It's unclear how high the "repayment cap" (principal plus effective interest) is set for the lender mentioned, but as folks have noted the article said 15-30% h

It's unclear how high the "repayment cap" (principal plus effective interest) is set for the lender mentioned, but as folks have noted the article said 15-30% higher than banks. The SBA apparently caps those between 5-8% so we're likely talking between 6-10%. I then wondered how they avoid the downside (lending an early-stage startup money at even 10% sounds crazy) and see that they're trying to make a much safer bet. From Lighter Capital's FAQ [0]: > We’re currently offering RevenueLoans® ranging from $50k-$2M USD. You can qualify for a loan for up to 33% of your annualized revenue run-rate. And > We will look for a percentage of revenue (in the range of 1% to 10%) until the total repayment cap is reached. These conditions make it much more like a small-business loan, and less like the "get $1M for big expansion". Has anyone gone through this process with this lender in particular? I'm curious if they take growth in revenue into account (I would, it makes that 33% of ARR number much easier to bet on). Does the PayPal Working Capital or Square Capital form ask that, or do they simply infer it from your known-to-them receipts? [0] https://www.lightercapital.com/how-it-works/faq/ https://www.lightercapital.com/how-it-works/faq/