Glossary · Alternative financing
Revenue-based financing
Capital you pay back as a share of revenue over time instead of giving up equity right away. It can fit businesses with steady sales but uneven venture fit.
Related: Venture debt · Bootstrapping · Monthly recurring revenue (MRR)
A bit more nuance▾
- Cost of capital can be high — compare to equity and traditional loans.
- Less dilution now can mean less upside if you explode — tradeoffs matter.
Go deeper▾
Discussion questions▾
- Is your revenue predictable enough for RBF payments?
- When would equity be cheaper than revenue share over five years?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.