Revenue-Based Financing

A financing model where a lender provides capital in exchange for a percentage of a company’s monthly or annual revenue until a predetermined repayment cap is reached, typically 1.3x to 1.5x the original loan amount. Unlike equity financing, the business retains full ownership, and repayment obligations scale with revenue performancehigher sales mean faster repayment, lower sales mean lower monthly payments. Commonly used by SaaS companies, agencies, and e-commerce businesses seeking growth capital without diluting equity or taking on fixed debt obligations.