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What is Pipe?

Pipe is a trading platform that enables companies to transform recurring revenue into up-front capital.

For founders, entrepreneurs, and business leaders that means more cash flow for scaling a business without restrictive debt or dilution. (Though Pipe can work happily alongside loans or equity as part of your capital stack.)

For investors, Pipe gives you access to a previously untapped asset class—recurring revenue streams with stable yields and built-in diversification.

Whether you’re an entrepreneur or an investor—Pipe is growth on your terms.

How does Pipe work?

For companies with recurring revenue streams, getting approved for a Pipe trading limit takes minutes. Simply complete the sign-up process, connect your existing systems to Pipe, and within hours you can be approved to start trading. 

Once approved, you’ll see your portfolio of customer contracts—aka your recurring revenue streams—ready to trade. You’ll also see the current price for the annualized value of these contracts from institutional investors. With Pipe, it’s as if all of your monthly and quarterly customers paid you up front, overnight.

For institutional investors, Pipe gives you access to the world’s first trading platform for recurring revenue contracts. Learn more about Pipe for investors.

Is Pipe right for my company?

If you have recurring revenue and you’re looking to grow—yes! Pipe is built for companies of all shapes and sizes, from bootstrapped startups to publicly traded firms and everything in between.

We’ve seen SaaS companies, D2C subscription businesses, service businesses, media and entertainment companies, and many others with recurring revenue on our platform.

The best way to see what Pipe can do for your business is to go through our simple sign-up process which takes just a few minutes. There’s no cost to join Pipe and no obligation to ever make a trade.

Is Pipe available to companies based outside the US and UK?

Yes! As long as you have a US or UK subsidiary, we can work with you. To confirm whether your company can use Pipe, go through our sign-up process. If you’re not eligible today, we’ll be glad to notify you as soon as we launch in your country.

Do I need to tell my customers that we’re using Pipe?

Nope. With Pipe, there’s no disruption to your customer relationships. You continue to bill them, they continue to pay you, and you repay your trade through Pipe. Your customers never need to know we’re here—we’re like an invisible growth partner.

How is the payout value for my subscriptions determined?

Bid prices vary based on the health and size of your business, which impacts how much investors are willing to pay for your recurring revenues. We work constantly to get you the most competitive prices possible, and bids typically improve over time as you build trading history on Pipe and grow as a business. The easiest way to get your live bid price is to go through our seamless, commitment-free sign-up process—it takes just a few minutes.

Does it cost anything to sign up?

No, there’s no cost to join Pipe, and no obligation to make a trade once you have an account. Signing up takes just a couple minutes, and you’ll find out how much capital you can access within hours.

How is my trading limit determined?

Your trading limit is based on your recurring revenue and an algorithmic assessment of your business’s health. Limits can range from 25,000 to 100M USD (and the equivalent in GBP). Once you start trading on Pipe, we automatically evaluate your account each week. Your trading limit grows as your business scales—building up trading history is key to increasing your limit over time.

What kind of accounts do I need to connect to get started with Pipe?

Pipe’s algorithm rates your revenue streams and assesses your risk level based on secure live data connections. More complete data connections typically mean better ratings and more capital available for you. 

In order to get the best rating possible, you need to sync your: 

  • Accounting software 
  • Billing subscription manager (if applicable)

and

  • View-only business bank feed

Using a tool that won’t sync with Pipe? Don’t worry. We work with a wide range of software, but our team can also help you upload data by CSV if needed.

Why do I need to connect my accounts before accessing the platform?

Linking your accounts is how we confirm that you’re eligible to use the Pipe platform. By syncing with your systems, we’re able to assess the health and scope of your business and provide you with an initial bid price and trading limit.

What if I’m having trouble connecting my accounts?

We’re here to help! Please contact us any time. Our team can help you create a connection or manually import your data. (We can work with custom systems, too.)

Once I’ve signed up, how long will it take to receive funds?

After your accounts are synced, our approval process is completed within 2 days, though typically it only takes a few hours. Once you’re approved, log in to your dashboard, view your available contracts, and select which you want to trade for up-front capital. Once you finalize the transaction, the transfer to your bank account is instant.

Is Pipe a loan or merchant cash advance?

No, Pipe is different. It's not a loan, merchant cash advance, or traditional revenue-based financing product. We’re a trading platform. Your recurring revenue streams are tradable assets, and Pipe provides a platform for you to trade them for up-front capital—without dilution or restrictive debt. (Read our deep dives into Pipe versus loans and Pipe versus revenue-based financing to learn more.)

Is there a personal guarantee?

No, Pipe does not require any personal guarantees.

What kind of companies get approved to use Pipe?

We work with companies that have recurring revenue—like SaaS companies, D2C subscription companies, and many service businesses, just to name a few.

Companies of all sizes can be approved, as long as you have at least $100K ARR. (And the sky’s the limit: Many companies on Pipe have $100M+ ARR.)

Whether you’re bootstrapped, equity-backed, debt-financed, or publicly traded, to be approved to trade on Pipe, you’ll need a history of solid financial performance along with predictable cash flow and customer metrics (e.g., churn, revenue retention).

How often can I access funds from new or additional contracts?

You can trade as many contracts as you like and as often as you like within the total trading limit provided to you. This limit is automatically reassessed every week and can increase based on your growth and trading history with Pipe.

As your business acquires new contracts, those new revenue streams will automatically appear in your Pipe dashboard and be factored into your trading limit.

When will a new customer contract show up in my dashboard?

Pipe syncs with your systems in real time. As long as it’s up to date in your financial or billing system, you should see it within minutes.

What happens if a contract that I’ve traded churns?

If a customer churns before the end of period you’ve traded (for instance, before 3, 6, 9, or 12 months), you have two simple options: 

  • You can rebate the up-front capital you received on a prorated basis for the churned period. 
  • Or you can swap another contract to replace the churned one.

How does the payment and withdrawal process work?

Pipe automatically deposits the cash from investors into your account the same business day that you make the trade. As your customers pay you each month, Pipe automatically withdraws the payments and distributes the funds to the investors. We’ll notify you of each transaction through the Pipe platform and by email. Your payment schedule matches your revenues (e.g., if you’ve traded quarterly revenue streams your repayment schedule will also be quarterly.

Can I receive more than 12 months of value for a contract?

Depending on your business, it’s possible to trade multiple years of contract value. If you have multi-year contracts, please contact us. Let’s talk!

How do I report the cash flow received from Pipe in company financial statements?

We always recommend working with professional financial or tax advisors to make informed decisions for your business—but here’s some helpful context for your conversations with them.

Most companies on Pipe book the cash received as cash (asset side) and a short-term liability (liabilities side). When the payments related to traded contracts are debited, most companies lower the liabilities balance and book the prorated discount as an interest expense below the line so it doesn’t impact revenue, gross profit, or EBITDA. 

The cash received up front through Pipe typically doesn’t accelerate revenue recognition, and is typically a non-taxable event 

For more clarity, consult your financial or tax advisor.

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