Revenue Based Financing (RBF) in United States
Access non-dilutive capital tied to your revenue. Lean into trusted revenue based financing lenders to fuel growth, provide working capital, and scale your business.
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Quick Turnaround – Get an Answer Faster Than Typical Loan Processes
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No Collateral Required, Profitability Helpful but Not Necessary
Preserve Ownership
Repay Based on Monthly Revenue
Access to Institutional and Small Business Revenue Based Lenders
Apply for Revenue Based Financing Today!
Lending Parameters for Revenue Based Financing
Term Length & Structure
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12–36 months is typical
Lenders can offer extensions
Loan Amount
Starting as small as $100,000
Parameter
Details / Typical Range
Underwriting Criteria
Lenders focus on revenue predictability
Revenue consistency
Customer type, customer diversification, churn rates
Historical and projected growth trend
When revenues are shaky, lender will examine equity cushion and investor backing
Use of Funds
Working capital
Business expansion
Security
Usually unsecured; some lenders will file UCC liens for larger loans but most do not
Lenders’ primary recourse is ability to direct flow of revenue receipts
Covenants
Light financial covenants tied to revenue thresholds or growth metrics
Far less restrictive than traditional debt
Principal / Amortization
Institutional RBF: repayment is a fixed percentage of monthly revenue (commonly 2–10%), with high degree of flex when business encounters soft patches. Repayment until cumulative payments reach payback cap
Time to Funding
Can be funded in as short as 1-2 weeks
3–6 weeks for larger loans
Typical Providers
Top revenue-based lenders include
Institutional revenue-based financing firms
Specialty debt funds
Venture debt providers
Commercial financing shops
Family offices
Eligibility
Small business revenue based financing:
At least $200,000 in annual revenue
Been in business +6 months
Borrower’s credit score matters
Institutional revenue based financing:
$1M in annual revenue, with majority of it recurring
Company can be sponsored or non-sponsored
For both: US, Canada, Australia, or Europe-based
Strategic investments
Interest Rates
Effective APR lands between mid-teens to high twenties
Pricing is based on a payback cap, with adjustors for timing
Small business RBF: can be set as a percentage of revenue or a fixed amount
Loans max out around $10,000,000 as they are not a loan solution designed for the mid-market
Process
Identity suitable revenue-based lenders based on company size and capital needs
Submit requested diligence items including revenue reports, customer breakdowns, historical churn analysis, AR agings, AP agings, and cash collection reports
Evaluate term sheets for debt availability, repayment structures, and covenants
Negotiate terms of loan facility
Complete final diligence and close funding
Who Can Benefit from Revenue-Based Financing?
RBF is best suited for revenue-generating businesses that need growth capital without giving up ownership. Companies are generating revenue, but not yet at a consistent enough pace to commit to a multi-year fixed repayment accompanying typical business loans. Ideal candidates include
Emerging Companies
Companies at the emerging stages of their growth curve who need capital for expansion, marketing campaigns, or hiring initiatives can leverage revenue-based financing to scale operations efficiently. “Emerging” companies are usually characterized by the following: i) have product market fit, but low market penetration ii) have revenues but are unprofitable iii) may not have taken funding from venture capital or private equity, or only taken a small round iv) not a good candidate for traditional bank-issued loans.
Companies with Recurring Revenue
Businesses with predictable monthly or annual revenue, such as SaaS, subscription services, e-commerce, fintech, or data sales, can benefit from repayment structures that align debt servicing with revenue (rather than EBITDA which incorporates the effect of large and lumpy expenses).
No Asset or Asset Light Businesses
Even if your company is a service business and lacks tangible collateral such as accounts receivables, inventory, machinery, or equipment, you can tap into revenue based loans since RBF is not asset-focused financing.
Common Industries
Firms in certain industries are well suited to revenue-based financing lending due to the predictable nature of their revenues. Even in the absence of a master services agreement, the volume and rhythm of their revenue creates a consistent stream.
• Business services
• Digital media
• E-commerce
• Brick-and-mortar
• Fintech
• Trucking & transportation
• Healthcare clinics & dentistry
• Retail
• “Flow” businesses (large number of small transactions)
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Key Elements of Revenue-Based Financing via Accrefi
Accrefi connects businesses with revenue-based financing lenders that match their growth strategy, revenue profile, and risk tolerance. Key options include:
Loan Sizing
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Sized as a multiple of recurring revenue or an average of trailing revenues, rather than EBITDA or asset values.
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Common amounts range from 3–6 months of revenue, depending on retention, margins, and revenue predictability.
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Higher-margin businesses (software, digital services, subscription models) generally qualify for larger advances than low-margin, volatile industries.
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Borrower’s existing debt load and cash runway influence maximum capacity, as lenders must ensure the revenue share can be paid without stressing liquidity.
Repayment Structure
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Loan payments tied to a percentage of monthly revenue, aligning repayment with performance (payments shrink in slow months and rise in stronger months). Structures with fixed monthly remittances also exist—these facilities require less scrutiny in underwriting.
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Most lenders target a defined “payback cap”. For example, the borrower repays 1.2–1.6x the amount originally funded over 12-24 months. As the loan term elongates, the payback cap will increase.
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Repayment continues until the payback cap is reached, subject to a maximum term.
Pricing
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Economic return is driven by the payback cap, not a traditional interest rate; the price tighter for predictable subscription revenue and wider for cyclical businesses.
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Effective APR or IRR often ranges from mid-teens to high-20s, depending on the speed of repayment.
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Pricing adjusts for volatility—higher churn, seasonality, or customer concentration will push caps higher.
Security
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Most revenue based loans are unsecured or partially secured, relying primarily on revenue performance rather than collateral.
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Lenders typically do not file a UCC lien on business assets
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No personal guarantees for institutional revenue based financing solutions, though smaller or non-institutional providers may request them.
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If secured, collateral tends to be “all-assets” with carve-outs, not tied to a specific asset class like equipment or receivables.
Testimonials
Benefits of Revenue-Based Financing
Revenue-based financing provides flexible, growth-oriented funding that aligns with a company’s performance. Key advantages include:
1. Flexible Repayment Structure
This is the single most attractive aspect of revenue based financing: repayments are tied to your revenue, not your profit! The loan is amortized more swiftly when sales are strong and slowly during quiet months, reducing financial stress.
2. Non-Dilutive Capital For Emerging Companies
RBF takes accretive financing solutions designed for midmarket companies and tailors them for small businesses and emerging enterprises, allowing these borrowers to access growth capital without giving up ownership, maintaining full control over business decisions when it matters most.
4. Working Capital Bridge
Even established businesses that have sizable revenues ($10M+) can run into working capital shortfalls. Revenue based loans are an excellent solution because of the speed in which RBF lines can be closed.
5. Covenant Light
Revenue based lenders impose light and manageable covenants, usually tied to revenue amount or growth, because the nature of their capital is to allow the borrower to grow sales. Debt leverage and FCCR covenants are not common in RBF facilities.
6. Scalable Financing
Drawing additional capital from your RBF lender is easier once you’re in the door. Because the underwriting is revenue centric, it can be done quickly and easily, once the lender has verified that the sales are there to support repayment. The intrinsic sizing mechanism of RBF also prevents over-levering a business with these loans.
7. Faster Access to Capital
Did we mention revenue based loans can be closed in a swift windows of time? Small facilities take 2-3 weeks and larger ones in 30 days.
Why Choose Accrefi for Revenue-Based Financing
Accrefi is the only call you need to make when looking for revenue based financing. We do not lend money, but we do connect growing enterprises with multiple SMB and institutional RBF lenders, ensuring our clients don’t get locked into one lenders’ unfavorable terms.
Deep Lender Network
Access over 500 institutional lenders including the top revenue-based lenders across the US, Canada, and Western Europe, including top-tier banks, credit funds, and specialty lenders.
Borrower-Focused Approach
We advocate for your business, expanding options and helping evaluate multiple term sheets to identify the best fit.
Tried-and-True Process
Our process streamlines lender comparisons, documentation submission, and underwriting review, reducing time and friction in securing revenue based loans.
Clarity & Transparency
We are beholden to no lender, only to you as our client. We provide sharp insights on financing solutions to help you objective evaluate repayment terms, lender expectations, and strategic use of funds. We will navigate you through the entire debt fundraising process.
Get Started with Revenue Based Financing
Accelerate growth without giving up equity. Submit your business details today to connect with institutional revenue-based financing lenders nationally. Accrefi evaluates your eligibility, guides you through structuring, and connects you to the right lenders for fast, flexible, and non-dilutive capital.