What does revenue-based financing actually require?

Revenue-based financing generally requires an established, readable revenue stream and enough cash generation to support repayment. Provider requirements differ by business model, geography, operating history, and customer concentration; a headline revenue threshold is only the beginning.

History is part of eligibility

Chapter 5 compares providers to show why a founder should start the clock early. Wayflyer’s published USD minimum is $10,000 average monthly revenue over at least six months; its operating-history requirement also varies by business type. Read the requirements.

Lighter Capital’s application specifies recurring revenue from four or more customers, and includes hardware among eligible business categories. It also states that approval is subject to credit assessment. These conditions were checked October 30, 2026; neither provider guarantees an offer merely because a company meets a published minimum. Lighter Capital application.

Worked example: a threshold is not a decision

Illustrative assumptions. A physical-products company earns $12,000 a month for six months. It has evidence for a $10,000 average threshold, but must still meet the provider’s geography, operating-history, and underwriting requirements.

Suppose an offered facility requires $3,000 a month in payments while the company generates $4,000 before those payments. Only $1,000 remains for other demands. A slow month could consume that buffer. Compare the actual payment schedule, fees, collateral, guarantees, and early-repayment terms with a downside cash forecast before accepting.

What to prepare

Bring revenue and bank histories, customer concentration, gross margins, liabilities, and a specific use of proceeds. Ask how payments behave when sales fall: a product described as revenue-based may have contract terms that matter more than its label. Use current written terms, not a comparison table, for the final decision.

This page is an original summary of an argument developed in Speedstrap, not an extract from the book.

From Chapter 5 of Speedstrap. Find the book on Amazon.

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