Revenue-Based FinancingFree Financial Model Download

A revenue-based financing (RBF) model captures the cash mechanics, returns, and risk of an alternative-finance product where a provider pays an upfront cash advance to a recurring-revenue borrower and recovers a fixed multiple of the advance — the factor — by collecting a percentage of the borrower's monthly revenue until either the cap is reached or a hard term cap binds. The workbook is built around two views that share a single Assumptions sheet: a single-advance roll-forward that walks one deal across 36 months, and a 24-month rolling-cohort portfolio that aggregates the unit economics across a book of advances. Seven sheets — Cover, Assumptions, Advance, Portfolio, Returns, Sensitivity, Checks — tie everything to the same named-range inputs.

The Advance sheet runs the deal mechanics month by month: borrower revenue compounds at a monthly growth rate from the Month-1 base, remit due each month is revenue times the remit percent, opening balance starts at advance amount times the factor multiple, and actual remit is the smaller of remit due, the term cap, and outstanding balance. Closing balance falls by actual remit until the cap is reached. Cumulative repaid, a payback flag, and the provider net cash flow stream (–advance at month 0, +actual remit thereafter) close the sheet so the Returns sheet can run IRR, MOIC, payback period, and weighted-average life directly off these rows.

The Portfolio sheet uses a 12-row cohort matrix that INDEX'es into the single-advance Closing and Remit rows offset by each cohort's origination month, so a single edit to the advance terms or the deal-count cadence reshapes the entire portfolio without any duplicated math. Aggregate outstanding, gross remittance, default losses (outstanding times annual default rate divided by 12 times LGD), net remittance, funding cost, opex, and provider net margin roll out across the 24-month horizon. The Returns sheet then sits the single-advance metrics next to the portfolio metrics — gross / net MOIC, realised loss rate, provider net margin — and a spread block that compares the single-advance annualised IRR to cost of funds, opex drag, and expected loss, surfacing the net spread the provider actually earns.

The Sensitivity sheet flexes the factor multiple against the remit percent on a 7x7 grid for two outputs: payback months (closed-form solution of the geometric revenue equation, capped at the term cap) and annualised IRR (factor raised to 12 over payback). The Checks sheet validates the cap on cumulative repaid, the bound on remit percent, non-negative closing balances and portfolio outstanding, the factor floor, and term-cap consistency. Fintech lenders, credit funds, finance teams at Pipe / Capchase / Clearco-style platforms, and recurring-revenue founders evaluating non-dilutive financing use this template for deal-level pricing (what factor and remit produce a target IRR), portfolio-level book sizing (what origination cadence supports a target net spread after losses and opex), and education on how revenue-linked repayment differs from amortising debt or invoice factoring.