Safe-T Group, a global provider of cyber-security and privacy solutions to consumers and enterprises, entered into a revolving line of credit agreement with United Mizrahi-Tefahot Bank, to support the growth of its consumer privacy solutions, in an amount of up to $2 million for a period of 12 months, at an interest rate of Secured Overnight Financing Rate (SOFR) plus 5.5% per annum, to be paid quarterly for the actual withdrawn balance. The credit facility is part of the company’s broader efforts to attract diverse long-term sources of capital while creating non-dilutive financing alternatives. As a part of this strategy, the company plans to work with the bank to extend the credit facility duration upon maturity, and to increase it.

“We are pleased to complete this non-dilutive credit facility that provides our consumer business with financial flexibility. This facility will support our commercialization efforts and growth as we scale up our consumer acquisition program. Furthermore, we believe that securing this credit line from a leading Israeli bank is an important validation of our improved financial profile,” Shachar Daniel, CEO of Safe-T, said.

The credit facility offers a 3x multiple on eligible revenues, is secured against all of the assets of CyberKick, a wholly owned subsidiary of Safe-T, is guaranteed by Safe-T and includes a refundable deposit by the company of $500,000.

The company’s consumer acquisition program is based upon a five-year business model that employs a user lifetime value (LTV) metric. LTV is a calculation of the average dollar amount of revenue anticipated to be received from subscribers over their retention period. According to this model, the company can estimate future recurring revenue based upon the number of users at any given point of time, multiplied by the relevant LTV. Each product produced by the company has an associated LTV metric. Based upon Safe-T’s LTV model, investments into consumer acquisition are targeted to generate at least a 3x return, producing millions in recurring revenues over the following years.