What is Revenue Based Financing? A Founder-Friendly Guide
Raising capital without giving up equity? It’s possible.
Revenue Based Financing (RBF) is a flexible, non-dilutive capital solution where repayments scale with your company’s revenue. Unlike traditional loans or equity investments, RBF aligns investor returns with your performance — allowing you to grow without giving up ownership or being locked into fixed monthly payments.
In an environment where efficient capital allocation matters more than ever, RBF is emerging as a powerful tool for founders seeking agility while maintaining control over their business.
What is Revenue Based Financing?
At its core, RBF allows companies to raise capital today and repay it over time as a percentage of monthly revenue. There’s no equity dilution and no fixed repayment schedule. Instead, the total amount repaid—typically 1.3x to 1.8x the original funding amount—is directly tied to business performance.
Think of it like a royalty agreement: you share a portion of future earnings until the agreed amount is fully repaid.
How Does It Work?
You raise capital — typically between $500K to several million — based on your financial and business performance.
You repay monthly, usually between 3%–10% of top-line revenue.
Payments flex with your business: built to scale up or down with your monthly earnings.
At Hum Capital, we streamline this process. Our AI-powered screening and underwriting match you with a network of 900+ investors who understand your business. As a result, funding becomes more efficient, equitable, and accessible.
Why Founders Choose RBF
No dilution: You retain full ownership.
Aligned incentives: Payments rise and fall with your cash flow.
Faster funding: Hum AI enables Hum Strategic Capital and other RBF providers to deliver flexible financing in days instead of months.
Data-driven decisions: Investors assess business performance, not just pitch decks.
It’s a particularly strong fit for SaaS, eCommerce, and other recurring-revenue businesses that need capital to grow — without the pressure of giving up a board seat or equity stake.
Is Revenue Based Financing Right for You?
RBF works best for companies with consistent, predictable revenue and a clear path to growth. It’s not ideal for pre-revenue startups or businesses with highly seasonal income.
If you’re scaling efficiently and require working capital that doesn’t force a tradeoff between growth and control, RBF may be the capital solution for you.
At Hum Capital, we help founders unlock smarter funding through data, not warm intros. Want to explore whether RBF is a fit for your business? Discover how much you can raise with Hum Capital — we’ll help you navigate your options.
