Document revenue-linked funding clearly

The most important terms are usually the funding amount, the percentage or formula applied to revenue, the definition of revenue itself, payment timing, reporting and record-keeping obligations, any cap on total repayment, and what happens on early repayment, default or a sale of the business. Some deals also include information rights or restrictions designed to protect the investor's position. A key drafting issue is making sure the repayment mechanics match the way the business actually earns income, especially where revenue is uneven, deferred or channelled through different products or entities.

We usually need to understand how your business generates revenue, whether income is recurring or project-based, how payments are received, and whether there are any unusual accounting or operational features that affect the repayment formula. We will also want to know the commercial terms already discussed with the funder, including any cap, minimum payment expectations, reporting frequency and events that should trigger renegotiation or termination. Those details matter because a revenue-based model can work very differently for a SaaS business than for a services or marketplace business.

Once engaged, we gather the key transaction details and review any term sheet, investor comments or existing draft you already have. We then prepare the agreement or mark up the draft, highlighting any clauses that may need further commercial input. Timing depends on how settled the deal terms are and how complex the revenue mechanics will be. If the commercial position is still moving, the drafting process can take longer because the legal wording needs to keep pace with those changes. Ongoing representation after the document work is not included in this fixed-fee.

No. This service covers legal drafting or review of the revenue based finance agreement and related comments on the document terms. It does not include tax advice, accounting advice, financial modelling, or management of the full transaction from start to finish. If your deal also requires related documents or broader negotiation support, that can be discussed separately. Keeping the service document-focused helps make clear what is covered here and what would need additional work outside the fixed-fee.

It gives both sides a written framework for a funding model where repayment is linked to business revenue rather than fixed loan instalments or immediate equity. That sounds simple, but the detail can become contentious quickly. The agreement needs to say what revenue is counted, when it is measured, what records support the calculation, and when the arrangement ends. Without that clarity, disagreements can arise over under-reporting, timing of payments, exclusions from revenue, or whether the investor is getting the return they expected.

Submit an enquiry on this page or click 'Get started'. One of our legal consultants will review it within 1 business day and get in touch to understand what you need.

Your consultant will then email you a fixed-fee quote setting out the cost, scope and timing. If you're happy with it, you can accept the quote and sign our engagement letter online.

Once you've accepted, one of our Australian-qualified lawyers will work with you to complete your project. They'll contact you by email or phone if they need anything.

Sprintlaw works on fixed-fee pricing wherever possible, so you can review the scope and cost before you decide whether to proceed. For the Revenue Based Finance Agreement service, pricing starts from $900.00.

After you enquire, a legal consultant will confirm what is included, the expected timing and whether any extra work is needed before you engage us.

We work online, so we can help wherever you are in New Zealand. Our team works remotely, mainly from Australia.

Your work is done by our Australian-qualified lawyers, who hold Australian practising certificates and specialise in business law. None of them are New Zealand lawyers or hold a New Zealand practising certificate.

Sprintlaw NZ Limited is a legal consultancy, not a law firm, and is not regulated by the New Zealand Law Society. We don't act in court or tribunal matters, conveyancing (including leases and business sales) or other reserved areas of work. Communications with Sprintlaw are unlikely to be protected by legal professional privilege. We still keep everything confidential under our engagement letter.