What Is Revenue-Based Financing (RBF)?
Revenue-Based Financing (RBF) is a funding model where businesses repay a fixed percentage of their monthly revenue until the loan + a premium (usually 1.5x to 2x) is paid back.
Unlike traditional loans, RBF has no fixed EMIs and scales repayment based on your actual income. It's a cash-flow-friendly alternative for startups, D2C brands, and subscription businesses.
How Does RBF Work?
| Element | Typical Details |
|---|---|
| Funding Amount | ₹5 Lakh to ₹5 Crore |
| Repayment Method | % of monthly revenue (e.g., 5–15%) |
| Repayment Tenure | Until a fixed return cap is met (1.5x–2x) |
| Collateral | Not required |
| Equity Dilution | None |
| Eligibility | Monthly revenue ≥ ₹2L, min 6 months ops |
Why Choose Revenue-Based Financing?
✅ No EMI burden—pay as you earn
✅ Perfect for seasonal or fluctuating income businesses
✅ Equity-safe funding for startups and digital-first brands
✅ Works even with thin or no credit history
✅ Ideal for D2C, SaaS, eCommerce, creators, and edtech
Documents Required
PAN, Aadhaar of founders
Business registration documents
6–12 months of bank statements
Monthly revenue report / invoices
Website or platform revenue data (Shopify, Razorpay, Stripe, etc.)
Use Cases for RBF
Running paid ad campaigns for D2C brands
Managing stock/inventory restocking
Subscription business scale-up
Product development and marketing
Bridge funding before equity round
Why Vizzve for Revenue-Based Financing?
🔍 Quick eligibility checks using revenue-linked metrics
🧾 Transparent repayment caps, no hidden costs
⚡ Fast onboarding – funds within 3–5 working days
📲 100% digital disbursal and revenue tracking
🔄 Option to refinance or reborrow post-performance review
❓FAQs
Q1. Do I need collateral for an RBF loan?
No. Revenue-based financing is unsecured and linked to your revenue stream.
Q2. What happens if my revenue drops one month?
Repayment adjusts automatically. You pay less when revenue dips and more when it grows.
Q3. Is RBF only for tech startups?
No. Vizzve offers RBF to D2C brands, retail eCommerce, freelancers, creators, and even SaaS platforms.
Q4. How is this different from venture capital?
RBF is debt-based and doesn’t dilute your ownership. You retain full control of your business.
Published on : 24th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed