Revenue-based financing (RBF) is a type of financial capital provided to growing businesses in which investors inject funds in return for a % of ongoing gross revenues.

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After an initial grace period, monthly payments continue until the initial capital amount + a multiple (or return cap) is repaid; generally within 3-5 years.

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RBF can be thought of as an interim source of finance between bank lending and venture capital. The main differences between these funding types and RBF are: