FAQs

What's a Revolving Credit Facility?

A Revolving Credit Facility gives the borrower control by allowing to drawdown, repay, and drawdown again. Even better with Vane's RCF product, borrowers can choose to rollover a drawdown instead of repaying it. An RCF is a highly flexible financing tool due to these repayment and re-borrowing accommodations. While there are maturities set for each drawdown (e.g. 30 to 12 days) these can be extended (indefinitely) while there is sufficient receivables collateral to borrow against. By contrast, a term loan is much less flexible and usually has a fixed repayment schedule.

What's the difference between a Receivables Finance Revolving Credit Facility and invoice finance?

Unlike traditional invoice finance facilities, Vane's Receivables Finance solution is a Revolving Credit Facility. Borrowing isn't fixed to debtor payments (collections). Instead, a Vane borrower can choose when to repay a drawdown, so long as the borrowing balance is within the required collateral level. This gives more flexibility and control to the borrower.

What's the difference between the Receivables Finance and Revenue Based Finance products?

Vane's Receivables Finance solution enables businesses to unlock capital from their digital receivables, i.e. earned revenues, whereas Revenue Based Finance enables businesses to unlock capital from future revenues.

Which countries does Vane work in?

Vane support businesses across the globe, including in USA, Canada, UK, Europe, Israel, Hong Kong, Singapore, and Australia.

We have international receivables, can Vane finance those?

Vane finances receivables billed from or governed by the laws of the USA, Canada, UK, Europe, Israel, Hong Kong, Singapore, or Australia.

We have company debt already, can we also work with Vane?

Yes, in some cases some assets can be carved out of Vane's security, in order to accommodate other secured debt facilities.

What determines the cost of finance?

Cost of finance is dependent on a range of factors, including: financial performance, location, revenue model, receivables, use of finance, and others.

Do our customers have to pay Vane instead of our own bank account?

In most cases, Vane does not require borrowers to redirect their customer payments from paying into their own bank account. Some exceptions apply.

Companies at which stage can use Vane?

Companies at any stage can use Vane, from start up all the way to global listed companies.

Companies in which industries can use Vane?

Vane provides finance to businesses across the digital economy. If your business operates a digital revenue model selling services that generate b2b receivables, your company should be suitable for a Vane finance solution. Note, for app developers who generate app store revenues and/or advertising, these would also be considered b2b receivables, even if the end customer is a consumer.

How long does an application take?

Getting started is simple, simply setup an account to submit financial information and connect your accounting software. Typically, Vane can review an application within 72 hours. Following any required clarification of information submitted, or collection of missing information, if approved a term sheet will be presented.

What security does Vane require?

Vane provides secured financing, meaning security is required over assets of the business, especially receivables and cash. In some cases some assets can be carved out, in order to accommodate other secured debt facilities.

Does Vane require personal guarantees?

Vane never requires personal guarantees from borrowers.

Can we increase our credit limit?

Vane typically provides an initial credit limit above the current availability level, meaning there is headroom from the start. If availability increases above the credit limit, borrowers can request a higher credit limit.

Can a Receivables Finance and Revenue Based Finance facility be combined?

Yes, a company can combine both a Receivables Finance and Revenue Based Finance facility, benefitting from the advantages of both types of solutions.

Does a company need to be profitable to use Vane?

A business does not need to be profitable, in fact many Vane customers are still loss-making, typically if they have raised equity investment and are still early or growth stage.