PayChest, Inc. announced that the company has arranged a $500,000 non-dilutive financing with an accredited investor. Under the terms of the agreement, the financing in its current format would involve a five year loan at 10% simple interest with interest payments deferred, capital repayments deferred and profit share payments of up to 7% of EBITDA. PayChest expects to receive the first significant tranche of this phased financing within 2 weeks.

This follows receipt of smaller amounts. The objective of this financing is to achieve product commercialization. Several important aspects make this financing good for the company: It is non-dilutive meaning it does not involve the issuance of shares; Interest payments and capital repayments are deferred to give the business breathing space to increase sales and recycle revenues (less profit share) allowing the business to gain sufficient mass before starting interest and capital repayments; Profit share is ring-fenced around the sanitary products business, both current and future sanitary products.

Any other business PayChest enters would not be subject to profit share under this agreement. With this Agreement in place the company anticipates it will fund the supply of materials, custom machinery, marketing and, initially, receivables from sales.