In the dynamic world of startup financing, finding a suitable funding model is the key to sustainable growth and success.

Among the various financing options available, revenue-based financing has emerged as an attractive alternative for many companies. This market is poised to experience meaningful growth, with research firm Allied Market Research projecting the market to grow to $42.35 billion by 2027. 

Different from traditional equity financing or debt, RBF provides a middle ground, offering much-needed capital to scale a business without long-term commitments or loss of control. 

Is this flexible and growing type of financing the right fit for your business? Continue on with this guide to revenue-based financing for startups. 

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What is Revenue-based Financing? 

Revenue-based financing is a type of financing where companies borrow money upfront in exchange for a percentage of future revenue until the amount is repaid. It is akin to debt conceptually in that it includes a borrowing of dollars upfront, with smaller payments over time until a full repayment of dollars is reached. 

In many cases, the smaller payments over time take the form of a percentage of revenue rather than predetermined fixed-interest payments.

This financing model has roots in the US and European markets but has recently begun to resonate in other regions like India, Singapore, and Latin America. 

Types of Revenue-based Finance

There are two types of RBF arrangements, characterized by their repayment styles.

The first style is a Variable Collection arrangement. In this format, a business receives upfront funding and pays it back over time up to a predetermined ratio - for example 1.2x - with payments based on a fixed percentage of future revenue. There is no defined timeline on which the loan is paid back, rather the amount of future revenue dictates repayment speed.

The second style is a Fixed Term arrangement. In this format, a business receives upfront funding but pays it back over a defined time frame. A common example may be securing funding upfront in exchange for a 10% fee. In a defined time frame structure, a lower term typically carries a lower fee. 

Revenue-Based Financing Example

Imagine this: you’re the founder of a fast-growing software business LemonadeStand, which you built from the ground up. In your first year, you were able to establish a client base and your business generated $1mm annual recurring revenue (“ARR”). You were able to fund the first year of operations with money you invested alongside a business partner, friends, or family. 

Now it is year two and you see significant growth potential in the future. Growing the business will require more money to fund operations and investments in LemonadeStand. You want to retain ownership of your business as it grows. 

If you use a revenue-based financing arrangement you may borrow cash against your recurring revenues. For example, you might borrow $100,000 todayfor a 10% fixed fee, with a repayment term of 12 months. Your cash flows would look something like this.

Each month you repay 1/12 of the amount + fee - so $110,000 / 12. Each month you may also generate an increasing revenue, due to the early infusion of growth capital.

Some revenue-based finance providers use a model where customers repay a percentage of monthly revenue. For example, they may pay a fixed 15% of revenue every month, until they have hit a total repayment up to 1.2x of the original borrowed amount.

Both repayment models rely on funding against future recurring revenue.

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Building Blocks of Financial Analysis

Before diving into more details on revenue-based financing, let’s begin with a few basic concepts that will help inform thinking about financing decisions. 

Debt vs. Equity

A simplified balance sheet for a business includes some quantity of assets such as inventory, accounts receivable, and equipment, funded by some quantity of debt and equity. 

Equity refers to ownership in a business. 

Equity holders face the highest risk of loss as they are repaid after debt holders in bankruptcy. Conversely, they have the highest upside because they can capture the increase in value of a business as it expands. 

Early-stage startups tend to face more uncertainty but also have higher upside as they could grow two times, five times, 10-fold, or more. This concept of upside potential is why equity tends to be a better fit for financing early-stage businesses. Furthermore, raising equity financing dilutes, or reduces ownership of, the business for existing owners. 

Debt refers to dollars loaned to a business that must be repaid later. 

Debt holders face a lower risk of loss as they are repaid before equity holders in bankruptcy. Conversely, they have a lower upside as, simply speaking, their upside is limited to the interest rate on the loan. 

With limited upside, debt investors tend to focus more on reducing the risk that they are not paid back. Mature businesses with proven, stable, and predictable cash flow generation are more likely to repay dollars borrowed and therefore tend to be a better fit for debt financing. 

Raising debt is non-dilutive to equity holders but can be more challenging to access for early-stage businesses. 

Interest rates

In the United States, interest rates are set by the Federal Reserve using their monetary policy framework. The Federal Reserve sets the Federal Funds rate, which represents the cost of borrowing dollars overnight. 

The Federal Funds rate is calibrated to help the Federal Reserve achieve its dual mandate of price stability and maximum employment, or in simple terms, to keep the economy running at the “right temperature”. The Federal Reserve Bank of San Francisco expands further on the basics of monetary policy in their piece titled What is the Fed: Monetary Policy.

While not directly set by the Federal Reserve, interest rates on US Treasury bonds (let’s take a bond maturing in five years for example), can be crudely thought of as the average expected Federal Funds rate over the next five years. 

Note that this is a simplified but useful way of thinking for our exercise; we ignore technicalities such as term premium which the Wall Street Journal describes as an “unknowable number.”

Let’s say outstanding market rates on a 5-year Treasury bond are 6%. An investor can earn a riskless 6% annual return by purchasing a US Treasury bond, which represents a loan to the government. The US Government is the sole creator of dollars and has no risk of default. 

Therefore, a rational investor would be unwilling to lend to a risky entity below 6%. This is a crucial concept and is why Treasury rates, commonly referred to as “risk-free rates” are so important–they set the baseline borrowing cost for the entire economy. 

Cost of capital

How can we think about the cost of capital (debt and equity)?

When approximating the cost of capital, it is helpful to look at an investment in debt or equity from the lens of an investor. Investors seek to deploy capital to earn a return at the risk of losses. The expected return on an investment must compensate an investor for the risk they take. 

Let’s begin at the bottom of the risk curve with debt.

Cost of debt

As discussed earlier, a rational investor with a dollar to lend will be unwilling to lend at a rate lower than the risk-free rate. When thinking about how much additional return one would need to be compensated for lending to a risky entity, the question to ask is “What is the risk that I am not paid back?” There are a few key factors to be aware of here:

Ability to repay: generally, a track record of healthy business operations and reliable future cash flows are indicators of ability to pay back borrowings. Investors will evaluate these factors and assess a premium in the form of higher interest rates to compensate for the credit risk they take. This is why debt tends to be a good fit for mature businesses as they can access capital at a relatively low cost. 

Security: there are other tools to reduce credit risk therefore lowering interest rates such as pledging assets such as inventory, accounts receivable, or property. This is known as “security”, which provides the lender with something to sell if the borrower defaults. 

The most common example is a mortgage loan, where a borrower agrees to hand over their home to a lender if they default on their mortgage payment. In general, debt can take the form of unsecured or secured.

Seniority: seniority refers to the “place in line” of a lender in a bankruptcy scenario. The most senior debt holder will be paid first and therefore has the lowest risk and will charge the lowest interest rate. Layering, or different levels of seniority, can be used to match investor preferences with risk tolerance. 

Typically bank debt will be senior, while private investors may have a higher risk tolerance and invest lower in the capital structure with instruments such as mezzanine and venture debt. Combining different debt facilities can allow a company to optimize its cost of debt capital while avoiding dilution.

Cost of equity

Academics and finance professionals alike have spent countless hours coming up with ways to estimate the cost. However, given the number of future unknowns (will people buy a product in 40 years?)–it’s at best an educated guess. 

Conceptually, the value of an equity investment (or “cost” of selling equity for a founder) can be thought of as the expected annual return of the business. Businesses generate return to shareholders through either an increase in the value of the business or by payment of dividends to shareholders. 

Early-stage companies do not pay dividends so value creation occurs through growth in business value. Conceptually, the value of a business today is the sum of all future cash flows it is expected to generate, discounted to today. 

The success of a business and therefore its cash flows in 40 years are highly uncertain (think: will my software have 0, 10k, or 10mm customers in 40 years? Will the annual subscription rate be $0, $10k, or $10mm?). It could grow 100x or be worth nothing–there is a tremendous amount of uncertainty.

An early-stage business carries high risk, but also high reward. A growing startup could 100x in value, therefore investors who see potential in a business may see the potential for extremely high annual returns. 

A debt investment would have capped upside with high risk, while an equity investment allows an investor to participate in that high growth potential. This risk/reward profile for an early-stage business is precisely why their equity cost of capital is so high; when you sell a piece of your business you are selling a piece of the potential 100x return. 

That being said, equity investors are also providing capital at the riskiest stage of the business so you are harvesting the value of equity capital at its peak. Raising equity early on–complemented by some debt and increasing quantities of debt over time–is crucial for optimizing costs, laying off risk, and fueling the growth of the business. 

Key takeaways on financial analysis: 

• So-called “risk-free” rates set the baseline cost of capital in the economy
• Equity tends to be more “expensive” capital and a better fit for pre-product and pre-revenue companies
• Debt tends to be “cheaper” capital and better-fit for post-product and post-revenue companies
• Debt is non-dilutive capital

Now, on to revenue-based financing! 

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So, How Does Revenue-based Financing Work?

Revenue-based financing's core appeal or USP lies in its speed to funding, repayment structure, and equity-protection offerings. 

A company that pursues revenue-based financing as a form of funding must be generating revenue. The company is funded upfront based on that recurring future revenue flow.

Here's a deeper dive into how it works.

Initial Agreement 

The foundation of RBF is the initial agreement where companies receive an upfront capital infusion, which is not a loan but an advance against future revenues. No traditional debt or equity is exchanged, making it a less dilutive financing option. 

The provider of the funding will set terms including the cost or rate of the funding.

Revenue-Based Repayment

Post capital infusion, companies commit to repaying the upfront funding - generally on a monthly basis. Depending on the funding provider, the revenue may either be repaid as a set amount, or as a fixed percentage of the company’s monthly revenues. 

The amount or percentage is pre-agreed, ensuring transparency and alignment.

Cap on Repayments 

Repayments continue until a predetermined cap is reached, ensuring no indefinite repayment cycle. These repayments are commonly over six months to one year, depending on the customer’s needs, the amount, and the funding provider.

Additional Funding 

Many companies who pursue RBF as a funding path will take multiple financings from their funding provider. Either during the term of the first funding repayment or afterward, a company may choose to top-up its total funding amount.

No Collateral or Equity Exchange 

RBF does not require companies to put up assets as collateral, reducing the risk and keeping assets secure. There is also no exchange of equity.

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Revenue-based Financing Examples & Use Cases

The adaptability of Revenue-Based Financing makes it a favorable choice for various companies. Predominantly, businesses with recurring revenue models commonly find RBF  fit their financing needs. 

RBF provides a capital infusion to companies at various stages, whether they are early-stage startups or well-established entities looking to expand. 

Revenue-based Financing for Startups 

Startup companies generally have little to no operating or credit history. This makes it challenging to secure traditional financing such as bank loans or lines of credit. RBF is a good fit here because lenders can look at a short window of revenue history and future projections to make a loan.

For example, Wing, a thriving marketplace for virtual assistant services, achieved 210% growth using an RBF facility from Efficient Capital Labs. In mid-2023, Wing took $500,000 of financing from ECL. Later that year, Wing took an additional $900,000 of financing. They took this funding and put it straight into delivering results through marketing. 

Wing was able to reach new markets and tap into fresh user segments. Wing hit a 210% annualized growth rate in the months following its financing from Efficient Capital Labs. The investment of the dollars in revenue generation helped Wing grow sustainably.

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As a rapidly growing and VC-funded startup, Wing also plans to raise their Series A. Revenue-based financing is helping Wing to bridge the gap.

The right partnership can be the difference between stagnation and rapid growth for a startup. For Wing, financing from Efficient Capital Labs enabled the company to invest in results.

Read more on how Wing achieved 210% growth

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Revenue-based Financing for SaaS Companies or Subscription Businesses

The predictable revenue streams of SaaS companies align well with the RBF model, making it a popular choice in this sector. From the lender's perspective, the predictable revenue stream and customer base make the underwriting easier. 

From the borrower's perspective, making repayments tied directly to earned revenue is helpful in managing timing mismatches associated with subscription inflows and fixed expense outflows. Many SaaS companies operate with monthly or annual subscription models, making their growth closely aligned with RBF. 

Revenue-based Financing for Ecommerce

Many e-commerce businesses have recurring revenue similar to a SaaS business including some which offer subscription models directly to customers. These companies are often able to leverage RBF to fuel their growth and expansion. The cash flow timing piece here is particularly useful, similar to the SaaS example. 

Revenue-based Financing for Service Firms

Service firms such as web development agencies, tech development agencies, IT outsourcing companies, and application development agencies can be a great fit for the RBF structure. Their steady recurring revenue gives confidence to the lender of repayment in the future. 

In this case, RBF can be used to monetize future income today to manage operating expenses or to spend on business growth. 

Revenue-based Financing for Gaming Companies

Gaming companies can be an excellent fit for the RBF structure as well. They may face timing mismatches where expenses are high but revenue is lacking pre-release. RBF allows these businesses to pull cash forward which will be earned post-release to fund development and operating expenses. 

Read more on the best uses for RBF here.

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Revenue-based Financing vs Other Financing Options 

Before making a decision it is important to understand the options available to you to make the optimal decision.  

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What are the financing options available to an Early Stage – Series A founder?

Startup founders will have a few options for funding–including bootstrapping, raising funds from friends and family, and crowdfunding–and for larger amounts: Venture Capital, Venture Debt, and traditional Bank Loans. Each funding type has its own advantages and disadvantages. 

The below table lays out – at a high level – the financing options most commonly available to early-stage businesses.

Advantages of Revenue-based Financing 

RBF stands out for its flexibility, alignment with business growth, and equity preservation. It works best for founders who are looking to prioritize the following aspects of business growth:

1. No Equity Dilution: Venture Capital leads to equity dilution, often of 20%+ of the company’s shares in each round. Venture Debt also tends to include the option for the lender to purchase shares at a pre-agreed price. In comparison, RBF allows founders to retain control and ownership.
2. No Interest Accumulation: Unlike Venture Debt or Bank Loans, RBF does not accumulate interest, providing a more predictable repayment pathway. There is a transparent and predetermined fee for the funding.
3. Alignment with Business Growth: RBF investors enable companies to grow flexibly. Often Venture Capital funding comes with growth targets and other requirements that may not align with a founder’s own judgment about the pace at which their company should grow. Companies that take RBF can extend their runway on their own growth terms. 
4. Speed of Funding: More traditional funding sources like bank debt, venture debt, and equity often require significant red tape from lenders in the form of lengthy due diligence processes, legal documentation, and more. This can be both cumbersome and time-consuming, taking up to 2-6 months. RBF on the other hand can allow businesses with access to funding much more quickly, with an underwriting process of just 1-3 weeks. ECL offers a rapid, simple, and transparent process, ensuring its partners get the access to funding they need within 72 hours.
5. Preservation of Control: Founders maintain control and decision-making power with RBF, unlike some VC arrangements that may require board seats or influence over major company decisions.
6. More Affordable Than Equity Funding: In general, equity funding from venture capital firms has a higher cost of capital than an RBF agreement. Early-stage startup equity is highly valuable given its future growth prospects. The cost of an RBF is more debt-like, but with increased flexibility. 

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Revenue-Based Financing Limitations: ‍

Despite its many advantages, RBF structures can have limitations, depending on your business. 

• Funding amounts: The maximum funding amounts available through an RBF can be lower than venture capital. 
• Requires recurring revenue: Given that the lender’s risk sits with future revenue streams, RBF lenders will be keen to see a brief history of revenue and prefer recurring revenue such as subscription-based contracts to mitigate repayment risk. However, many SaaS startups leverage a subscription-based recurring revenue pricing model for their software which positions them well for this type of financing.

Fortunately, working with a trusted lending partner like Efficient Capital Labs can assist in mitigating these limitations and drive the most value to your business. ECL has financed over $30M to SaaS startupsM to date, with over 70% of customers coming back for additional funds. 

Calculate your funding eligibility in the US‍

Evaluate your funding eligibility in India‍

Venture Debt Financing

Venture debt is a form of debt financing provided by the venture capital complex as opposed to the traditional banking system. Venture debt providers are sophisticated institutions with a higher risk appetite vs. banks and more flexibility in transaction structuring and seniority. 

Venture debt can come in many forms such as subordinated loans or asset-backed credit facilities.

Pros: 

• Permanent capital: Because of their pool of long-term capital and institutional nature, venture firms can offer longer-term debt financing for borrowers who require arrangements greater than six to 18 months. 
• Flexible transaction structures: Venture debt providers focus on the startup landscape and therefore understand the changing needs of growing businesses. Their expertise and capital base allow them to be flexible in structuring terms, particularly relative to traditional bank loans. 
• Institutional partners: Venture debt providers are investment firms with deep industry and capital markets knowledge. This makes them ideal partners for businesses with complex needs such as specialty finance startups whose inventory may be financial products. The complexity of these businesses requires a sophisticated partner to understand the underwriting risk and provide well-priced capital. 

Cons: 

• May require warrants: Venture debt providers may seek additional compensation for the risk on their loans. Warrants may be embedded in financing agreements as additional compensation, giving the lender an option to purchase a portion of the borrower's stock at a predetermined price in the future. This allows venture debt firms to participate in the equity value upside but is dilutive to funders.
• Higher interest rates: Given their subordinated position in the capital stack vs. a senior lender, venture debt firms may charge higher interest rates to compensate for their underwriting risk. This can result in higher interest rates for borrowers.
• Could require collateral: Venture debt firms may seek additional protection on their loans through collateralization, which means the borrower will be required to pledge assets that may be sold for the benefit of the lender in case of default. This mitigates risk for the lender which can reduce borrowing costs However, it requires an encumbering of assets which can reduce future flexibility for the borrower and lead to legal costs and ongoing collateral reporting–which can be burdensome to a startup.

Venture Capital (Equity)

Venture Capital (“VC”) firms are investment firms that specialize in startup investments. These firms provide capital to startups in the form of equity, or direct ownership, in the business. 

The venture capital market is deep with many well-known players such as Sequoia and Andreessen Horowitz. 

Pros: 

• Deep market: The VC market is deep, with the Financial Times reporting a total of $67bn raised by US VCs in 2023, though this represents a 67% drop from the$173bn raised in 2022. This market depth can allow startups to secure large slugs of capital early in their growth stage.
• Network effects: Partnering with the right VC firm can accelerate a startup’s growth through the network of connections and institutional knowledge held by high-tier VC shops. Quality VCs know the startup market well and can connect business owners to peers, customers, and new investors.

Cons: 

• Loss of control: In exchange for their equity funding, VC firms may ask for a board seat and seek to make operational changes in the business. Founders sacrifice total control over the direction and execution of their business strategy.
• Higher cost of capital: As we discuss at length in the “financial analysis building blocks” section, equity carries the highest cost of capital relative to alternative financing and debt. Raising VC funding involves selling chunks of equity when it is at its most valuable given the growth potential of a startup. 

Bank Loans

Bank loans are the simplest form of small business financing. A bank loan involves securing debt capital upfront from a bank, in exchange for fixed interest payments over time.

Pros: 

• Cost of capital: Given its seniority in the capital stack, bank debt provides the lowest cost of capital relative to venture capital. However, banks look for businesses with strong operating and credit histories, which may make this market inaccessible for startups.
• Fixed terms: The amount borrowed, interest rate, payment date, and the amount repaid are all known to the borrower before the inception of the loan. For a business with steady cash flow and no large working capital swings, this can make financial planning easy and transparent.

Cons: 

• Requires operating and credit history: Banks have a low risk appetite and seek to make loans to low-risk businesses. As a part of their underwriting process, they will take a deep look at operating and credit history to ensure a high likelihood of repayment. This means that approval rates can be low for early-stage startups.
• Lack of flexibility: Those same benefits associated with fixed terms discussed in the pros section can be challenging for startup companies. A SaaS business with recurring subscription revenue may have cash inflows concentrated around certain dates throughout the year, making servicing fixed quarterly interest payments challenging. 

Bootstrapping

Bootstrapping refers to founders funding their businesses out of their own pockets. This is the most common way for startups to, well, start, and it allows founders to retain complete control of their company.

Pros: 

• Retain control: Bootstrapping keeps ownership in-house for the founder. Founders can make decisions without the influence of external investors and participate in 100% of the upside growth of the business.
• Financial Discipline: Without external funding, entrepreneurs are forced to be frugal and make careful financial decisions. This often leads to a more disciplined approach to spending.
• Flexibility: Bootstrapped businesses have the flexibility to pivot in terms of business strategy quickly. They can shift on the fly to market changes without the need for approval from external investors.

Cons: 

• Dependency on Cash Flow: Bootstrapped businesses rely on their cash flow heavily to sustain operations. This lack of buffer makes them vulnerable during economic downturns.
• Slower Growth: Without external funding, growth may be slower compared to businesses that have access to substantial capital. This can create a competitive disadvantage where competitors with more funding might be able to outspend or out-compete on price vs. bootstrapped businesses.

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ECL's Approach to Revenue-Based Financing 

Efficient Capital Labs is a revenue-based financing provider. They offer funding to SaaS businesses that operate in the B2B sector. They lend out of their own $100M debt facility, which enables them to offer low rates and flexibility in their funding.

Their customers range from early-stage startups to growth-stage ventures. ECL has a significant presence in funding global SaaS companies. Many of these companies have an operational base in a country like India or Singapore and generate revenue from other markets like the USA.

ECL’s ability to underwrite all the global sources of revenue a company has is a huge differentiator. Here’s a glimpse into what makes ECL’s Revenue-Based Financing model stand out.

Tailored to Growing and Global SaaS Companies

ECL's Revenue-Based Financing model is tailored to meet the needs of high-growth, global companies. 

They are the only RBF provider that can underwrite a customer’s revenue across all markets that it operates in. They also have customers that operate in one single market, and their SaaS-based underwriting model is built to give all customers the best rate they can offer.

The cloud-based lending platform was built to make applications, receipt of funding, and repayment of funding easy. Automated fund transfers and integration with the data sources that are used to make funding decisions (for example, Plaid, Quickbooks, Zohobooks, etc.) can save customers’ time and energy.

Lending Their Own Capital

ECL distinguishes itself in the Revenue-Based Financing space with a unique approach built for high-growth companies. 

By lending from their own $100 M capital facility, they offer better rates–ensuring lower capital costs for customers. Many players in the space offer a “revenue trade” model. In this model, third-party players are funding a company’s revenue. This model gives customers lower predictability over rates. 

Additionally, the self-funded model provides certainty of funds, offering a reliable source of capital whenever needed. With an internal capital pool, ECL enables quick processing and fund disbursement, accelerating its partners' growth journey.

Our debt facility is secured in US dollars, so they can also offer lower rates than many regional providers.

Speed and Transparency in Underwriting

ECL offers a streamlined 3-day underwriting process, ensuring swift processing from application to disbursement. 

They prioritize transparency in their terms and conditions, ensuring all partners are well-informed and comfortable with the agreement.

Additionally, their team of experts is always available for personalized consultations, guiding you through every step of the financing journey.

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Is Revenue-Based Financing Right For Your Company?

Determining the right financing option is a pivotal decision for any company. Revenue-based financing, with its unique structure, offers a compelling alternative. 

Here's a framework to help ascertain if RBF is the right fit for your business.

Key Questions Startup Founders Should Ask

• Revenue Consistency: Does your company have consistent or growing revenues supporting RBF repayments?
• Growth Trajectory: Is your company on a growth trajectory where an infusion of capital can accelerate growth?
• Equity Preservation: Is retaining equity and control over your company a priority?
• Speed: Would you benefit from the ability to access funding at short notice?
• Long-term Vision: Are you seeking a financing partner that can provide additional tranches of funding at regular intervals?

Qualitative and Quantitative Factors to Consider

• Market Position: Assess your market position and how RBF can bolster it.
• Financial Health: Evaluate your financial health and the impact of RBF on your cash flow.
• Cost of Capital: Understand the cost of RBF capital compared to other financing options.
• Strategic Alignment: Ensure that the RBF model aligns with your strategic goals.
• Return on Investment (ROI): Project the ROI on the capital infusion through RBF.

How to Assess if RBF is the Right Financing Option

• Consult with Financial Advisors: Engage financial advisors to analyze the suitability of RBF for your company.
• Analyze Past Cases: Study past cases of similar companies who opted for RBF and the outcomes they experienced.
• Engage with RBF Providers: Discuss your scenario with RBF providers like ECL to get a tailored assessment.
• Financial Modeling: Run financial models to project the impact of RBF on your company’s finances.
• Peer Consultation: Consult with peers in your industry who have experience with RBF.

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More about Revenue-based Financing

We’ve covered a lot of ground on RBF. Let’s discuss a few more questions one may have. 

What is the rate for revenue-based financing?

The rate offered to a company depends on a number of factors: the company’s level of risk, the strength of a company’s future recurring revenues and market-based factors.

What is the revenue-based financing model?

The revenue-based financing model refers to a financing arrangement in which a business secures capital upfront on the basis of its future recurring revenue. ECL offers a fixed fee of 10-12%, repaid across 12 months.

How much funding can a startup get?

The amount of funding startups can secure varies by RBF lending partner. ECL provides funding of $25k to $1.5M from its $100M debt facility.

Who can benefit from revenue-based finance?

Any business with recurring future revenue looking for flexible and non-dilutive growth capital can benefit from an RBF structure. In particular, early and growth-stage businesses with recurring revenue profiles can be an excellent fit. 

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Work with the Best Revenue-based Financing Company

Revenue-based financing is a powerful tool that can accelerate growth at a low cost for growing companies. Efficient Capital Labs is a leading RBF provider with an experienced team to help you make a tailored assessment and grow your business.

ECL boasts a $100M debt facility with US-based rates and flexible funding. The platform’s top-tier risk team and AI-enabled underwriting allow them to make extremely competitive offers to customers. Plus, with a global risk model, cross-border ventures can quickly access both USD and INR–with more currencies coming soon.

ECL champions the fundraising experience for SaaS Businesses.

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