GTM Sauce

Swipe.by · B2B · AI marketing for restaurants

Swap revenue-share loans for fixed monthly debt payments to fund the sales push

Kept 100% equity; fixed payments made cash planning easier

Workedfinancing

What they did

Previously used Stripe loans repaid as a percentage of every dollar collected; with fast growth they repaid in ~3 months, making the effective interest very high. Switched to Founderpath: $450K, ~16-month term, fixed ~$35K/month so cash flow is plannable. Money goes to scaling outside sales (covering the gap when top reps are promoted, Indeed recruiting, market ramp), not ads. Founder frames cost of capital vs. equity dilution as the key comparison.

What happened

Kept equity (founder: '100%'); fixed payments improved cash planning; process was 'extremely quick'

In their words

He Sells AI Door-to-Door. $3.5M ARR, 400% Growth, $0 Ads

Play from 9:28

… for us. And we have a distribution that scales and actually builds a natural barrier of entry. Are you comfortable sharing how you worked with FounderPath? Yeah, for sure. Help us understand why you did that deal. And if you're not using it on ads, where are you spending it to drive growth? We got $450,000. I think that is the right number, right? We have the absolute luxury that our growth is profitable and our unit economics are extremely

7:54

profitable. So I don't need to raise money to keep the lights on. That puts us in a somewhat nice spot. I mean, we actually, all the growth we're doing, we're doing plus minus EBITDA profitable. Some months we lose a little bit money, some months we make a little bit money. But yeah, we primarily use it to scale our outside sales operation, right? Like what our, since we promote so fast, we kind of have a step function. People are really good on the ground. They bring in money, but then we promote them to open up a new market. So we're actually growing market by market. The moment we do that, we lose that person on the ground making money. So we lose that delta on actually cash coming in.

8:25

They do get a base. And now we have to put ads in Indeed to find good candidates, right? We are spending to ramp up the market. Was FounderPath the first outside money you've ever taken? No. So, you know, I started everything raising angel money, angel family offers, some, you know, high net worth individuals. And then we have been actually doing some level of factoring non-diluted funding from Stripe before, right? But so built the company and …

… enabled you to keep more of your equity than otherwise you would have been able to keep? Yeah, 100%. You negotiated with me hard. We gave you a 16-month payback, which gives you more runway to invest in those commissions. Why did you switch from Stripe to FounderPath? I mean, I think the core thing is that when we plan on cash flow, having fixed payments just as you know extremely effective and so so in your case here you like there's 35 grand

9:28

a month it's fixed you know you can plan it exactly with stripe which i mean nothing bad to say about stripe they have been helping us to grow tremendously right it's it's a great company great product and the only challenge is that with stripe we're taking on a percentage of every dollar that comes in paying back which is great if you're somewhat flat in growth but with our you know insane amount of growth. We have been paying Stripe loans back within three months, the full loan, right? Which is pretty insanity if you think about it. Stripe has fairly good terms if you pay them back over a

9:59

year and a half. If you pay them back within three months, time value of money and actual and what was it, internal rate of return for them or whatever, right? Like interest is kind of insane. And so that was the core reason why we wanted to just have more fixed so we can actually plan more and plan more for our not just EBITDA profitability, but real profitability, right? Which in the end matters because finance payments can become a big chunk, …

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Tags: non-dilutive, revenue-based-financing, fixed-payments, fund-sales-ramp