01/18 2016

Revenue Financing

How much money would your business or project make if you found an Investor? This is the  simple question we ask in order to get Business Owners, Entrepreneurs and Commercial Real Estate Investors to think of revenue streams,  revenue financing and how those revenues can help get their projects financed.

Revenue Financing takes advantage of projected revenues and past revenues in order to demonstrate positive cash flow to Investors and Lenders.  Many a real estate deal goes by the wayside because Investors don’t want to take the time to outline Pro Forma revenues (revenues moving forward after remodeling or improvements).    You could also be looking to raise revenue for a Commercial Real Estate (CRE) building based upon past performance, for instance  2013 thru 2015 Profit and Loss statements.  Or you might want to combine Past Performance with Pro Forma projections and submit that to an Investor or Lender.

ProForm for AmeriFunding Article

ProForma 2 for AmeriFunding Article

AmeriFunding.Net has many Investors who look at both existing AND pro forma revenues.    If you only submit past performance, then you are narrowing your financial options by default.   Past revenues may not include new marketing ideas, may not include the very core of why you need more investment:  TO INCREASE PROFITS!  The past revenues are vital to be sure, and without them, there will likely be no investors interested.  But failing to provide a solid, honest and legitimate outline of future earnings through your pro forma projections, will not give them an idea of increased profits to come.

Some tips on maximizing revenue streams to get your project financed:

~  Keep past and future earnings in separate spreadsheets or tables

~  Your YTD (current revenues are generally not an entire year)  revenue (if any) will generally be on a separate document and can be certified by a CPA to give it added credibility

~  Do not write out fantastic numbers that nobody will believe… being conservative in your pro forma projections means that you are realistic and have thought things out

~  In Commercial Real Estate (CRE) transactions, don’t forget your CAM (Common Area Maintenance) Revenue (those expanses passed along to the tenants)

~  Revenue streams need to match other areas of your Business Plan.  If you are talking about higher revenues in your pro forma projections? Have you mentioned that in the Biz Plan?  (See another article:  The One Page Deal Sheet ) If you are attempting to get your deal done WITHOUT writing a business plan, you are swimming against the stream.  (AmeriFunding has a department that writes plans for our partners and clients)


AmeriFunding.net has Investors who actually put more weight on your pro forma projections than on past earnings!  Without projections of where your project is going, they cannot make the simple business decision to get you the money you need.  Invest time in pro forma projections, invest time in your business plan.   Contact us if you don’t have one, and see what our technical advisers and team can do to get you on the right track.   Call Today at 703-801-0377


Revenue Financing



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