# Revenue-based financing

> Revenue-based financing — Capital repaid as a fixed percentage of ongoing revenue until a set multiple of the amount advanced is returned. Non-dilutive; costly if revenue grows fast, slow to repay if it doesn't.

Source: https://lopifi.com/glossary/revenue-based-financing
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is revenue-based financing?** In accounting, revenue-based financing means capital repaid as a fixed percentage of ongoing revenue until a set multiple of the amount advanced is returned. Non-dilutive; costly if revenue grows fast, slow to repay if it doesn't.

## Also known as

- RBF

## Words this system refuses for it

- venture debt
- factoring

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Related:** revenue