What is revenue-based financing in simple terms?
Revenue-based financing provides upfront capital that you repay by sharing a small percentage of monthly revenue until a fixed total amount (the cap) is fully paid.
How much does revenue-based financing cost?
Cost depends on the repayment multiple (e.g., 1.2x–1.5x), fees, and how fast you repay. Faster growth can increase the effective annualized cost, while slower repayment reduces it but extends the obligation.
Who qualifies for revenue share funding?
Established U.S. businesses with steady revenue—often $15k+ monthly—clear margins, and verifiable financials. Recurring revenue models like SaaS, subscriptions, and retainer-based services are common fits.
What are typical RBF terms?
Many structures use a 1.1x–1.6x cap, a 2%–10% revenue share, and target a 6–36 month payoff window, with variability based on performance.
What’s the difference between revenue-based financing and equity?
RBF is non-dilutive and repaid from revenue; equity sells ownership and may involve governance rights. RBF suits measurable growth investments; equity suits longer, riskier plays.
Can RBF be used alongside other financing?
Yes. Many businesses combine RBF with lines of credit, term loans, or equipment financing to optimize flexibility and blended cost.
Is RBF a good fit for seasonal businesses?
Often, yes. Payments flex with sales, which can match seasonal peaks and troughs—provided minimum payment clauses are reasonable.
