Extreme sport company Ruroc, is looking to broaden their business and move into other product sectors. So do they go to the bank for a loan? Nope. They are raising capital on Crowd2Fund and they are going with a revenue loan.
Ruroc is creator of ski / snowboard helmets that integrate goggles and mask. As a snowboarder myself, this really makes sense to me having put my current helmut to good use in the past. Ruroc is seeking a loan of £150,000 with an interest rate of 10%. The loan will be used to diversify into downhill mountain biking, air sports and more. Presently a seasonal business, moving into other sports categories will help grow the brand and the business. The mainly online company generates £1 million in revenue today with an EBITDA of £131,000. The expected repayment term is for 36 months with £45,000 already committed by two investors.
The company was launched in 2010 and now has over 20,000 users globally. Ruroc states that their helmets have garnered high visibility due to their presence in the Formula One Pit lanes on Sky Sports. Ruroc also notes they have multiple “celebrity fans”. The “flagship” helmet, the RG-1, is patented and prevents fogging with incorporated tech.
Daniel Rees, the MD of Ruroc, believes his company is poised for great things. “The new helmet will help to alleviate the problem that we have with seasonality as it will be certified across a number of sports including road and mountain biking, as well as a selection of other action sports.”
On using Crowd2Fund’s new revenue loan program, Rees states, “Crowd2Fund’s revenue loan was a massive attraction for us as we are a seasonal business and this offers a much easier solution than making fixed monthly repayments.”
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