3 Top Revenue-Based Financing Solutions in the USA

The US is home to over 32 Revenue-Based Financing (RBF) companies collectively managing 57+ distinct funds totaling more than $4.31 billion in capital.

This growth is driven mainly by the demand for subscription-based payments. Customers are increasingly seeking this option, limiting the need for upfront capital in enterprises, especially in the SaaS and hardware sectors.

Navigating this RBF market, however, can be complex. The challenges stem from the multitude of options, each with different eligibility criteria, application processes, and integration in daily sales workflows. Additionally, factors like financing costs and varying terms and conditions add to the complexity.

In this post, we'll explore three standout RBF solutions:

• Ratio, celebrated for its flexible terms and 0% financing
• Capchase, renowned for its rapid funding process
• Gynger, notable for its expertise in underwriting-based software financing

Our in-depth review of these options will guide you to an informed decision. We aim to help you access the growth capital you deserve as quickly as possible.

Top 3 Revenue-Based Financing Companies

Ratio offers RBF via its product called Boost and sets itself apart by offering true sale based financing via its product called Trade. Capchase is a prominent name in the RBF market, while Gynger extends its services beyond the traditional vendors, catering to buyers as well.

1. Ratio

With Ratio by their side, SaaS and hardware companies in good health can get upfront cash without dilution or adding debt on the balance sheet, allowing them to focus on growth without worrying about the capital.

Customers love Ratio for its ease of use and flexible financing terms.

Key Differentiators

• With an impressive $400M credit facility for customer financing, Ratio emerges as a potential option for cash-strapped enterprises.
• Ratio enables robotics companies to provide 'Robotics-as-a-Service' models to their clients. This is a significant advantage for an industry that requires substantial capital investment.

Clients: Barkibu, Bigtincan, Sorting Robotics, Bizaway

Ratio Boost

Ratio Boost helps you close more deals by offering Buy Now, Pay Later ( BNPL) flexibility to your customers. BNPL minimizes delayed or lost deals due to short-term budget constraints at the customer end.

Benefits

• Quick Cash Access: Obtain funds almost instantly, enabling rapid response to financial needs.
• Dynamic Risk Assessment: Boost offers price-based risk evaluation through dynamic underwriting, adapting to the unique aspects of your business.
• Full Ownership: Avoid equity dilution and retain complete control over your company.
• Affordable and Convenient: A more accessible option compared to traditional debt, with no fixed interest rate. Pay based on your monthly revenue, tailoring repayments to your financial situation.

Ratio Trade

Ratio Trade enables you to convert annual and multi-year contracts into instant cash without debt, warrant, or dilution.

How Does Ratio Trade Work?

Ratio Trade operates through five simple steps:

1. Connect your banking, financial, and billing systems via the Ratio Portal
2. Await Ratio's review of your submission, with approval or decline typically occurring within 48 hours
3. Upload your annual or multi-year contracts
4. Receive an indicative cash offer from Ratio for each of your contracts
5. Accept the offer and enjoy the cash deposited in your account!

Pricing

It is determined by the discount rate ranging from 1% - 15%, contingent on factors like contract terms, risk of the contract, repayment schedule, etc.

2. Capchase

Capchase is a popular fintech company specializing in RBF, offering solutions tailored to support the various growth needs of SaaS companies.

Key Differentiators

• Strong customer base - trusted by 4,000+ enterprises
• Capchase Analytics - You can monitor key metrics and obtain industry reports, including Benchmark Reports and Pulse of SaaS.

Clients: Fondo, CIENCE, Audisense, IOTAP

How Does Capchase Pay Work?

• Payment terms: Typically spans from 12-36 months
• Eligibility Criteria: To qualify, companies should have a steady recurring cash flow, a minimum of 3+ months of runway, $250k-100m+ ARR, and a revenue history of 6+ months

Benefits of Capchase Pay

• Extend runaway time or reduce time-to-revenue
• Withdraw and spend as per your needs
• Boost top-line metrics by eliminating the need for discounting

3. Gynger

Gynger provides tailored solutions for both vendors and buyers in the SaaS and infrastructure industries.

For vendors, Gynger enables the offering of flexible payment options to customers, enhancing purchasing accessibility.

Clients: Lovd, Datadog, Airtable, Secureframe, GCP, AWS, Amplitude, Slack

How Does Gynger for Vendors Work?

• Gynger creates a tailored payment portal for your company.
• Customers are directed to an easy application to apply for financing and choose custom terms.
• Gynger pays you the full contract value the next business day, while customers pay monthly.

Benefits of Gynger for Vendors

• Drive More Revenue: Upsell with flexible financing over 3-12 months.
• Generate Qualified Leads: Build a pipeline with payment flexibility.
• Improve Retention: Increase Net Retention by offering finance options to existing customers.

Ratio: A Promising RBF Solution

Ratio offers RBF through Boost and true sale based financing via Trade. Whether you choose Boost or Trade, Ratio is a dependable partner. Their easy-to-use interfaces handle your financing requests in minutes.