--- title: Extend Your Runway with Recurring Revenue Financing url: https://credilinq.ai/blogs/preserve-your-runway-with-recurring-revenue-financing date: 2023-11-07 modified: 2025-09-01 --- # Extend Your Runway with Recurring Revenue Financing Venture capital & private equity investments are slowing down globally. Recent reports by CB Insights highlight how funding has dropped more than 23% QoQ in Q2’22. During the same time period there was 43% YoY decrease in unicorn births. Complementary research by Crunchbase and GlobalData reinforces that global investment winters are in full swing, worrying founders across the board. If you too are worried about extending your runway & ensuring that your business survives these tough times, this blog post is for you. ## What Is Recurring Revenue Financing? Founders are mostly aware of two types of funding options – equity & debt. However, while each of these has its own merits, a third option available to any revenue-generating business is revenue-based financing. In simple terms, [recurring revenue financing](https://www.credilinq.ai/recurring-revenue-financing) (RRF) is a type of funding, wherein you secure a capital amount for your business in exchange for sharing a percentage of your future revenue. To understand this better, let’s take the help of an example. Suppose you have a meal subscription business. You have 1200 paying customers per month who have subscribed to your services. Assuming your average revenue per customer to be $3, your monthly recurring revenue (MRR) will be $3600. Now, you want to expand your business, however, don’t want to dilute equity or pledge personal collateral. You apply for an RRF of $15,000 & agree to share 30% of your future recurring revenue every month. Thus, every month you will repay $1080 to the lender. Considering an interest rate of 3.5% on the capital, you can pay back your entire amount in 14 months. However, the best part is, in RRF your monthly repayment is directly linked to your MRR. That means, during the months you make more, you repay more & vice versa. This takes off the financial strain off your shoulders & makes sure that you focus on growing your business. ## How Can RRF Help You Preserve & Extend Your Runway? Now that you are familiar with the basics of RRF, let’s understand how it can help you preserve & extend your runway, along with its other advantages. #### 1.Ready Access to Capital RF is by far the best option if you want to preserve & extend your runway. The reason behind this is simple – RRF is collateral free & thus you get instantly approved based on past revenue. Once approved, the capital will reach your bank account in 24 hours & you can use this amount for your most urgent spends, such as marketing & inventory. This will not only help you effortlessly preserve your runway but also let you retain ownership & full control of your business. #### 2.Collateral Free Capital One of the biggest advantages of RRF is, it’s collateral free. As you do not need to pledge your personal assets as a founder, you can apply without the slightest hindrance & focus all your efforts on growing your business. Additionally, with RRF you still have the option of applying for other funding instruments such as bank loans which require collateral. Thus, you essentially have access to readily available capital, which doesn’t restrict your future funding rounds. #### 3.Protect Your Ownership Protecting your stake in the business is a top priority for most founders, however equity investments don’t encourage that. With RRF, you can easily protect full control & ownership of your business & readily access the required funds, while retaining the option of future equity investments. Additionally, as you are only pledging your future revenue, you will be motivated to earn more, such that you can ensure a shorter tenure & get approved for top up loans. #### 4.Follow-up Loans Lastly, with [RRF](https://www.credilinq.ai/recurring-revenue-financing) you have the option of top up loans. Essentially once you start paying off your current loan, over the months you will become eligible for top-up loans. Depending on your previous repayment behaviour (as in timely repayment, amount repaid etc), you can get approved for additional capital which will help you further extend your runway. Thus, the sooner you pay off your ongoing loan, the higher are your chances of getting approved for additional ones. ## How to Apply & Get Approved for RRF? Today, getting approved for RRF is simple & straightforward. In order to proceed with your application, the first step is to meet the following eligibility criteria. 1. Your business should be registered & operating in Singapore 2. Your business should have minimum 30% shareholding effectively held by Singaporeans or Singapore Permanent Residents 3. Your business should be operating for at least 2 years. Once you have met the following eligibility criteria, to complete your application, and for any assistance along the way, feel free to reach us at [support@credilinq.ai](mailto:support@credilinq.ai). ## Conclusion Investment winters are difficult times for any company & especially for those which are growing rapidly. Luckily with [recurring revenue financing](https://www.credilinq.ai/recurring-revenue-financing), you can readily access capital without needing to dilute ownership or pledging personal collateral. Now, that you know how to apply for RRF, go ahead & apply today to preserve & extend your runway. Interested in learning more? [Get in touch](https://www.credilinq.ai/get-started) with us today. ## Regulated, Secure, and Built for Scale When you borrow with CrediLinq, you're working with a regulated, independently audited fintech. - **MAS Licensed** — CrediLinq operates under a Capital Markets Services Licence issued by the Monetary Authority of Singapore (MAS), holding us to the highest standards of financial conduct. - **ISO 27001 Certified** — Our information security management system is independently certified, ensuring the data your platform shares with us is governed by verifiable, audited controls. - **Singapore FinTech Association (SFA) Certified** — Certified as a credit assessment and lending provider by the SFA, a recognition acknowledged by MAS, confirming CrediLinq meets the standards expected of a regulated fintech infrastructure partner. - **Trusted by 10,000+ SMBs globally** — Backed by institutional investors including Citi North America, OM/VC, and MS&AD Ventures. ## Related Pages - [A Financial Model for Smarter Inventory Management Across Marketplaces](https://credilinq.ai/blogs/financial-model-inventory-management.md) - [How to Choose the Best eCommerce Business Loan in 2026](https://credilinq.ai/blogs/the-best-ecommerce-business-loan-2026.md) - [Travel Accessories & Outdoor Gear: Managing Cash Flow in Amazon's Shortest Selling Window](https://credilinq.ai/blogs/travel-accessories-amazon-seller-financing.md) - [Why Amazon's Summer Apparel Sellers Never Have Enough Stock](https://credilinq.ai/blogs/summer-apparel-amazon-sellers.md) - [Revolving Credit Facility vs Merchant Cash Advance Explained](https://credilinq.ai/blogs/revolving-credit-facility-vs-merchant-cash-advance.md)