Document background
The Revenue Based Financing Agreement is designed for use in the Australian market where companies seek alternative growth financing without diluting equity or taking on traditional debt. This document is particularly suitable for businesses with consistent revenue streams looking to scale operations, fund expansion, or support working capital needs. It establishes a financing relationship where repayment is tied to the company's revenue performance, typically ranging from 2% to 8% of monthly revenue until a predetermined return cap is reached. The agreement comprehensively covers funding mechanics, revenue calculations, payment obligations, and compliance requirements under Australian law, including necessary provisions under the Corporations Act 2001 and other relevant financial services regulations. It's commonly used by scale-ups and established businesses seeking flexible financing solutions that align with their growth trajectory and cash flow patterns.
