Is Revenue-Based Financing Right for D2C Brands? The Pros & Cons
Direct-to-Consumer (D2C) brands operate in a fast-paced market where access to capital is crucial. High customer acquisition costs, inventory management, and marketing expenses create constant funding needs. Revenue-based financing offers an alternative to traditional loans and venture capital. Instead of fixed repayments or equity dilution, businesses repay a percentage of future revenue. This flexibility makes…