Revenue-based financing (RBF) is a funding model where investors provide capital to a business in exchange for a fixed percentage of ongoing gross revenues until a predetermined amount has been repaid.
How Does RBF Work?
The company receives an upfront lump sum and then repays a percentage of its monthly revenue until a total repayment cap (typically 1.3x to 2.5x the original amount) is reached. Payments naturally fluctuate with revenue performance.
RBFDefinitionGlossary