Too Good To Be True Financing For Startups?

Attention entrepreneurs!

If you need capital but don’t want to give away equity, sign personal guarantees, have your credit checked or even pay interest, look to the venture capital backed startup Uncapped.

uncapped

According to UKTN, “Uncapped is pioneering a new approach to business finance, allowing founders to raise crucial working capital between £10k and £1m at a flat fee of 6%.”

And this fee is payable only out of revenues, so if sales fall off, your payments can go to zero.

No pitch decks required, only an online payments based business with at least nine months revenue history.

Uncapped does, however, have access to your company’s bank account so it can suck out payments when available.

Is it a viable business model? The underwriting will tell.

(No endorsement implied).

https://www.uktech.news/news/revenue-based-finance-provider-uncapped-raises-10m-20191202

About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
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