# 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](https://go.speedstrapping.com/wayflyer-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](https://go.speedstrapping.com/lighter-capital-apply).

## 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.

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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](https://go.speedstrapping.com/book).

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