Growth Finance

Revenue-Based Financing UK 2025: Complete Guide

Revenue-based finance (RBF) lets you borrow against future revenue and repay as a % of monthly sales. Perfect for SaaS, e-commerce, and subscription businesses seeking growth capital.

£10k-£5m

Funding range

2-15%

Revenue share

1.3-1.8x

Repayment cap

1-2wks

Approval time

What is Revenue-Based Financing?

RBF is equity-free growth capital where you:

Receive lump sum (£10,000-£5,000,000)

Repay as 2-15% of monthly revenue

Repayment amount flexes with sales (more sales = pay more, less sales = pay less)

Total repayment capped (typically 1.3-1.8x amount borrowed)

Real Example

Borrow £100,000 with 10% revenue share and 1.4x cap

Total Repayment

£140,000

If revenue is £30,000/month

Pay £3,000/month

(repaid in 47 months)

If revenue drops to £15,000/month

Pay £1,500/month

(Automatically)

Who RBF is Perfect For

SaaS companies:

Predictable recurring revenue

E-commerce businesses:

High growth potential

Subscription services:

Monthly recurring revenue (MRR)

App businesses:

Revenue-generating apps

D2C brands:

Direct-to-consumer with proven sales

UK RBF Providers (2025)

Wayflyer

£10k-£10m for E-commerce

6-12% revenue share

Uncapped

£10k-£5m for SaaS/digital

8-15% share

Pipe

£50k-£5m for SaaS with MRR

6-12% share

Clearco

£10k-£10m for E-commerce

Marketing funding

Cost vs Traditional Loans

£50,000 borrowed, repaid over 18 months:

RBF (1.3x cap)

Repay £65,000

= £15,000 cost

(30% effective APR)

Traditional Loan (12% APR)

= £5,520 cost

Difference

RBF costs £9,480 more

Why Use RBF Despite Higher Cost?

Personal guarantee often not required (varies by provider)

No equity given up

Flexible payments (adapt to revenue)

Fast approval (1-2 weeks vs 4-8 weeks)

Non-dilutive (do not give away company ownership)

Requirements

Minimum £10,000 monthly recurring revenue

6-12 months trading history

Profitable or path to profitability

Connect bank account/payment processor (Stripe, PayPal, Shopify)

Conclusion

RBF is expensive but non-dilutive growth capital for digital businesses. Cost is 2-3x higher than loans, but you keep 100% ownership and payments flex with revenue.

Best for: Fast-growing digital businesses needing capital without giving up equity.

Compare RBF vs Traditional Funding

We will analyze your revenue and recommend whether RBF, traditional loans, or alternative options save you money

Free comparison for your business growth

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Frequently Asked Questions

What is revenue-based financing?

RBF is equity-free growth capital where you: Receive lump sum (£10,000-£5,000,000), repay as 2-15% of monthly revenue, repayment amount flexes with sales (more sales = pay more, less sales = pay less), and total repayment is capped (typically 1.3-1.8x amount borrowed).

Who is revenue-based financing perfect for?

Perfect for: SaaS companies (predictable recurring revenue), e-commerce businesses (high growth potential), subscription services (monthly recurring revenue/MRR), app businesses (revenue-generating apps), and D2C brands (direct-to-consumer with proven sales).

How much does revenue-based financing cost compared to traditional loans?

RBF is more expensive: £50,000 borrowed over 18 months = RBF (1.3x cap) costs £15,000 (30% effective APR) vs Traditional loan (12% APR) costs £5,520. Difference: RBF costs £9,480 more. However, benefits include: Personal guarantee often not required, no equity given up, flexible payments, fast approval (1-2 weeks vs 4-8 weeks), and non-dilutive (keep 100% ownership).