Revenue-Based Financing for D2C Brands in Dubai
Direct-to-consumer (D2C) brands often struggle with traditional bank loans. Banks like steady income, collateral, and long history. D2C brands have variable revenue, digital assets, and heavy marketing spend. They need flexible money that matches how they grow.
What is revenue-based financing (RBF)?
- You get money upfront
- You repay a small percentage of monthly revenue (e.g., 2–10%)
- Repay until a fixed total amount is reached (e.g., 1.2x–1.5x the funding)
- No fixed monthly payment
- No equity dilution
Example:
- Receive AED 1,000,000
- Pay 5% of monthly sales
- Repay until AED 1,300,000 total is paid
- If sales drop, the payment drops too
Why RBF fits D2C:
- Seasonal sales (Ramadan, Eid, DSF): payments flex with revenue
- Marketing-heavy: invest in ads and repay from increased sales
- No loss of ownership
- Fast process (often 2–4 weeks)
- Usually no collateral
RBF vs bank loans:
- Bank loans: fixed payments, slower approvals, need collateral
- RBF: variable payments, faster approvals, focus on revenue data
Who qualifies:
- 12+ months revenue
- AED 50k–100k monthly revenue minimum (varies)
- Growing sales trend
- Valid license and basic compliance
- Healthy customer metrics (repeat purchases help)
Use cases:
- Inventory for peak seasons
- Marketing budgets
- New product launches
- Channel expansion
Pros:
- Flexible payments
- Quick access to capital
- No equity dilution
- Works well with seasonality
Cons:
- Higher total cost vs bank loans
- Payments rise when revenue spikes
- Exact end date depends on sales
How to prepare:
- 12–18 months bank statements
- Monthly revenue and marketing metrics
- E-commerce platform and payment data
- Growth plan and projections
Tips:
- Compare 2–3 providers
- Use funds for high-ROI levers
- Track performance and payback
- Maintain transparent updates
Best fit:
- Variable/seasonal revenue
- Strong marketing engine
- Desire to keep ownership
- Clear growth actions that convert capital into sales
RBF is a strong option for UAE D2C brands that want speed, flexibility, and control while scaling.
