Double Down was established to provide founders with non-dilutive funding alternatives to venture capital and to reflect the fact that many great companies either don’t want or are not suitable for venture funding. Some companies choose to take double down financing alongside other types of funding including venture, which of course is also fine. We exist to provide you with another option.
Double Down revenue-based advances are £10k to £1M facilities which are repaid via temporary revenue share agreements. We charge a flat 6% fee on our revenue advances regardless of how long it takes for an advance to be repaid. Repayments are based on a percentage of your sales, so they fall if your revenue falls.
We do not ask for personal guarantees, don’t take any equity, warrants or a board seat, and we don’t have any hidden fees or nasties.
Our revenue advances are designed to support your marketing spend. They are best suited to businesses that make online sales and have positive ROI digital advertising spend.
Our revenue advances are best used on marketing or inventory spend. If you would like to use it for other purposes, please discuss this with us.
No, we make lending decisions solely based on your business information.
Our revenue advances have a flat 6% fee, regardless of the term. We do not charge interest and there are no arrangement fees.
In order to qualify, your business needs to be incorporated in Europe, with a minimum of six months trading history. We have some preferred sectors but will review applications from any sector. To see if we’re a good fit, take our two-minute survey here and we will get back to you within 24 hours.
Our initial survey takes two minutes and we aim to get back to you within 24 hours to confirm eligibility. After collecting data from your payment processor and marketing platforms we can issue funds in as little as two days.
To make a funding decision we need information on your business performance. We do this with information from your sales platform (e.g. Stripe, PayPal) and the marketing tools you use (e.g. Facebook, Google). Before releasing funds, we will also need to verify the identity of you and your co-founders.
The Double Down marketing card is a virtual credit card pre-credited with your advance amount that we issue to new accounts in some circumstances.
Yes, further funding is dependent on repaying the existing advance or your business growing sufficiently to be able to accommodate an additional advance.
We will begin collecting repayments from your revenue at the agreed percentage once you start using the advance funds. This will cease once your balance reaches 0.
Repayments are based on your top-line sales (or net revenue for marketplaces) and are collected on either a weekly or a monthly basis depending on the type of business. The percentage of revenues that you share with us is agreed at the outset.
Yes, there are no charges for repaying your advance early.
If you sell or exit your business while all or part of your facility balance is outstanding, Double Down’s advance would be repaid before any distributions to equity holders are made.
Most businesses choose to repay their advances by sharing 5-30% of their revenues. The percentage amount is agreed individually based on your circumstances.
Access your account in the 'Log In' section of the site, or by clicking here.
Earnings-based financing is a form of non-dilutive funding for entrepreneurs who want to optimise for profitability and who do not want to be forced into selling equity or their company. It exists as an alternative to raising venture capital or angel investment. Advances are made to early stage companies to finance development or to bridge management income while the company grows. Advances are repaid by sharing a percentage of Owner Earnings (a combination of salaries, dividends and retained earnings) above a pre-defined threshold.
It is best used when the business is generating revenue but is still at an early stage. Advances can be used to finance further development of the company or to supplement owner salaries in the early days.
No, never. Part of the purpose of our earnings-based financing structure is to preserve your optionality as a founder to take capital out of your business in whichever structure you like.
No, we will make a funding decision on the basis of your business information.
Our earnings-based advances have a fixed cap, usually between 2-5x. This amount will not increase regardless of how long it takes to pay the advance back. We do not charge interest and there are no arrangement fees.
For earnings-based advances, we look for early revenue generating companies incorporated in Europe. We like to see evidence that you have a growing customer base (even if it’s still small). Our typical advance amount is £25k-£250k but we also consider applications above and below that threshold. We have some preferred sectors but will look at businesses outside of them. To see if we’re a good fit, take our two-minute survey here and we will get back to you within 24 hours.
We aim to provide a funding decision within 2 weeks of receiving your full company information.
Initially, we ask applicants to fill in a brief two-minute survey here to confirm that we’re a good fit. Following that, we will ask you for more information on your business. That normally includes data from your accounting and banking software, a deck (if you have one) or some form of introduction on your company, and a financial model.
Repayments begin once Owner Earnings exceed a predefined threshold and are paid on a monthly basis on the earned amount above the threshold, until the advance is repaid.
Repayments are calculated as a percentage of Owner Earnings above a predefined threshold.
‘Owner Earnings’ are defined as all economic value that accrues to the founders / executive directors of the business – in the form of salaries, dividends, retained earnings etc. We use Owner Earnings as our basis rather than salaries (or any other measure) to preserve your optionality on how you choose to split profit between remuneration and investment.
The threshold we set is to ensure that repayments don’t burden the business in its early days and we only charge a % on amounts above the threshold. We know you need to live off your business profit and in some cases, it may take a year or two until the advance starts being repaid. That doesn’t cost you any more as the fees are set at the outset and we don’t charge any interest. Only earnings from business operations are included in Owner Earnings – we don’t include our advance principal in the calculation because we don’t want to repaid with our own money.
Yes, there are no charges for repaying your advance early.
It shouldn’t do! We accept regular management cash accounting so there is no need to change your method of reporting. Where there are differences of opinion, we fall back on IFRS definitions.
The percentage is agreed individually on each advance but is typically between 20-60% on amounts above the pre-agreed threshold.
Access your account in the ‘Log In’ section of the site, or by clicking here.