Lighter Capital, an alternative lender targeting the startup community, is adding new financing products to its offering.
In a press release issued on Wednesday (June 5), Lighter Capital said it will add lines of credit and term loans to its current offering of revenue-based financing. The products aim to promote the financial health and growth of startups by providing new companies with capital as they need it, as companies do not need to have already raised venture capital to qualify for financing.
"Startups have diverse funding needs and deserve diverse funding options – especially in times of growth when capital is critical," said Lighter Capital CEO BJ Lackland in a statement. "Startups typically need to raise millions of dollars from VCs to qualify for loans and lines of credit. By leveraging our FinTech lending platform, we can now provide bootstrapped and angel-backed companies with a full suite of funding options."
He added that Lighter Capital aims to provide $3 million per company via a combination of revenue-based financing, lines of credit and term loans.
The Lighter Line of Credit is a revolving capital line that enables startups to draw and return capital. The company's Lighter Term Loan focuses on providing structure and predictability to the lending process.
The addition of the two financing products to Lighter Capital's offering follows the release of the company's industry report, which highlighted the rise of revenue-based financing for the startup borrower segment.
Other B2B FinTechs in the alternative finance community have similarly targeted startup borrowers, which often lack credit history to secure traditional bank loans.
In India, Indifi Technologies introduced its own invoice discounting line of credit designed for B2B startups. Venture capital provider InnoVen Capital, also based in India, previously launched a partnership with traditional lenders to facilitate financing to startups as well.