Checklist · Revenue-Based Financing
Revenue-Based Financing fundraising checklist — Step by Step 2026
This checklist is designed to guide startups through the Revenue-Based Financing (RBF) process, addressing key challenges like integration with existing systems, scaling operations post-funding, and ensuring adoption across the team. By following these steps, you can increase your chances of securing RBF and using it effectively to fuel growth.
Phase 01
Preparation and Assessment
- 1.1high1 week
Evaluate RBF Suitability
Determine if RBF aligns with your business model and growth trajectory. Consider your revenue predictability and potential for scalability. Tools like Monte Carlo simulators can help.
- 1.2critical2 weeks
Analyze Financial Metrics
Thoroughly analyze your revenue, customer acquisition cost (CAC), and lifetime value (LTV) to understand your financial health. Use tools like Baremetrics to track these metrics.
- 1.3medium1 week
Identify Potential RBF Providers
Research and identify RBF providers that specialize in your industry and business model. Consider providers such as Lighter Capital and Capchase. Check reviews on G2.
- 1.4high2 weeks
Prepare Financial Projections
Develop detailed financial projections demonstrating your revenue growth potential and ability to repay the RBF. Use forecasting tools like PlanGuru.
- 1.5critical1 week
Legal Due Diligence
Consult with legal counsel to understand the terms and conditions of RBF agreements. Ensure compliance with relevant regulations. Use a platform like LexCheck for contract review.
- 1.6medium1 week
Assess Integration Needs
Evaluate the integration requirements for RBF platforms with your existing accounting and CRM systems. Platforms like Tray.io can assist with integration.
- 1.7high1 week
Define Use of Funds
Clearly define how you will use the RBF funds to drive growth and achieve specific milestones. Focus on areas like marketing, sales, or product development.
- 1.8high2 weeks
Prepare a Pitch Deck
Create a compelling pitch deck that highlights your business model, financial performance, and growth potential. Include key metrics and projections. Use tools like PitchBook for market data.
- 1.9medium1 week
Team Alignment
Ensure your entire team understands the RBF process and their roles in achieving the repayment goals. Address any concerns about adoption or implementation.
- 1.10medium1 week
Document Processes
Document all key processes related to revenue tracking and reporting to ensure accurate and timely repayment. Use a platform like Process Street for documentation.
Phase 02
Application and Negotiation
- 2.1high1 week
Submit Applications
Submit applications to your selected RBF providers. Ensure all required documents and information are accurate and complete. Use a tracking spreadsheet to manage applications.
- 2.2critical1 week
Address Due Diligence Requests
Respond promptly to any due diligence requests from the RBF providers. Provide clear and concise answers to their questions. Expect requests for bank statements and customer data.
- 2.3critical1 week
Negotiate Terms
Negotiate the terms of the RBF agreement, including the revenue share percentage, repayment cap, and any associated fees. Consult with legal counsel during negotiations.
- 2.4high1 week
Compare Offers
Carefully compare offers from different RBF providers to determine the best fit for your needs. Consider the overall cost of capital and the flexibility of the repayment terms.
- 2.5medium1 week
Secure Board Approval
Obtain board approval for the RBF agreement. Present the terms and conditions to your board and address any concerns they may have.
- 2.6critical1 week
Finalize Legal Agreements
Work with legal counsel to finalize the RBF agreement and ensure it accurately reflects the agreed-upon terms. Double-check all clauses and conditions.
- 2.7medium0.5 week
Establish Communication Channels
Establish clear communication channels with the RBF provider to ensure smooth reporting and repayment. Designate a point of contact for ongoing communication.
- 2.8high1 week
Implement Tracking Systems
Implement tracking systems to monitor your revenue and repayment progress. Integrate your accounting software with the RBF provider's platform. Use tools like ChartMogul.
- 2.9medium0.5 week
Prepare for Onboarding
Prepare your team for the onboarding process with the RBF provider. Ensure they understand the reporting requirements and repayment procedures.
- 2.10high0.5 week
Review Key Performance Indicators (KPIs)
Reiterate KPI goals with your team to ensure alignment and focus on the metrics that drive revenue growth and repayment capacity.
Phase 03
Implementation and Growth
- 3.1highOngoing
Deploy Capital
Deploy the RBF capital according to your defined use of funds. Track your spending and measure the impact on revenue growth. Use a platform like Ramp for expense management.
- 3.2criticalOngoing
Monitor Revenue Performance
Continuously monitor your revenue performance and identify any trends or anomalies. Use analytics tools like Mixpanel to track key metrics. Report regularly to your RBF provider.
- 3.3highOngoing
Optimize Marketing Campaigns
Optimize your marketing campaigns to maximize ROI and drive revenue growth. Use A/B testing and data-driven insights to improve campaign performance. Tools like HubSpot can help.
- 3.4highOngoing
Scale Sales Efforts
Scale your sales efforts to accelerate revenue growth. Invest in sales training, automation tools, and lead generation strategies. Use platforms like Salesforce.
- 3.5highOngoing
Enhance Product Development
Invest in product development to improve your product's features, functionality, and user experience. Gather customer feedback and prioritize feature requests. Use a platform like Jira for project management.
- 3.6criticalOngoing
Track Repayment Progress
Closely track your repayment progress and ensure you are meeting your obligations. Monitor your revenue share payments and maintain open communication with the RBF provider.
- 3.7mediumAs needed
Address Integration Issues
Address any integration issues that arise between your systems and the RBF provider's platform. Work with your IT team to resolve any technical challenges.
- 3.8mediumOngoing
Optimize Cost Structure
Continuously optimize your cost structure to improve profitability and increase your ability to repay the RBF. Identify areas where you can reduce expenses without impacting revenue growth. Use a platform like Fathom for financial analysis.
- 3.9mediumOngoing
Monitor Customer Satisfaction
Monitor customer satisfaction levels to ensure you are providing a positive customer experience. Use customer feedback to identify areas for improvement. Tools like Zendesk can help.
- 3.10mediumOngoing
Prepare for Future Funding
Prepare for future funding rounds by maintaining strong financial performance and building a solid track record. Consider your options for future growth capital, including equity financing. Use Cap Table management tools like Carta.
Phase 04
Reporting and Compliance
- 4.1critical1 day/month
Prepare Monthly Reports
Prepare monthly reports for the RBF provider, including revenue data, key performance indicators, and repayment progress. Ensure accuracy and timeliness. Use a platform like Databox for dashboarding.
- 4.2criticalAs needed
Comply with Reporting Requirements
Comply with all reporting requirements outlined in the RBF agreement. Provide any additional information requested by the RBF provider. Use a checklist to ensure compliance.
- 4.3highOngoing
Maintain Accurate Records
Maintain accurate records of all financial transactions and revenue data. Use accounting software like QuickBooks to ensure data integrity. Back up your data regularly.
- 4.4mediumAs needed
Address Compliance Issues
Address any compliance issues that arise promptly and effectively. Consult with legal counsel if necessary. Implement corrective actions to prevent future issues.
- 4.5mediumQuarterly
Review Legal Agreements
Periodically review the RBF agreement to ensure you are complying with all terms and conditions. Stay informed of any changes in regulations or laws. Use a platform like Ironclad for contract management.
- 4.6mediumAs needed
Prepare for Audits
Prepare for potential audits by the RBF provider. Organize your financial records and ensure they are readily accessible. Conduct internal audits to identify any weaknesses.
- 4.7highOngoing
Communicate with RBF Provider
Maintain open and transparent communication with the RBF provider. Proactively address any concerns or questions they may have. Build a strong relationship based on trust.
- 4.8lowOngoing
Document Communication
Document all communication with the RBF provider, including emails, phone calls, and meetings. Maintain a log of all interactions. Use a CRM like Pipedrive to track communication.
- 4.9lowAs needed
Seek Expert Advice
Seek expert advice from financial advisors or consultants if you have any questions or concerns about RBF compliance. Engage professionals with experience in revenue-based financing.
- 4.10lowOngoing
Stay Updated on Best Practices
Stay updated on best practices for RBF reporting and compliance. Attend industry events and network with other companies that have used RBF. Follow industry leaders on LinkedIn.
Phase 05
Repayment and Exit
- 5.1highOngoing
Monitor Repayment Schedule
Continuously monitor your repayment schedule and ensure you are on track to repay the RBF within the agreed-upon timeframe. Use a calendar or project management tool to track deadlines.
- 5.2criticalOngoing
Manage Cash Flow
Carefully manage your cash flow to ensure you have sufficient funds to meet your repayment obligations. Forecast your cash flow and identify potential shortfalls. Use a platform like Float for cash flow forecasting.
- 5.3mediumAs needed
Accelerate Repayment (Optional)
Consider accelerating your repayment if you have excess cash flow. This can reduce your overall cost of capital. Discuss options with your RBF provider.
- 5.4mediumAs needed
Negotiate Repayment Terms (If Needed)
Negotiate repayment terms with the RBF provider if you are facing financial difficulties. Be transparent and proactive in your communication. Explore options such as deferral or restructuring.
- 5.5criticalFinal month
Complete Repayment
Complete the repayment of the RBF according to the agreed-upon terms. Obtain confirmation from the RBF provider that the obligation has been satisfied. Double check all amounts and dates.
- 5.6high1 week
Obtain Release Documentation
Obtain release documentation from the RBF provider confirming that the RBF agreement is terminated and that you are no longer subject to any obligations. Store this documentation securely.
- 5.7medium1 week
Update Financial Records
Update your financial records to reflect the completion of the RBF repayment. Remove any related liabilities from your balance sheet. Use accounting software to update records.
- 5.8low1 week
Evaluate RBF Experience
Evaluate your overall experience with RBF. Identify what worked well and what could be improved. Document your lessons learned for future funding rounds. Conduct a post-mortem analysis.
- 5.9low1 week
Consider Future Funding Options
Consider your future funding options. Evaluate whether RBF is still the best fit for your needs or if other forms of financing, such as equity, are more appropriate. Consult with financial advisors.
- 5.10lowOngoing
Maintain Relationships
Maintain relationships with your RBF provider. They may be a valuable source of advice and support in the future. Express gratitude for their partnership. Send a thank you note.
Pro tips
- Prioritize clear communication with your RBF provider to build trust and ensure a smooth repayment process.
- Invest in robust analytics to track revenue performance and identify areas for improvement.
- Ensure your team is aligned on the goals of RBF and their roles in achieving them.
- Proactively address any compliance issues to avoid penalties and maintain a positive relationship with the provider.
- Negotiate flexible repayment terms that align with your business's revenue cycle and growth trajectory.