What Revenue Data Do Revenue-Based Financing Funders Look At?
Revenue-based financing funders usually read your bank account activity, your payment processor or ecommerce platform data and your accounting records, often through secure read-only connections. They want to see revenue by month, refunds, margins and trends.
Which accounts do RBF providers connect to?
- Business bank accounts, for deposits and balances.
- Payment processors and ecommerce platforms, for sales detail.
- Accounting software, for revenue, expenses and margins.
- Subscription billing systems, for recurring revenue and churn.
What do they calculate from your data?
From that data, funders build a picture of monthly revenue, growth rate, seasonality, refund and chargeback rates, gross margin and customer concentration. Those figures drive the amount, the revenue share and the total repayment.
Why connections instead of statements?
Connected data is harder to alter and more detailed than PDFs. It also lets the funder track revenue for payment calculations after funding.
What access are you giving?
Read-only connections let a funder see data, not move money. You can usually revoke access through the platform's settings, but check your agreement first, since many require ongoing access while the financing is active.
Why does clean data help?
Make sure your accounting records are current and categorized correctly. Refunds, transfers and loan proceeds recorded as revenue make the picture look inconsistent.
What if you can't connect an account?
Some funders accept exported reports or statements when a direct connection isn't possible. It slows things down but rarely ends the conversation.
How do providers read a seasonal business?
If your revenue follows a season, share several years of data where possible so the funder sees the pattern rather than a single dip.
How do refunds and chargebacks count?
Funders pay close attention to refunds and chargebacks, because they reduce the revenue the funder's share is based on. A rising refund rate is a signal of product or customer problems. If your rate spiked for a known reason, like a shipping issue that's now fixed, explain it before underwriting finds it.
Does customer concentration matter?
Funders also look at how much revenue comes from your largest customers. A software company with a few big clients reads differently from one with thousands of small ones. Heavy concentration doesn't rule you out, but expect questions about contract terms and renewal dates.
How do marketing spend and growth factor in?
For online businesses, funders often compare marketing spend with revenue growth. They want to see that spending produces sales at a sustainable rate. If you've recently changed channels or cut spend, share the context.
Why does accuracy beat polish?
Funders care more that your data is accurate and consistent than that it looks impressive. Numbers that match across your bank, processor and accounting records build trust quickly.
How can Afterfirst help with this?
Call 877-FUND-654 and tell us which platforms you use. We'll let you know which funders in our network connect to them and what they'll want to see.
What else do owners ask about this?
- How much revenue-based financing can my business get?
- What's in a revenue-based financing agreement?
- How much can I draw on a business line of credit?
More short answers on this topic are on the revenue-based financing and lines of credit FAQ, and the factor rate calculator runs the numbers for your own file.
Have a question we didn't answer?
Ask us on the call. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.