RBF & Financing 6 min readUpdated May 15, 2026
RBF Terms Explained
Plain-English glossary of every term you'll see in a revenue-based financing deal — cap multiple, revenue share, vault, holdback, true-up.
TL;DR
The five terms that actually matter: advance, revenue share %, cap multiple, term ceiling, and vault mechanism. Everything else is negotiable garnish.
Advance
The cash you receive up front. Typically 3–6x monthly recurring revenue.
Revenue share %
Fixed percentage of gross revenue routed to the lender until the cap is hit.
Cap multiple
Total payback ceiling. 1.3x means you return $130k on a $100k advance no matter how fast.
Frequently asked questions
What's a fair cap multiple in 2026?
1.3–1.4x for strong revenue quality, 1.5–1.6x for early or riskier businesses.
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