Oregon Success Stories
Ruffwear Extends Reach to Fido in the Far East
Business Oregon's export assistance has helped make Ruffwear, the Bend-based outdoor gear maker for active canines, a hit in markets such as Japan.
The Small Business Expansion Program, operating within the OBDF direct loan program, is a new alternate financing solution fit for situations in between "almost bankable" and angel or venture capital deals, similar to mezzanine financing for working capital. This pilot program allows businesses to pay a periodic revenue payment as a percentage of net sales combined with scheduled monthly payments of principal and interest (fixed rate) to accommodate growing companies that may not qualify for traditional financing.
The percentage of sales varies per applicant. Business Oregon seeks to realize a target return on investmentfrom repayment of principal, interest and revenue paymentsover a 3- to 7-year period. Additional payments may be required in event of early payoff or sale of the company. Once the pre-determined return target has been achieved, all payments stop and the company has satisfied its repayment obligations.
The company must satisfy all requirements of the OBDF program including, but not limited to, being a traded-sector business and having significant job creation impacts. Each revenue finance request will be evaluated on a case-by-case basis, but the following will be required, in general:
Revenue financing provides many benefits to Oregon businesses compared to traditional debt and equity financing, including: