Revenue-Based Financing: A Simple Guide for Gulf Founders
Definition: Capital today, repay a pre-set % of revenue until a capped amount is reached.
Example: Advance AED 100 K → repay 10 % of monthly sales until AED 130 K returned.
| Term Loan | RBF | |
|---|---|---|
| EMI | Fixed | Variable |
| Interest | Compound | Flat fee |
| Collateral | Often | None |
| Approval | Weeks | Days |
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Debt vs. Equity: Which Suits Your Stage?
Equity = shares sold, no repayments, cede some control.
Debt/RBF = keep shares, repay over time, maintain autonomy.
Decision tree:
- Revenue consistent? If no, equity/grants. If yes, step 2.
- Goal short-horizon ROI? If yes, debt/RBF; else blend.
CTA: Talk to a capital coach—free 15-min call.
10 Financial Terms Every MENA Entrepreneur Should Know
- RBF – repay % of revenue
- MRR – monthly recurring revenue
- Gross Margin – revenue minus direct costs
- Churn – % customers lost
- Tenure – repayment length
- AOV – average order value
- CAC – customer acquisition cost
- Runway – months until cash zero
- EBITDA – pre-tax/interest earnings
- Capital Stack – mix of funding types
CTA: Bookmark this glossary—refer anytime.
Digital Finance: Why Gulf Businesses Grow Faster with Fintech
Paper forms are out; e-KYC and 24-hr disbursals are in.
Smartphone penetration > 95 % across GCC; cloud POS adoption soars; fintech turns data trails into eligibility.
CTA: Plug in your sales data—see an offer today.
