Funding · Any stage
Revenue-Based Financing: Non-Dilutive Growth Capital for SaaS
RBF is the fastest-growing non-dilutive option for SaaS. Instead of equity, you trade a revenue share for growth capital. This playbook covers when RBF beats a seed round and where it hurts.
Revenue-based financing (RBF) lends capital repaid as a percentage of monthly revenue until a fixed cap (typically 1.3×–2.0× the principal) is reached. It is non-dilutive, requires no personal guarantee, and fits SaaS with predictable MRR and >50% gross margin.
$50k–$5M
0%
2–6 weeks
Best for
- SaaS or subscription businesses with $10k+ MRR.
- Predictable revenue with low churn.
- Founders who want to accelerate marketing spend without dilution.
Not for
- Pre-revenue or lumpy-revenue businesses.
- Low-margin businesses where the revenue share crushes cash flow.
- Companies that need $10M+ — RBF providers rarely go that big.
How it works
- Connect your billing (Stripe, HubSpot, etc.) to the RBF platform.
- Get an underwriting decision based on MRR, growth, and churn.
- Accept a term sheet: principal, repayment cap, revenue share %, term.
- Draw the capital and pay a fixed % of monthly revenue until the cap is reached.
Key metrics
1.3×–2.0×
Effective cost of capital similar to venture debt.
2–10% of MRR
Higher for shorter terms.
12–36 months
Depends on growth rate.
Investor expectations
Providers monitor MRR and churn in real time.
Monthly payments tied to revenue — flexible in slow months, faster in strong months.
Pros
- Zero dilution.
- Fast to close.
- Payments flex with revenue.
Cons
- Effective APR can be high vs bank debt.
- Revenue share reduces cash flow every month.
- Not available for pre-revenue businesses.
Frequently asked questions
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