Revenue-based financing (UK)

Growth capital for revenue-stage startups, where repayments flex with revenue instead of fixed monthly instalments.

Most founders use RBF when revenue is predictable, but they don’t want dilution.

If your revenue is volatile or your cash conversion is weak, fixed obligations can create unnecessary pressure.

Revenue-based financing is a non-dilutive option for startups with stable, measurable revenue. Instead of giving away shares, you repay a percentage of revenue each month. For SaaS businesses, this can be a repeatable funding tool once unit economics and retention are clear.

At a glance

Best for	Startups with predictable revenue (often SaaS) that want growth capital without dilution
Most common use	Marketing spend, hiring, working capital, extending runway without raising equity
Typical ticket size	Often £50k to £5m+ (provider and revenue dependent)
Speed	Often faster than bank loans once metrics are clear
Collateral / guarantees	Often no hard collateral, but terms depend on provider and risk model
Trade-off	More expensive than equity in some cases, but avoids dilution and can be repeatable

Note: terms vary by provider, revenue quality, and risk model. Always confirm repayment caps and effective cost.

When revenue-based financing is not the best fit

You are pre-revenue

If you are early-stage and pre-revenue, public and regional startup loans are usually more relevant.

You have raised equity already

If you are seed-backed and extending runway between rounds, venture debt may be the better category.

You need asset-backed funding

If funding is tied to equipment or infrastructure, asset finance can be more suitable.

Revenue-based financing providers

A practical starting list. As you expand this, focus on eligibility and repayment structure, not just names.

SaaSPredictable revenueNon-dilutive

Provider	Region	Typical ticket	Stage	Needs revenue	Notes
Revenue-based finance providers (UK and Europe)	UK / Europe	£50k to £5m+ (varies by provider and revenue profile)	Early revenue to growth	Yes (predictable revenue)	Often SaaS-friendly. Repayments typically scale with revenue. Terms vary by provider and risk model.
ARR / MRR financing providers	UK / Europe	Varies (often linked to ARR multiples)	Revenue-stage SaaS	Yes (subscription revenue)	More common when subscription metrics are strong (retention, gross margin, churn).
Cashflow-based lenders	UK	Varies	Revenue-stage	Yes	Underwriting often depends on bank feeds, invoice history, and stability of income.

As you add providers, include: revenue requirements, repayment caps, fee structure, data required (bank feeds), and typical approval timeline.

FAQs

What is revenue-based financing?

Revenue-based financing (RBF) is a loan where repayments flex with your revenue. Instead of fixed repayments, you typically repay a percentage of monthly revenue until a cap is reached.

Is revenue-based financing only for SaaS?

No, but it is often a strong fit for SaaS and subscription businesses because revenue is easier to predict and track. Some providers fund ecommerce and other revenue models too.

What metrics matter most for RBF?

Providers commonly look at revenue stability, gross margin, churn/retention (for SaaS), customer concentration, and how reliably revenue converts into cash.

Is RBF better than raising equity?

It depends. RBF can be great when you have predictable revenue and want to avoid dilution. If your revenue is volatile or you need long-term patient capital, equity may be safer.

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