suits temporary or frequently updated assets, like company vehicles or tech equipment.
Invoice advances are useful for immediate liquidity for a specific invoice, maintaining direct client relationships. Factoring is better for long-term financing relationships involving multiple invoices.
Factoring or invoice advances are ideal. Factoring sells accounts receivable to a financial institution for immediate payment. Invoice advances provide liquidity for specific invoices without transferring them.
Yes, any supplier issued an invoice can opt for early payment, provided the confirming agreement is active with the financial institution.
Using confirming when facing cash flow issues may increase costs due to additional interest and fees. If the confirming includes financing, it may raise company debt, limiting access to other financial products.
Loans can finance growth projects, asset acquisition, working capital, or business expansion.
Revenue-based financing is a non-dilutive funding model where the company receives capital and repays it based on a percentage of monthly revenue, allowing for variable payments aligned with performance.
Companies with recurring and predictable revenue streams, such as SaaS, e-commerce, and subscription-based businesses, that seek flexible financing without giving up equity.
The company avoids fixed payments and can repay the funding based on its income, reducing financial pressure during months of lower revenue.
Our external CFO service can elevate your startup’s financial and strategic management. Send us a message, and we’ll get back to you as soon as possible to schedule a meeting and explore how we can help.
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