Income Based Financing for Technology Companies With No Hard Assets


Income based financing (RBF), otherwise called sovereignty based financing, is a novel type of financing given by RBF financial backers to little to medium sized organizations in return for a settled upon level of a business’ gross incomes.

The capital supplier gets regularly scheduled installments until his contributed capital is reimbursed, alongside a numerous of that contributed capital.

Speculation finances that give this extraordinary type of financing are known as RBF reserves.


– The regularly scheduled installments are alluded to as sovereignty installments.

– The level of income paid by the business to the capital supplier is alluded to as the sovereignty rate.

– The various of contributed capital that is paid by the business to the capital supplier is alluded to as a cap.

Contextual investigation

Most RBF capital suppliers look for a 20% to 25% profit from their venture.

We should utilize an exceptionally basic model: If a business gets $1M from a RBF capital supplier, the business is relied upon to reimburse $200,000 to $250,000 each year to the capital supplier. That adds up to about $17,000 to $21,000 paid each month by the business to the financial backer.

Thusly, the capital supplier hopes best forex brokers in nigeria to get the contributed capital back inside 4 to 5 years.


Every capital supplier decides its own normal sovereignty rate. In our straightforward model above, we can work in reverse to decide the rate.

We should expect that the business produces $5M in gross incomes each year. As shown above, they got $1M from the capital supplier. They are paying $200,000 back to the financial backer every year.