Invoice Discounting | Omozing – Aparampaar Finance (RBI Registered NBFC) Revenue-Based Financing Explained

Revenue-Based Financing (RBF)

A flexible growth capital bridge between Equity and Debt

How the Process Works

1. Due Diligence

Lenders analyze your MRR, cash flow, and scalability potential.

2. The Agreement

Capital is provided at a repayment cap (typically 1.3x – 3x).

3. Repayment

A fixed % of monthly revenue is shared until the cap is met.

“Repayments reflect revenue: If business is light, the payment is light. You never pay more than you earn.”

The Advantages

Retain Control

No equity dilution, no board seats. Founders keep 100% ownership.

No Personal Collateral

Unlike bank loans, personal assets (homes/cars) are not at risk.

Quick Capital

Fast approval based on Recurring Revenue (MRR) rather than credit scores.

The Trade-offs

Revenue Required

Pre-revenue startups are not eligible. Lenders need historical data.

Smaller Check Sizes

Usually capped at 3-4 months of your Monthly Recurring Revenue.

Monthly Cash Impact

Repayments start immediately, which can tighten monthly cash flow.

Why Use RBF? (Ideal Use Cases)

Sales & Marketing

Fuel customer acquisition and brand growth.

Scale Operations

Expand operational units and infrastructure.

Hiring Talent

Recruit and train the best professionals for your team.