Revenue-Based Financing UK 2025: Complete Guide

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)

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 (don't 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.