Revenue-Based Financing
Revenue-Based Financing

Institutional Capital
for RBF Platforms

We help revenue-based financing platforms secure warehouse facilities and institutional capital—connecting you with lenders who understand recurring revenue economics and SaaS/subscription borrower profiles.

The Asset Class

Understanding RBF

Revenue-based financing provides growth capital to businesses in exchange for a percentage of ongoing revenue until a predetermined cap is reached. Unlike traditional loans, payments flex with the borrower's revenue.

RBF is particularly suited for SaaS, subscription, and e-commerce businesseswith predictable recurring revenue—making it attractive to institutional lenders who understand these business models.

Key RBF Characteristics

Typically structured as a loan (not a purchase)
Revenue share payments (usually 5-15% of revenue)
Payback cap (typically 1.2x–1.8x funded amount)
Flexible payments tied to business performance
Target: SaaS, subscription, e-commerce
Often clearer regulatory positioning than MCA
Key Differences

RBF vs. MCA

Understanding the distinctions matters for capital markets positioning.

Aspect
Revenue-Based Financing
Merchant Cash Advance
Structure
Often structured as a loan with revenue-based payments
Purchase of future receivables (not a loan)
Repayment
Percentage of total revenue until cap reached
Fixed daily/weekly ACH or card split
Target Borrowers
SaaS, subscription, e-commerce businesses
Retail merchants, restaurants, service businesses
Regulatory
Often subject to lending regulations
May avoid lending regs as "purchase"
Who We Work With

RBF Platforms at Every Stage

From first institutional facility to optimized multi-lender capital structure.

Emerging Platforms

$5M–$30M deployed capital seeking first institutional facility

Growth-Stage Lenders

$30M–$150M deployed ready for scaled warehouse or additional facilities

Established Platforms

$150M+ AUM optimizing capital structure or adding institutional partners

Borrower Segments

RBF Target Markets

SaaS Companies

B2B software with recurring subscription revenue

E-Commerce Brands

DTC and marketplace sellers with consistent sales

Subscription Businesses

Membership and recurring revenue models

Digital Services

Agencies, platforms, and service businesses

Healthcare Tech

Digital health and healthcare SaaS

Fintech Platforms

Payment processors and financial services

Performance Data

Key Metrics Lenders Evaluate

MRR/ARR

Monthly and annual recurring revenue tracking

Revenue Share %

Percentage of revenue collected (typically 5-15%)

Payback Multiple

Total repayment cap (typically 1.2-1.8x)

Payback Period

Expected and actual repayment duration

Churn Rates

Customer and revenue churn of underlying borrowers

Cohort Performance

Vintage-level repayment and default curves

What We Do

RBF-Specific Capabilities

End-to-end execution support tailored to the unique requirements of RBF platforms.

Warehouse Facilities

Warehouse Facilities

Structure warehouse lines with lenders who understand RBF economics—revenue share mechanics, payback caps, and recurring revenue underwriting.

Forward-Flow Agreements

Forward-Flow Agreements

Negotiate ongoing purchase agreements with institutional buyers seeking exposure to RBF assets and recurring revenue streams.

Data & Analytics

Data & Analytics

Prepare RBF-specific data tapes with MRR/ARR metrics, revenue share percentages, payback multiples, and cohort performance analytics.

Structure & Compliance

Structure & Compliance

Navigate RBF structuring considerations—loan vs. purchase treatment, state licensing, and documentation that satisfies institutional requirements.

Our Process

From Assessment to Funding

0101.

Platform Assessment

Evaluate origination model, target borrower segments, underwriting approach, and portfolio performance.

0202.

Data & Materials

Prepare institutional-grade data tape with RBF-specific metrics, cohort analytics, and lender presentation.

0303.

Lender Process

Run structured outreach to warehouse lenders and credit funds with RBF experience and recurring revenue appetite.

0404.

Execution & Close

Manage diligence, negotiate terms, and coordinate documentation to funding.

Facility Range
$15M–$300M+

Warehouse facilities sized to platform AUM and deployment capacity.

Timeline
4–6 months

First-time facilities. Faster for platforms with existing facilities.

Lender Network
Specialized

Relationships with lenders who understand recurring revenue models.

Focus
Recurring

Expertise in SaaS, subscription, and recurring revenue portfolios.

Common Questions

RBF Financing
FAQ

Answers to common questions about securing institutional capital for RBF platforms.

Have other questions? Contact us

How is RBF different from MCA for capital markets purposes?

RBF is often structured as a loan (subject to lending regulations) while MCA is a purchase of receivables. RBF typically has clearer regulatory positioning, which some institutional lenders prefer. The underlying borrower profiles also differ—RBF serves SaaS/subscription businesses while MCA serves traditional merchants.

What size RBF platforms do you work with?

We work with platforms from $5M deployed capital (seeking first facility) to $150M+ (optimizing capital structure). Key factors are data quality, borrower segment focus, and underwriting discipline.

What data do lenders require for RBF portfolios?

Typical requirements include deal-level data with funded amounts, revenue share percentages, payback caps, MRR/ARR of borrowers, actual vs. expected payback periods, and cohort-level performance. We help prepare this in institutional format.

Do lenders prefer RBF over MCA?

Some institutional lenders prefer RBF due to clearer regulatory positioning and the quality of underlying borrowers (SaaS/subscription businesses). However, both asset classes have active institutional buyers—the key is matching your platform with the right lenders.

How long does it take to close a facility?

First-time facilities typically take 4-6 months. Platforms with existing facilities, strong data, and clear borrower segment focus can move faster.

Get Started

Ready to Scale Your RBF Platform?

Tell us about your platform and capital needs. We'll respond within 48 hours with an initial assessment.