Revenue Based Finance Calculator

Revenue-based finance (RBF) is a loan repaid as a percentage of monthly revenue rather than fixed monthly payments. If revenue falls, payments reduce proportionally. UK providers include Clearco, Pipe, Capchase, and YouLend.

UK RBF factor rates typically range from 1.15x to 1.5x. This means for every £1 borrowed, you repay £1.15 to £1.50 in total. Higher risk businesses get higher factor rates.

Business loans have fixed monthly repayments regardless of revenue. RBF payments scale with revenue — lower revenue means lower payments. This makes RBF more flexible for seasonal or growing businesses.

Revenue share is the percentage of monthly revenue used to repay the finance, typically 3-15%. Higher revenue share means faster repayment. Most providers offer 5-10%.

RBF is particularly popular with SaaS and subscription businesses because recurring revenue is predictable and easy for lenders to assess. Clearco and Capchase specialise in SaaS RBF.

Finance costs under RBF (the difference between amount received and total repaid) are generally allowable business expenses for corporation tax purposes, similar to loan interest.

Effective APR depends on repayment speed. A 1.35x factor rate repaid over 8 months is approximately 50% APR; over 18 months it's approximately 23% APR. RBF is typically more expensive than a bank loan.

Most RBF providers require at least 6-12 months of revenue history and minimum £10,000-£20,000 monthly recurring revenue. Some e-commerce focused providers have lower thresholds.

Lenders typically require read-only access to your payment processor (Stripe, Square), accounting software (Xero, QuickBooks), and bank statements to assess revenue predictability.

RBF for businesses is not regulated by the FCA (it falls outside consumer credit regulation). Ensure you understand all terms including factor rates, revenue share, and any additional fees.

Alternatives: CBILS/BBLS successor schemes, invoice finance, merchant cash advance, business overdraft, challenger bank loans (Iwoca, Tide), asset finance, and equity investment.

Compare: factor rate (total repayment ÷ funding), revenue share %, any prepayment penalties, minimum repayment periods, and whether additional fees apply.