Revenue-Based Financing: Growth Capital for Your Business
Are you a business owner looking for funding that grows with your success?
Revenue-Based Financing (RBF) offers a modern approach to capital that adapts to your company’s performance.
Unlike conventional loans, Revenue Based Finance provides capital based on your revenue, with affordable repayments that adjust to your cash flow.
With no requirement to give up equity.
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How Does Revenue-Based Financing Work?
RBF is refreshingly straightforward:
- Apply: Share your financial data through secure connections to your accounting and payment systems.
- Get approved: Receive a funding offer within 24 hours, based on your business’s financial health.
- Access capital: Once you accept, funds arrive in your account within days.
- Repay flexibly: A fixed percentage of your monthly revenue goes towards repayment.
Unlike traditional loans with rigid terms, Revenue-Based Financing repayments flex with your business cycles.
During high-revenue months, you repay more, accelerating your loan clearance. In slower periods, your repayments decrease, easing cash flow pressure.
By combining ecommerce lending with our other offerings, you can benefit from a comprehensive end-to-end solution tailored to your ecommerce needs, which includes:
International and domestic collections
Working capital credit facilities
FX spot and hedging
Why Choose Revenue-Based Financing?
These benefits make RBF particularly fitting for businesses with recurring revenue models, such as e-commerce, subscription services, or SaaS companies.
RBF offers distinct advantages over conventional funding options:
Retain full ownership: No equity dilution means you keep control of your business.
No personal guarantees: Your personal assets remain protected.
Quick access to funds: Get capital in days, not months.
Flexible use of funds: Invest in marketing, inventory, staff, or expansion as needed.
Repayments that match your cash flow: Pay more when business is booming, less when it’s slow.
Is Revenue-Based Financing Suitable for Your Business?
Revenue-Based Financing (RBF) works best for businesses with:
Monthly revenue of £10,000 or more
At least 6-12 months of trading history
Clear growth trajectory
Predictable, recurring revenue streams
And is particularly well-suited for:
E-commerce businesses
Online retailers can use RBF to fund inventory purchases, marketing campaigns, or expand product lines.
Software as a Service (SaaS)
With recurring subscription revenue, SaaS firms can leverage RBF SaaS Finance to fund product development or customer acquisition.
Digital marketing agencies
Agencies with retainer clients can use RBF to hire talent or invest in new technology.
Subscription box services
These businesses can fund inventory and customer acquisition costs with Revenue-Based Financing.
Managed service providers
IT or business service providers with monthly recurring revenue can fund expansion or equipment purchases.
Fintech companies
Use Revenue-Based Financing to scale operations or develop new financial products.
RBF is less suitable for
- Startups with no revenue history
- Businesses with highly seasonal or unpredictable revenue
- Companies with declining sales
- Businesses primarily dealing in one-time, high-value transactions
Let’s Talk!
Product Details
Funding amounts: £100,000 to £2 million, based on your revenue performance.
Repayment terms: A fixed percentage of monthly revenue, usually 5-20%, until the agreed amount is repaid.
Total repayment: Typically 1.2 to 2 times the initial funding, known upfront for complete transparency.
Repayment period: Flexible, often 3-12 months, adjusting to your revenue growth.
Funding Without Interest Charges
One of the most attractive features of Revenue-Based Financing is the absence of traditional interest charges. Here’s how this benefits your business:
Clear Cost Structure
Unlike conventional loans with compounding interest, RBF uses a flat fee model. You’ll know the total repayment amount upfront, providing clarity and predictability for your financial planning.
No Accruing Interest
You won’t face the stress of watching interest accumulate over time as there are no interest charges. Your repayment amount remains fixed, regardless of how long it takes to repay the funding.
Pay Only When You Earn
Since repayments are a percentage of your revenue, you only pay when you’re earning. This aligns the cost of capital with your business performance, reducing financial strain during slower periods.
Potentially Lower Overall Cost
For fast-growing businesses, RBF can be more cost-effective than traditional loans. As you repay faster during high-revenue months, you may end up paying less overall compared to long-term interest-accruing loans.
Simplified Accounting
Without complex interest calculations, your financial reporting becomes more straightforward. This simplicity can be particularly beneficial during tax season or when seeking additional funding.
Flexible Repayment Timeline
The absence of interest means there’s no penalty for taking longer to repay during challenging times. Your total repayment amount remains the same, offering peace of mind and flexibility.
Why Partner with Us?
Deep understanding of growing businesses
Transparent terms with no hidden fees
Ongoing support throughout your growth journey
Quick decisions and rapid funding
Flexibility to adapt to your business needs
Choice of trusted specialist lenders
make contactEven with strong revenue, securing traditional business loans can be challenging if you have a less-than-perfect credit score or limited trading history.
Revenue-based financing offers an alternative path to funding that focuses on your business’s actual performance rather than personal credit or lengthy track records.
This innovative approach allows you to leverage your proven revenue stream to access capital.
Instead of fixed monthly repayments, you’ll repay the funding through a set percentage of your ongoing income.
This model aligns the repayment process with your business’s cash flow, making it a more flexible and accessible option for growing companies.
Need some help?
If you need business finance then a specialist broker is a good place to start. You will get expert help and advice along with a wide range of lenders and solutions to choose from.
To speak with a business finance specialist, please call us on 020 3488 5706
