14 Best Revenue-Based Financing Companies in 2024

For entrepreneurs who are wary of giving up equity in their startups, revenue-based financing offers an attractive alternative. You retain complete ownership of your company and don't have to answer to external investors. It bridges the gap between venture capital and traditional loans, providing funds without the rigidity of the former or the equity demands of the latter. 

However, before choosing a provider, it's important to understand that RBF involves handing over a portion of future revenues in exchange for capital today. This means you need to partner with a reliable lender and fully understand the terms before accepting funding.

Key factors to compare between RBF providers include:

• What percentage of revenue will you be sharing? Standard agreements range from 5-20% of revenue.
• How quickly will you be expected to pay back the advance? Term lengths vary from six months up to three years or more.
• Are there any fees beyond the revenue share percentage? Origination fees, early repayment fees, etc., should be reviewed.
• How flexible are the repayment terms if your revenue is volatile month-to-month?
• What happens if you are unable to meet the minimum monthly payments?

Thoroughly researching providers and reading all agreement terms will ensure you choose the right partner for your startup. Now let's dive into the top companies in this space:

Jump Ahead:

1. Capchase
2. Lighter Capital
3. Clearco
4. Silvr
5. Karmen
6. Booste
7. Wayflyer
8. Outfund
9. Pipe
10. Viceversa
11. Myos
12. Flow Capital
13. re:cap
14. Kapitus

• Headquartered in: New York, New York
• Industries: SaaS
• Check Size: Up to $3 Million

Capchase is a trusted financial partner for SaaS companies offering non-dilutive financing solutions that boost growth without the need to give up hard-earned equity. Their unique “buy now, pay later” solution, known as Pay, provides companies with immediate access to funds from contracts while allowing customers the flexibility of making payments over time. Because of this, Capchase enhances business efficiency, boosts top-line metrics, and provides the breathing room required to close more deals and overcome budget constraints.

Trusted by over 4,000 partners and customers, Capchase holds a significant place in the business landscape.

Learn more by reading our full Capchase review.

• Headquartered in: Seattle, Washington
• Industries: SaaS, Tech Services
• Check Size: Up to $4 Million

Lighter Capital is an innovative financing platform that caters specifically to startups by providing non-dilutive growth capital. Without the need for equity or personal guarantees, Lighter Capital offers flexible financing up to $4 million, allowing companies to fuel their revenue growth while retaining complete ownership and control. This financing is accessible to companies generating at least $200k in annual recurring revenue and possessing a diverse revenue base.

But Lighter Capital's offerings extend beyond just financial support. Alongside providing capital, they also open the doors to an array of added benefits like discounts, networking opportunities, and a wealth of resources aimed at helping startups scale effectively. The application process is designed to be quick and transparent, cutting through the biases often associated with traditional equity fundraising avenues.

• Headquartered in: Toronto, Canada
• Industries: Ecommerce
• Check Size: Up to $20 Million

Clearco is a powerhouse in providing growth capital specifically tailored for e-commerce businesses, allowing them to fund essential sectors such as vendors, inventory, and marketing without needing to give up any equity. With their investments surpassing the $3 billion mark and more than 7,000 businesses funded, Clearco has established a resounding foothold in the financial market.

Their unique approach includes offering fixed payments devoid of compound interest, allowing business owners to pay their invoices without any hassle. 

• Headquartered in: Paris, France
• Industries: Ecommerce, SaaS, Marketplace Sellers
• Check Size: Up to €1 Million

Silvr is a financial institution offering short-term business loans ranging from €10,000 to €1 million ($10,700 to $1.06 million). Ideal for businesses seeking to grow, improve, and tap into new opportunities, Silvr's loans are designed to facilitate meaningful impact. They accommodate the unique needs of each company, and repayments can either be revenue-based or fixed.

Silvr's application process is completely online, streamlined, and remarkably swift, with eligibility checks and 48-hour fund transfers. The organization also offers the support of seasoned financing advisors for additional guidance. 

Silvr requires a minimum threshold of €10,000 monthly turnover and six months of financial records for eligibility.

• Headquartered in: Paris, France
• Industries: Ecommerce, SaaS
• Check Size: Up to €5 Million

Karmen has emerged as a beacon of support in the startup world for growing businesses, offering a wide range of financing solutions. Their flagship product includes short-term loans that span from one to 12 months, providing an immediate cash flow lifeline. Companies can enjoy a seamless online application process and receive a response within 48 hours, with funding potential scaling up to €5 million ($5.3 million).

In addition to short-term loans, Karmen also provides a revolving line of credit and invoice financing options. They recommend companies connect their business accounts to the Karmen platform, which gives them access to bespoke financing solutions specifically tailored to meet growth objectives.

What sets Karmen apart is their transparent cost structure – they charge a fixed commission between 3% and 8% in lieu of interest. This model has already positively impacted over 200 companies that have benefited from their revenue-based financing model, allowing them to secure funds without any ownership dilution.

• Headquartered in: Szczecin, Poland
• Industries: Ecommerce
• Check Size: Up to 150,000 PLN

Headquartered in Poland, Booste is a distinguished financial services provider specializing in ecommerce sellers. They offer loans up to 150,000 PLN ($34,500) designed to support various business operations, including inventory procurement, marketing, and other essential expenses. The process of applying for funding is fast and efficient, with financing typically available within a swift 48-hour window.

Customers have commended Booste for its deep understanding of the e-commerce landscape and its ability to provide a straightforward means of accessing capital. For example, one customer witnessed a whopping 64% increase in their sales after collaborating with Booste for marketing funding. 

• Headquartered in: Dublin, Ireland
• Industries: Ecommerce Sellers
• Check Size: Up to $20 Million

Wayflyer specializes in providing revenue-based financing for e-commerce businesses with an impressive track record of disbursing over $2 billion to more than 1,500 companies. This financing can be used to purchase additional inventory and amplify marketing efforts – all without resorting to equity dilution or personal fund usage.

The application process is uncomplicated and seamless, involving a straightforward connection of business platforms like Shopify to generate financing offers, after which bank and ID details are provided. Post approval, funds are quickly transferred within a span of one to three days.

• Headquartered in: London, United Kingdom
• Industries: Ecommerce, SaaS, B2B, Mobile Apps
• Check Size: Up to $10 Million

Outfund offers a range of financing solutions crucial to the growth of online businesses. By providing revenue-based financing and fixed-term loans that range from $10,000 to $10 million, they address the upfront capital needs of businesses, ensuring rapid access to funding. This enables a smooth application process that allows business owners to receive funding within an astonishing 24-hour timeframe. Customers consistently commend Outfund for outstanding service, seamless onboarding, and a responsive team that's always ready to help.

The funds provided by Outfund can cover various business expenditures such as marketing initiatives, inventory costs, and agency fees. Offering more flexibility than traditional bank loans, Outfund enables businesses to repay based on their revenue, eliminating the need for personal guarantees. 

• Headquartered in: Miami, Florida
• Industries: SaaS Businesses, Direct to Consumer Brands
• Check Size: Up to $100 Million

Pipe presents a cutting-edge capital platform that allows businesses to harness their future revenue streams in exchange for upfront growth funding. This unique platform can be integrated directly into a company's accounting and billing systems, providing seamless access to necessary financing. Pipe's non-dilutive capital solutions allow businesses to scale successfully without surrendering equity ownership.

Through its advanced API, Pipe is looking to empower partners to build custom financing offerings for their own customers. Marketing itself as a flexible and respectful alternative to traditional funding avenues, Pipe is built to hold up any startup company’s autonomy while helping in its growth trajectory at the same time.

• Headquartered in: Milan, Italy
• Industries: Digital Businesses, SaaS Companies, Subscription Based Businesses, Ecommerce Companies
• Check Size: Up to €5 Million

Viceversa is a dynamic growth platform offering revenue-based financing and insightful marketing analytics designed to aid digital businesses in scaling up. They extend flexible funding options ranging from €10,000 to €5 million ($10,700 to $5.3 million) within a remarkably short period of just three days, allowing businesses to invest effectively in critical areas such as marketing, inventory, and shipping.

At Viceversa, companies can access transparent capital and data-driven analytics without relinquishing any equity. Having served over 87 customers across six countries, the platform automates the collection and visualization of marketing data, thereby empowering clients to plan better marketing campaigns and closely monitor key metrics.

• Headquartered in: Berlin, Germany
• Industries: Online Sellers
• Check Size: Up to €2.5 Million

Myos stands out as a unique asset-based finance provider offering working capital loans to ecommerce sellers with the inventory serving as collateral. Offering amounts that range from €10,000 to €2.5 million ($10,700 to $2.7 million), they provide loans without the burden of fixed costs, personal guarantees, or early repayment penalties. Over 1,000 sellers have utilized Myos's services to fund their growth objectives.

Myos adopts a straightforward monthly fee structure based on product scoring, avoiding the complexities of fixed lump sums. Through this approach, Myos offers an innovative and efficient way to secure financing that respects the fluidity and agility of ecommerce businesses.

• Headquartered in: Toronto, Canada
• Industries: Tech, SaaS Companies
• Check Size: Up to $7 Million

Flow Capital offers a range of founder-friendly growth financing solutions encompassing venture debt, revenue-based financing, and SaaS financing. They demonstrate remarkable efficiency in raising funds – anywhere between $1 million and $7 million – in a timespan as short as 4 weeks with flexible structures.

Eligible for financing are businesses generating over $4 million in annual revenue (ARR) located in the US, Canada, or the UK. The funds can be deployed effectively to fuel growth, extend runways, fund capital expenditures, and bridge to profitability while minimizing equity dilution.

• Headquartered in: Berlin, Germany
• Industries: SaaS Companies, Service Companies, Recurring Revenue Businesses
• Check Size: Up to €5 Million

re:cap emerges as a pioneering financing partner exclusively serving SaaS businesses and recurring revenue models with a visionary approach to funding. Recognizing the unique dynamics of these businesses, re:cap offers debt funding solutions that come with a fixed interest rate and flexible payback options based on monthly revenue, allowing for a truly custom funding experience.

Eligibility for re:cap's funding requires a subscription business model with predictable recurring revenue, legal entities based in the EU, and a minimum of six months of runway. Their platform simplifies the funding process, from account setup and data synchronization to approval and fund disbursement, often within two business days.

• Headquartered in: NYC
• Industries: Industry Agnostic
• Check Size: $10,000+

Kapitus is a dynamic and flexible provider of revenue-based financing, catering to businesses of all sizes and industries With a focus on monthly sales, a minimum personal credit score of 625, and the necessity of a bank account for transactions, Kapitus is designed for businesses seeking fast, affordable, and straightforward funding options without the constraints of traditional loans.

Kapitus allows businesses with at least $250,000 in average annual revenue and 2+ years in operation to access funds with a simple 5-minute application process and the possibility of approval within just 4 hours.

Revenue-based financing, as the name suggests, is all about revenues. It's a type of funding where investors provide capital to a business based on a company’s current revenues and what they’re expected to bring in on the top line. 

The company then repays the funding using a percentage of future gross revenues. Usually, the business pays back the amount monthly, and the rate typically varies between 2% to 8%. Repayment continues until the company repays a total determined multiple of the original investment.

Revenue-based financing is an innovative way for businesses, particularly those with strong revenue streams or those that are working towards that point, to secure the funds they need. It's a fairly flexible system free from many of the constraints of traditional loans and doesn't require giving up equity.

This kind of financing system comes with its own set of pros and cons, just like any business decision. In this section, we’ll look at some of the pros and cons of pursuing revenue-based financing for your own business and compare and contrast the benefits and potential drawbacks. 

• The biggest advantage of revenue-based financing is its flexibility. Since the repayments are tied to revenues, there can be agreements where they adjust based on how well your business is doing. This means during a slow month, you'll pay less, and in a good month, you'll pay more. In other words, your loan adjusts to your cash flow instead of straining it.
• Revenue-based financing is less risky for the business owner because it doesn't require personal guarantees or collateral. This means less personal financial risk tied up in your company's success, and it allows for maintaining control of your company. Unlike venture capital, where investors often want a say in the decisions, revenue-based financing allows you to keep complete control over your business.
• The approval and funding process for revenue-based financing can be very quick, sometimes within a matter of days. This is much faster compared to traditional bank loans or even seeking out venture capitalists.

• It could prove expensive. Compared to other financing options, the capital obtained from revenue-based financing may cost more over the life of the repayment term.
• This type of financing requires regular repayments, which could affect your cash flow. Every month, a portion of your revenue will be dedicated to the loan repayment.
• Revenue-based financing may not be an option for all businesses. If your company doesn't have consistent and considerable revenues, you may struggle to find a lender who will fund you on these terms.