Revenue-Based Financing (RBF) is a flexible funding model designed for growing businesses that want capital without giving up equity. Instead of repaying a fixed monthly payment, you repay a small percentage of your monthly revenue—typically 3% to 8%, depending on your advance amount and growth trajectory. When your business has a strong month, you pay a bit more. During slower periods, your payment automatically adjusts downward.
RBF is particularly valuable for founders and business owners who want to scale without diluting ownership. You maintain full control of your company while accessing the capital you need to invest in growth, expand your team, or strengthen your balance sheet. There's no personal guarantee required, no equipment to pledge as collateral, and no ongoing monitoring of your daily transactions.
The funding repays itself as your business grows. As revenue increases, your repayment grows proportionally, but so does your cash flow. Once you've repaid 1.1x to 1.3x your original advance amount (depending on terms), the agreement ends with no ongoing obligations. RBF pairs well with seasonal businesses, product launches, and expansion initiatives where revenue fluctuation is expected and tolerated.