What is Revenue Based Financing

Revenue-based financing (RBF) is a funding option where businesses receive upfront capital and repay it as a fixed percentage of their ongoing revenue. Unlike traditional loans with fixed monthly payments, RBF adjusts with the company’s income making it especially appealing for businesses with fluctuating sales.

This type of financing is particularly useful for startups, e-commerce companies, and subscription-based businesses seeking growth without diluting ownership through equity. With repayments tied directly to revenue, businesses can maintain cash flow stability during slower periods while accelerating repayment during high-revenue months. RBF provides a growth-friendly alternative to conventional debt or venture capital, allowing companies to secure capital without sacrificing control or long-term equity.