RITMO is a revenue-based finance platform that provides the best option for financing digital marketing campaigns for eCommerce, D2C, SaaS or game and app developers located in Southern Europe.
The only requirements are that they are more than one year old and therefore have a consistent and predictable revenue model with monthly revenue of more than 10,000 Euros.
In RITMO's revenue-based financing, it is the company's own sales that self-finance the digital campaigns, without interfering in the rest of the projects and needs of the business, so that the company only has to worry about its sustainable growth.
RITMO has developed a platform that allows predicting the future revenues for this type of company based on an artificial intelligence system and a predictive data model.
The aim is to understand their sales history that is related to their investments in digital marketing and thereby be able to make a forecast based on their algorithms. To do this, the main data is extracted from digital marketing and payment platforms such as Google, Facebook, Stripe, and Open Banking. Banking data (balance, income and expense movements), sales and turnover analysis (volume, inventory turnover, payment history, margins), and key accounting figures (balance sheet, profit and loss account and cash flow analysis).
With this data, the RITMO model is able to take a dynamic x-ray of revenues, predicting with a high degree of certainty the future turnover and efficiency of digital marketing campaigns in relation to sales and their return structure.
The transparency and wealth of data that digital companies have both on the side of their main source of expenditure (digital marketing platforms) and on the side of their income (payment platforms such as Stripe) mean that financial and efficiency analysis through Artificial Intelligence predictive systems such as RITMO’s provide rigour, management control and confidence on both sides, thereby providing a quick and valuable solution. With this, the maximum financing and form of repayment are determined within 24 hours.
This form of analysis - almost in real time - means that in the future, if the company's turnover increases, it will be eligible for a greater volume of financing.
A dynamic model
If the scoring is positive the startup will get the funding approval in 24 hours and in five days the money will be in their account so that they can start investing in their digital campaigns.
The form of disbursement is an additional benefit in the perfect match between advertising investment and control of the results obtained through digital campaigns.
There are two options: pre-payment mode and credit mode.
The first is a pre-payment mode using a RITMO credit card linked to the advertising accounts, where the capital will be deposited and disbursed as the campaigns are paid for, adjusting to what is needed at any given time.
The second is the credit method that allows payment of the invoices issued by each platform. The process is very simple, you only have to upload the invoice through the RITMO portal and RITMO takes care of the payment.
If the capital advanced by RITMO is greater than the invoice, the invoice will be paid in full. If it is less, you can request a partial payment of the invoice and the company will pay the remaining amount.
How funding is repaid
Just as the process of analysing, granting and disbursing funding is straightforward, so is the way it is repaid.
RITMO's revenue sharing model means that money is only paid back when sales are generated.
Therefore a small percentage of the monthly revenue, between 3% and 15%, is returned each time the invoicing is done, which goes towards both the principal - the money received - and the cost of this, a flat fee. A fixed amount: clear, transparent and without any small print that is established when the contract is signed.
The result is a financing model that is 100% in line with the pace of the business: if the income decreases, so do the payments and the payment period is extended.
What if I need more financing?
RITMO's investment proposal is short-term, usually for six months, after which time turnover may take a leap, which could, in turn, lead to a change in the structure of future digital campaigns and also in funding requirements.
However, companies can also apply for funding earlier if they didn’t opt for the maximum amount of capital at their disposal (as determined at the time of application), if the company's revenue has grown significantly since the advance was granted or if payment of 80% or more of their last advance has been reached.
All of this sums up what RITMO offers you: a transparent and flexible financing model in which the startup only has to worry about designing the digital marketing campaigns and RITMO provides the funds to achieve it.