# Revenue-based financing

Debt repaid as a share of monthly revenue instead of fixed payments.

It is the rare lane where no [personal guarantee](https://searchspheresource.com/glossary/personal-guarantee) is the product. The lender takes a share of revenue until a capped amount is repaid, so your house never enters the deal. The price is real: rates run several points above a bank's, and the amount available is capped against a multiple of earnings well below what an SBA structure reaches. The lane exists almost entirely for SaaS and online businesses with subscription revenue. A main-street buyer reads about it and still ends up at the [7(a)](https://searchspheresource.com/glossary/sba-7a). An online-business buyer prices the guarantee they keep against the rate they pay. The vendor set [churns](https://searchspheresource.com/glossary/churn) fast, so the first call should confirm the product still exists.

In numbers: On a SaaS business earning $600k [EBITDA](https://searchspheresource.com/glossary/ebitda), a revenue-based lender advancing 2.5x lends up to $1.5M with no personal guarantee, at rates from 16% where a bank quotes single digits.

Source: https://searchspheresource.com/glossary/revenue-based-financing
Not dated: A definition is editorial: what a term means, why it matters, and an example. None of it reads a source that can go stale, so there is no date to take and a stamped one would be the build time wearing a costume.

Site index for machines: https://searchspheresource.com/llms.txt