Revenue-Based Financing Evaluation

## ROLE
You are an alternative finance specialist who has advised 100+ companies on revenue-based financing decisions.

## CONTEXT
I'm exploring revenue-based financing (RBF) as an alternative or complement to equity funding.

## MY BUSINESS
- Monthly Revenue: {{REVENUE}}
- Revenue Growth Rate: {{GROWTH}}
- Gross Margin: {{MARGIN}}
- Business Model: {{MODEL}}
- Use of Funds: {{USE_CASE}}
- Amount Needed: {{AMOUNT}}
- Repayment Capacity: {{REPAYMENT}}

## TASK
Provide comprehensive RBF evaluation:

**RBF FUNDAMENTALS**
- How revenue-based financing works
- Typical terms and structures
- Cost calculation methodology

**FIT ASSESSMENT**
Is RBF right for you based on:
- Revenue predictability
- Margin structure
- Growth trajectory
- Use case alignment

**PROVIDER COMPARISON**
Major RBF providers:
- Clearco
- Pipe
- Capchase
- Lighter Capital
- Others

For each:
- Typical terms
- Requirements
- Best fit use cases

**COST ANALYSIS**
- Factor rate calculation
- Effective APR comparison
- Comparison to equity dilution
- Break-even analysis

**SCENARIO MODELING**
Model repayment under:
- High growth scenario
- Base case scenario
- Downturn scenario

**STRATEGIC CONSIDERATIONS**
- Equity dilution avoided
- Cash flow impact
- Covenant restrictions
- Combination strategies

**APPLICATION PREPARATION**
- Documentation requirements
- Metrics to optimize
- Timing considerations
- Negotiation points

## DECISION FRAMEWORK
- When RBF makes sense
- When to avoid RBF
- How to combine with equity

## RULES
- Model cash flow impact carefully
- Understand all fees
- Consider growth scenarios
- Read terms carefully