Revenue-Based Financing (RBF) is a form of non-dilutive funding where a company receives capital in exchange for a fixed percentage of ongoing gross revenues. Repayments fluctuate with the business's revenue performance, making it more flexible than traditional fixed-payment debt.
RBF is particularly popular with SaaS companies, subscription businesses, and other recurring-revenue models because of the predictability of their cash flows. Unlike equity financing, founders retain full ownership and control of their company.