We provide a loan to you today and you pay us back a percentage of revenue up to a capped amount. Most companies pay back the loan over 3-4 years.
Revenue based loans are popular with companies that have lumpy cash flows (like early-stage SaaS companies). Rather than a fixed interest rate each month, you pay more in the months when you have strong cash flow and less in the months when you have less cash flow.
No financial covenants. Non-dilutive. Flexible pre-payment options.