Put your revenue-based finance deal into a workable legal agreement

Most revenue-based finance agreements need clear wording on the funding amount, the percentage of revenue payable, how revenue is measured, reporting obligations, payment dates, any cap on total repayments, and what happens if the business is sold, restructured or refinanced. Some deals also include early repayment options, default provisions, information rights and restrictions intended to protect the investor's position. These details matter because a small gap in the formula or reporting process can change the commercial result quite significantly over time.

It usually depends on how your business earns income and how the parties want repayments to work in practice. A subscription business with recurring monthly revenue may need different wording from a consultancy or ecommerce business with uneven sales cycles, refunds or chargebacks. We also look at whether the deal includes a repayment cap, minimum payment expectations, founder protections, or rights linked to future fundraising. If the arrangement is tied into other finance documents or has unusual payment mechanics, we may need extra detail before the draft can be finalised.

Once we have the key commercial terms and any background documents, we can prepare the first draft of the agreement. For a standard matter, the initial draft is often turned around within about 3 to 5 business days, although more complex structures or incomplete instructions can extend that timing. After you review the draft, we can make one round of amendments within scope. The fixed-fee covers the agreement work described on this page. It does not cover tax advice or ongoing involvement in negotiations or disputes after the document stage.

The biggest issues usually come from unclear mechanics rather than the headline amount invested. If the agreement does not spell out what counts as revenue, whether deductions are allowed, when calculations are made, or how missed payments are handled, the parties may apply the formula differently once money starts moving. That can create friction around cash flow and investor return expectations. A well-drafted agreement records the commercial model in a way that is easier to operate month by month, especially where revenue fluctuates or comes through more than one sales channel.

A template can be useful for spotting common headings, but it often falls short where the repayment model is commercially specific. Generic wording may not deal properly with deferred revenue, refunds, group entities, channel partners, or changes to pricing and billing methods. Those points can materially affect what is payable and when. If the deal has been negotiated around your actual trading model, the agreement should reflect that rather than relying on assumptions taken from another transaction. That is especially important where repayments are meant to track business performance over time.

Working with us is simple. Start by submitting an enquiry through our website using the form at the top of this page or on our Get Started page. A legal project manager will review your enquiry within 1 business day and reach out to understand your needs.

They'll send you a fixed fee quote outlining costs, scope, and timing. If you're happy, you can accept and sign our engagement letter online. Once that's done, we'll connect you with an expert lawyer who will complete your project via email, phone, or video chat, with the timing confirmed in your quote.

If you're not looking for help with a specific matter, explore our platform, which offers free templates, tools to get your business set up, and even a free tier to get started. Whether you need legal support or just want to browse resources, we've got you covered.

At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from £100 to £1,500 depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

Sprintlaw UK operates fully virtually, with the team working online across the UK to provide support to startups and small businesses nationwide. Many of our team are based in London and often meet at co-working offices, but our operations remain fully digital, ensuring flexibility and efficiency for both our clients and team.