# FAQ ## General **What is Revflow?** Revflow is a platform that connects subscription-based businesses with investors to facilitate trading future monthly recurring revenue for the annual amount, democratising the market for investors in the process by drawing liquidity from Solana. Revflow handles the credit-scoring process and tokenisation of illiquid revenue assets to turn them into liquid, tradable assets. The Solana blockchain handles many of the traditional rent-seeking activities, such as custody and settlement, which allows for a lower cost of capital to businesses and higher yield rates for investors. **Elevator Line:** We're building the democratised, next-generation, non-dilutive funding stack for the subscription economy. Built for recurring revenues. Built for yield-seekers. Built for you. **Who can participate in Revflow?** Revflow targets two personas: * Subscription-Based Businesses * Investors For Subscription-Based Businesses, we look at the following: * Annual Recurring Revenue of $100,000 or more (or an MRR of $8,333 +) * 6 Months Trading History * Operating under a Legal Entity * Usage of Cloud Banking/Accounting/Subscription Management Tools * Growth-centric. Revflow's proprietary credit-scoring model determines whether a business is likely to grow over the next 12 months, and we will be typically servicing businesses whom do not have a negative growth rate to minimise the chances of default. For Investors, we have have the following requirements: * Assets that reside on the Solana Blockchain, specifically USDC. * For **Junior Tranche Investors**, you must meet the following criteria: * Be a registered entity, high-net worth individual with accredited investor status (US) or a DAO Treasury * Undergo a KYC/B process on-chain to validate Solana Wallet credentials * For **Liquidity Pool Investors**, you must meet the following criteria: * Hold USDC assets in your Solana Wallet * Have an AML/Anti-Fraud process run against your wallet address (automated) **Is this a rebranded version of invoice factoring?** No. [Invoice Factoring ](https://www.novuna.co.uk/business-cash-flow/invoice-finance/products/invoice-factoring/#:~:text=Invoice%20factoring%20is%20a%20process,to%20an%20invoice%20finance%20company.)involves the sale of invoices to a third-party, whom become responsible for collecting customer payments. With Revflow, investors are not trading capital for the right to own a subscription from a business, they're trading capital to buy the future revenue of a subscription at a pre-determined price and for a pre-determined time period. **Why can't businesses skip the intermediary and go straight to the lender for better rates?** This question crops up a lot, and the best way to answer it is by comparing Revflow to other intermediary platforms in different spaces. For example, you could spend hours researching flights, villas and restaurants for an upcoming holiday, or you could use apps like AirBnB, Skyscanner and Hopper who will do it all for you in a matter of minutes *and* find you the best deals. Similarly, you could use a phonebook to find a plumber, shortlist 10 candidates and call them up for quotes, or you could use a service like CheckaTrade where plumbers reach out to you after posting your job specification. With Revflow, businesses do not need to call up different banks or lending/debt providers, spend hours getting their financials ready for scrutiny and potentially wait weeks for a decision. They can have quotes within 24 hours of being approved on our platform, and have access to capital 24 hours after that. The way we structure the trading of future recurring revenue is also unique, with only a few competing platforms in the TradFi space, meaning we can offer rates that are unlikely to be matched by traditional lenders. ## Investors **How can I get involved as an Investor?** Simply fill out the form below and we will get back to you. [Investor Waiting List](https://tally.so/r/3XXQj3) **Why are you using the USDC Stablecoin?** USDC is fully backed by cash, meaning it's always redeemable 1:1 for the Fiat US Dollar. Both the parent company (Circle) and the Stablecoin are highly regarded and trusted within centralised finance and decentralised finance ecosystems. Additionally, Circle provides a seamless off and on-ramp into USD/USDC, which speeds up treasury operations to get businesses and investors their cash, fast. We will not be exploring other Stablecoins for now, nor will we be accepting variable assets such as Bitcoin, Ethereum or Solana. A key driver behind Revflow's concept is stable yield for investors, therefore we must mitigate the risk of elements which disrupt the stability of the yield. **Why are there different yield rates expected between each Tranche?** Junior Tranche Investors take on first-loss capital risk, which means the Liquidity Pool (Senior Tranche) will return capital before the Junior Tranche Investors in the case of a default or reduced-payments. As a result, Junior Tranche Investors get a premium called the Junior Fee, which represents the additional yield they will generate for taking on the first-loss capital risk. **What happens if the business experiences churn or they default on their repayments?** Revflow will mitigate churn by allowing businesses to swap out churned contracts with new contracts - this is one of the core reasons we are implementing trading limits and not allowing a business to trade their full future MRR for the annual amount. Additionally, Revflow will have access to near real-time financial information from the business to facilitate the trades, our systems will be able to pickup on any forecasted issues with churn and repayments. Additionally, we will be providing Junior Tranche Investors with built-in tools to access our recommended insurance partners. For Liquidity Pool Investors, the risk is greatly reduced as the LP acts as an index across all active trades and the reserve mechanism. **What makes Revflow different to the other Real-World Asset DeFi financing platforms?** For starters, we're focusing solely on one vertical: subscriptions and recurring revenue. We believe the market is big enough for us to nail down a strong service and provide to our customers and investors needs. Other DeFi platforms providing RWA financing have a broader scope, which adds significant complexity as each asset and subsequent term sheets for the financing have their own unique characteristics. Additionally, we noticed during our research that some RWA DeFi platforms utilise a lot of middlemen; originating the assets, passing off the securitisation to another platform, passing off the tokenisation to another and finally passing the liquidity/funding element on to another...it's too many! Not only does this cost add up for the business and lessens the yield for the investor, the inherent risk of having multiple parties broker a transaction is magnified (think: hacks, defaults, faulty code in smart contracts etc.). **Will there be a Revflow Token?** Yes, there will be a token used for governance upon launch. This will also form part of future planned DAOs, which we will give more information on in the future (hint: Venture DAOs). We will be incentivising users on our platform via our native token, so stay tuned for the tokenomics! **Can Junior Tranche investors automate trades based on preferences?** We'll be launching automations once we have completed our beta phase. This will enable Junior Tranche investors to have their investments run on auto-pilot based upon their risk and size preferences. **Will there be a secondary market?** Yes, once we have finished the beta phase we will be incorporating a secondary market into the platform. This will allow Junior Tranche investors to sell their positions off to other investors should they wish to exit their positions before maturity. ## Customers **How can I get funding from Revflow?** We're currently building, but if you'd like to be an early-adopter and have access to preferential rates whilst we're launching our initial product then please fill out the form below. [Get Financed Form](https://tally.so/r/mOvjYn) **Are there any restrictions on the use of capital?** No. You will come across other revenue-based financing platforms that offer a fixed-fee on capital, with the fee differentiating based upon what you put your capital towards (for example, Marketing at 8% or Hiring Staff at 12%). You are free to use the capital in any way you choose to grow your business. **How long does it take to apply to get funded by Revflow?** We will be processing applications with a 24-48 hour turnaround. For a little glimpse, we onboard your business onto our platform and hook up to your financial systems (read-only). This kicks off our automated proprietary credit-scoring process which we then review manually. After a maximum of 48 hours, your business will either be approved for trading or you will be rejected (albeit you can always re-apply at a later date). **Will our customers know we have traded their subscription contracts?** No. This concept is different to Invoice Factoring; there will be no third-party involved in the remittance process. You will continue to charge your customers on a monthly basis. Revflow will charge you once a month for the repayment amount, which we distribute back to the investors. **Wait, I don't want USDC? I want fiat!** Unless you choose to accept the annual amount in USDC or repay in USDC, you don't ever have to touch it! You will be paid in USD and repayments will be made in USD. Our treasury and on/off-ramp partners will handle the settlements between USD and USDC. Down the road we plan to implement FX Hedging instruments to allow access to a wider range of fiat currencies, such as GBP and EUR. **What do you do with our financial data? How do you protect it?** Like other new-age lending or financial analytics platforms, Revflow requires read-only access to your accounting, banking and billing/subscription management systems. We run your data through our automated, proprietary credit-scoring process which is used to calculate your riskiness, health score, discount rates and trading limits. We also conduct forecasting and present this data back to you - a free subscription-analytics tool bolted onto our platform! In regards to protection, we will be operating at the highest standards of information security. The data that is used by Junior Tranche Investors to underwrite any trades is anonymised at the source, with no sensitive information ever touching the blockchain to facilitate the trades. We will also have frequent security audits conducted on our off-chain systems and our on-chain systems. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://revflow.gitbook.io/revflow/whitepaper/faq.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. 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