When applying for revenue-based financing, lenders assess specific metrics to determine your eligibility and terms. Here's what they look for and how to optimise your position.
Monthly Recurring Revenue (MRR)
MRR is the foundation metric. Most RBF providers look for a minimum of €10K MRR, with many sweet spots in the €25K-€500K range. Consistency matters more than absolute size.
Revenue Growth Rate
Month-over-month and year-over-year growth signals business health. Lenders want to see positive trajectory, even if growth is modest. A business growing 5-10% monthly is very attractive.
Churn Rate
Low churn signals product-market fit and revenue predictability. Gross revenue churn under 5% monthly is excellent. Net revenue retention above 100% (negative churn) is the gold standard.
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