How is revenue-based financing repaid?

You repay a fixed share of your monthly revenue, higher in strong months and lower in weak ones, until the agreed total (the advance plus a flat fee) has been returned.

Is revenue-based financing better than venture debt?

It depends on the need. RBF is faster, fully non-dilutive, and flexible, but smaller and best for short-term uses. Venture debt provides larger, longer-term capital but usually carries warrants.

Cashflow financing

Revenue-Based Financing

Revenue-based financing (RBF) provides capital that is repaid as a fixed percentage of monthly revenue until a set amount is returned. Repayments flex with performance, higher when revenue is strong and lower when it dips, making it well suited to recurring-revenue and e-commerce businesses.

RBF is fully non-dilutive and typically faster to arrange than traditional debt, with sizing driven by recurring or predictable revenue rather than profitability or assets. It is most often used for shorter-term, returns-generating investments, such as marketing or inventory, where the payback is relatively quick.

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Indicative ticket

$2M-$20M

Quantum: Typically 4-8× monthly recurring revenue
Repayment: Fixed percentage of monthly revenue until the agreed total is returned
Covenants: Usually none; sometimes a simple revenue test
Security: Often unsecured or light security
Pricing: Flat fee on the amount advanced

Indicative only and subject to diligence. Actual terms depend on your business and the market.

Business profile

Who revenue-based financing is for

Recurring or predictable revenue (SaaS, subscriptions, e-commerce)
$2M+ ARR or strong, consistent monthly revenue
Healthy gross margins and low churn
A near-term, returns-generating use of funds

Debt purpose

What the capital is for

Finance customer acquisition costs
Fund inventory ahead of demand
Smooth working capital and seasonality
Bridge to a larger debt or equity facility

Benefits

Why borrowers choose it

Fast: days to a few weeks to arrange
Fully non-dilutive, typically no warrants
Repayments flex automatically with revenue
Not tied to balance sheet assets

When not to use it

An honest word of caution

!When longer-term capital is required
!To finance runway extension for a loss-making core business
!Where there is high churn or risk in service delivery

How it compares

Versus venture debt, RBF is faster and fully non-dilutive but smaller and best for short-term needs. Versus an MRR line, RBF is an advance repaid from revenue, while an MRR line is a revolving facility sized on monthly recurring revenue.

Terms, criteria, and sizing shown are indicative, not exhaustive, and subject to further diligence on the company and its assets.