What is Revenue Based Financing (RBF)?

Revenue Based Financing is a flexible funding method where businesses receive capital in exchange for a percentage of future gross revenues until a fixed repayment cap is met. Unlike traditional loans, repayment adjusts in real time based on monthly sales performance.

Who is eligible for RBF?

Companies with consistent or growing monthly revenue, typically over SGD 10,000 per month, are ideal candidates. Industries such as e-commerce, SaaS, retail or subscription based services often meet these criteria. Good financial records and integrated payment systems improve eligibility.

How does RBF differ from bank loans or equity financing?

Unlike term loans, RBF does not require collateral or fixed monthly payments. It is also non dilutive which means you retain full ownership unlike equity financing. RBF repayments are tied to your business performance to provide more cash flow flexibility.

What is the typical repayment period?

The average RBF term ranges from 6 to 24 months depending on revenue performance and the agreed repayment multiple. Faster growth results in quicker repayment while slower periods do not trigger penalties.

Can I use RBF alongside other financing options?

Yes. RBF can be combined with other funding sources such as lines of credit, merchant cash advances or venture debt as long as your revenue can support multiple obligations. It is often used as a short term growth enabler.

Revenue Based Financing in Singapore

By Trinh Thanh

Head of Research

Glossary

Disclosure

By Trinh Thanh

Head of Research

Revenue based financing provides capital that is repaid as a fixed percentage of your monthly revenue rather than through fixed monthly instalments. When sales are high you repay more when sales are slow you repay less. This flexibility makes revenue based financing attractive for businesses with variable or seasonal revenue including e-commerce, SaaS, F&B and retail.

Unlike equity financing you don't give up ownership and unlike traditional loans payments adjust to your cash flow. Revenue based financing is offered by some alternative lenders in Singapore. This page explains how it works and when it makes sense.

More Details

What Is Revenue-Based Financing?

Revenue based financing advances capital upfront in exchange for a percentage of future monthly revenue until a fixed total amount is repaid.

Example: Receive $100,000, repay $120,000 total (1.2x) by giving 10% of monthly revenue until the $120,000 is fully repaid.

How Much Can I Get?

Amount: Typically 1 to 3x monthly revenue
Range: $50,000 to $1,000,000
Repayment multiple: 1.1x to 1.5x the advance
Revenue share: 5 to 15% of monthly revenue

What Does It Cost?

Revenue based financing uses a factor rate or multiple. You repay 1.1x to 1.5x what you borrowed.

Example: Borrow $100,000 with 1.3x multiple equals repay $130,000 total. No interest rate, just the fixed total repayment.

Who Is Eligible?

Businesses with consistent, trackable revenue
E-commerce, SaaS, F&B, retail preferred
Minimum 6 to 12 months operating history
Minimum $20,000 to $50,000 monthly revenue
Integrated payment or POS systems for revenue tracking

Disclosure

Glossary

How much do you want to borrow?

$50,000

$500,000

Over what period would you like to pay?

1 Month

60 Months

Total Cashback

Your monthly payment

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

How much do you want to borrow?

$50,000

$500,000

Over what period would you like to pay?

1 Month

60 Months

Total Cashback

Your monthly payment

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

Expert Advise

Financing Options

Our Expert says

Revene Based Financing Works When Growth Pays for Itself

Revenue based financing is ideal when the capital will directly drive revenue growth such as marketing spend, inventory for a proven product or scaling a profitable channel. If $100,000 in marketing generates $300,000 in additional revenue, paying back $130,000 (1.3x) is a great trade. If you're using revenue based financing to cover operating losses or expenses that don't drive revenue the fixed repayment multiple becomes expensive debt. Revenue based financing works best for businesses with proven unit economics looking to scale not for businesses still figuring out profitability.

Trinh Thanh

Head of Research

Best Financing Options for Variable Revenue Businesses

Different solutions for businesses with fluctuating cash flow.

Revenue-Based Financing

Best for: Businesses with consistent but variable monthly revenue

Repay as a percentage of monthly sales. Payments flex with your revenue. No fixed monthly instalments. Best for e-commerce, SaaS, F&B and retail.

Cost: 1.1x to 1.5x multiple Speed: 1 to 2 weeks

Business Line of Credit

Best for: Flexible access to draw and repay as needed

Revolving facility, draw when you need, repay when you can. Pay interest only on amount used. Good for managing seasonal fluctuations.

Cost: 8 to 12% p.a. Speed: 1 to 2 weeks (setup)

Working Capital Loan

Best for: Predictable lump sum needs with fixed repayment

Fixed monthly payments regardless of revenue. Better for businesses with stable revenue who want certainty. EFS-WCL offers government support.

Cost: 7 to 10% p.a. EIR Speed: 3 to 14 days

Who Provides These Loans in Singapore?

Compare lender types, requirements and typical terms.

Choco Up

Singapore based RBF provider for e-commerce and digital businesses. Quick approval with revenue data integration.

Amount: $50k to $1M

Multiple: 1.06x to 1.3x

Revenue Share: 5 to 10%

Jenfi

Revenue-based financing for startups and growth companies. Integrates with payment platforms.

Amount: $50k to $500k

Multiple: 1.1x to 1.4x

Revenue Share: 5 to 15%

Funding Societies

Offers various financing structures including revenue-based options for qualifying businesses.

Amount: Varies

Multiple: 1.1x to 1.3x

Revenue Share: 8 to 15%

No initial impact on credit score
Up to 1% Cashback & Vouchers
MAS registered lenders only

How much do you want to borrow?

$50,000

$500,000

Over what period would you like to pay?

1 Month

60 Months

Total Cashback

Your monthly payment

Rate Disclaimer*

*Based on a $20,000 loan at 6.95% APR over 5 years, read more

How Revenue Based Financing Works

Apply and connect systems

Submit application and connect your payment, POS or accounting systems for revenue verification.

Receive advance

Once approved receive lump sum typically 1 to 3x monthly revenue.

Automatic repayments

Fixed percentage (5 to 15%) of monthly revenue is automatically collected until total repayment amount is reached.

Repayment complete

Once you've repaid the agreed multiple (e.g. 1.3x) the facility is complete. No ongoing obligation.

Pros & Cons of Revenue Based Financing

PROS

Payments flex with revenue, cash flow friendly
No equity dilution, retain 100% ownership
Fixed total cost, know exactly what you'll repay
Faster than traditional bank loans
No personal guarantee (some providers)

CONS

Higher effective cost than traditional loans when annualised
Revenue tracking required with privacy or integration concerns
Not suitable for businesses without consistent revenue
Repayment multiple is fixed, no benefit from early repayment
Limited availability in Singapore

How to find the Right Way to Finance Your Variable Revenue Business (FAQs)

How does RBF differ from a traditional loan?

Traditional loans have fixed monthly payments regardless of revenue while revenue based financing adjusts payments based on actual revenue, lower when sales dip and higher when sales rise.

What's the effective interest rate of RBF?

It depends on how fast you repay. A 1.3x multiple repaid over 12 months equals roughly 30% effective rate. Repaid over 6 months equals roughly 60%. The faster you grow the faster you repay and the higher the effective rate.

Do I need to give up equity?

Revenue based financing is debt financing not equity, you retain 100% ownership.

What systems need to be connected?

Typically payment gateways (Stripe, PayPal), POS systems, bank accounts or accounting software. This allows lenders to verify revenue and automate collections.

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Explore Other Financing Options

Revenue-based financing suits businesses with variable revenue needing flexible repayment but for fixed capital needs, working capital loans offer lower effective rates with EFS support. A business line of credit provides flexible ongoing access without revenue-tied repayment.

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Revenue Based Financing in Singapore

Fact-checked

Glossary

Disclosure

Useful Resources

Fact-checked

What Is Revenue-Based Financing?

How Much Can I Get?

What Does It Cost?

Who Is Eligible?

Disclosure

Glossary

Useful Resources

Your monthly payment

Your monthly payment

Expert Advise

Financing Options

Revene Based Financing Works When Growth Pays for Itself

Best Financing Options for Variable Revenue Businesses

Who Provides These Loans in Singapore?

Your monthly payment

How Revenue Based Financing Works

Pros & Cons of Revenue Based Financing

PROS

CONS

How to find the Right Way to Finance Your Variable Revenue Business (FAQs)

How does RBF differ from a traditional loan?

What's the effective interest rate of RBF?

Do I need to give up equity?

What systems need to be connected?

Our customers trust us when it comes to making important borrowing decisions

Explore Other Financing Options