Growth capital repaid as a fixed percentage of monthly revenue. Payments flex with your business — ideal for seasonal companies and variable-income operations.
Revenue-based financing provides growth capital in exchange for a fixed percentage of your future monthly revenue. There is no fixed repayment term — you share revenue until the agreed total is repaid. Perfect for seasonal businesses, eCommerce, or any company with variable income cycles.
Revenue-based financing prices on a multiple (1.2×–1.6× typical), not an APR. The implied APR depends on how fast you repay — faster repayment = higher implied APR for the same multiple. Pricing also varies by industry because revenue predictability differs.
| Industry | Typical Multiple | Revenue % | Implied APR | Typical Term |
|---|---|---|---|---|
| SaaS / Subscription | 1.20–1.35× | 3–7% | 15–28% | 18–36 mo |
| eCommerce / DTC | 1.30–1.50× | 5–12% | 28–48% | 9–18 mo |
| Marketplaces / Platforms | 1.25–1.40× | 4–9% | 20–35% | 12–24 mo |
| Services / Agencies | 1.35–1.55× | 6–14% | 35–60% | 9–18 mo |
| Mobile Apps / Gaming | 1.30–1.45× | 5–10% | 25–42% | 12–24 mo |
Industry-standard ranges. Actual rates vary by lender, profile, and market conditions; faster repayment increases implied APR for the same multiple.
RBF lenders underwrite to revenue quality, not credit score. The thresholds below are typical; specialty lenders fund outside them at higher multiples.
A typical $200K RBF advance for a SaaS business with $80K MRR. 1.32× multiple. 6% of monthly revenue remitted as repayment. Term: until the multiple is fully repaid (variable, ~14 months at current revenue).
| Component | Detail | Amount |
|---|---|---|
| Advance amount | Approved capital | $200,000 |
| Multiple | Total payback obligation | 1.32× |
| Total payback | $200K × 1.32 | $264,000 |
| Cost of capital | Total payback − advance | $64,000 |
| Monthly remittance | 6% of $80K MRR | $4,800 |
| Estimated payback period | $264K / $4,800/mo (no growth) | 55 months |
| Realistic payback (15% growth) | Revenue growth shortens it | 22–28 months |
| Implied APR (24-month payback) | Annualized cost on weighted balance | ~28% |
RBF vs. MCA — same multiple, different math. An MCA at 1.32 factor with the same $200K advance would require a fixed daily payment over a fixed 9–12 month payback (regardless of revenue), forcing $264K out of the business in 9–12 months instead of 22–28 months. The MCA's implied APR would be 65–80% on the same multiple. RBF's longer, revenue-pegged repayment is what makes the same nominal cost much cheaper in true APR terms.
Both use a multiple (factor rate) on a revenue-share repayment. Differences: RBF terms are 12–36 months vs MCA 4–18; RBF pegs to monthly revenue (or quarterly) vs MCA daily ACH; RBF multiples are lower (1.2–1.6× vs MCA 1.2–1.5× over much shorter terms = much higher APR). RBF underwrites to revenue quality (NRR, churn, gross margin); MCA underwrites to bank statement deposit volume. RBF best fits stable recurring revenue businesses; MCA best fits cash-flow-strong businesses needing speed.
1.20× to 1.60× depending on industry, revenue quality, and growth. SaaS with 110%+ NRR can land 1.20–1.30×. eCommerce typically 1.30–1.50×. Services/agencies 1.35–1.55×. Pre-profitable or thin-margin: 1.45–1.65×.
Typically 3–14% of monthly revenue, depending on industry and advance size relative to revenue. SaaS 3–7%. eCommerce 5–12%. Services/agencies 6–14%. The percentage stays constant for the life of the deal — if you grow, you pay back faster (good for you); if you shrink, you pay back slower (good for you, lender takes the duration risk).
RBF doesn't have a fixed term — it's "until the multiple is fully repaid." Stated maximum terms are typically 24–36 months as a backstop. If revenue is flat or declining, the term extends. If revenue grows, the term shortens. Most deals settle to 12–24 months actual payback.
Most RBF lenders want $15K+ MRR (or $200K+ ARR) to underwrite. Specialty lenders go to $5K MRR for early-stage SaaS. Top RBF lenders (Pipe, Capchase, Lighter Capital) prefer $50K+ MRR for best terms. Below $15K MRR, MCA or microloans often fit better than RBF.
RBF is debt — you pay back a defined amount, no equity dilution. The "revenue-based" piece is just the repayment mechanic. There's no ownership component, no board seat, no equity participation in upside. From an accounting standpoint, RBF sits on the liabilities side of the balance sheet as debt with a variable repayment schedule.
3–7 business days from connected revenue platforms (Stripe, Shopify, QuickBooks) and Plaid bank verification. Lenders run automated underwriting on the connected data. Manual document review is optional and only for edge cases. Funding to your account typically 1–3 days after approval.
Yes — this is one of RBF's structural advantages. Many RBF lenders offer "tranche" structures or graduating advances as you grow revenue. Pay off advance 1, qualify for a larger advance 2 at a better multiple. Some lenders offer concurrent advances if revenue supports the combined payment. Stacking RBF is generally cleaner than stacking MCAs because the per-deal revenue percentage caps total burden.
Revenue drops mean the percentage take stays the same but the absolute dollars drop — payback period extends. Lender takes the duration risk. Most RBF contracts have a maximum term (24–36 months); if revenue can't support repaying the multiple within max term, you'd default. Practically rare because the percentage adjusts naturally and lenders restructure before formal default.
Most RBF allows prepayment, but check whether the multiple is "guaranteed" or "amortized." Guaranteed multiple: you owe the full multiple regardless of when you repay (no savings on early payback). Amortized: paying early reduces the multiple proportionally. Top RBF lenders (Capchase, Lighter Capital) typically use amortized structures with prepayment incentives. Read the contract.
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