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.

Just submit an enquiry via this page or click the 'get started' button on our website to submit an enquiry. After you've submitted an enquiry, one of our legal consultants will review your enquiry within 1 business day and get in touch to get a better idea of exactly what you are looking for.

Then your legal consultant will send through an email with a bit more information about the services you need, along with a fixed fee quote setting out costs, scope of the service and timing. Have a read through it, and if you're happy with the scope, you can accept and sign our engagement letter online - easy!

Once you've formally accepted, we'll connect you with a specialist lawyer and they will work with you to complete your project. They will contact you by email or phone if they need to get in touch.

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 operate completely online, which means we can help you wherever you are in New Zealand. We have office spaces in Sydney, and in Melbourne, but our use of technology allows our team members to work remotely from around the world. Our legal team are mostly based in Sydney, Melbourne, Brisbane and Perth. We also have a London office for Sprintlaw UK.

Our legal team is made up of experienced lawyers, who are specialists in various areas of law and hold an Australian legal practising certificate. None of our Sprintlaw lawyers are New Zealand qualified lawyers and they do not currently hold a New Zealand practising certificate.

They provide legal services working remotely from Australia via our 'legal consultancy' model, through which (under section 6 and section 35 of the New Zealand Lawyers and Conveyancers Act 2006) our Australian legal team are permitted to provide legal services to New Zealand businesses provided they do not provide services in certain 'reserved' areas of law. You can read our FAQ page to learn a bit more about our 'legal consultancy' model.

Given the strong similarities between Australian and New Zealand law, and the areas of law in which we practice (being small business and startup law), we do not view the fact that our lawyers have not qualified in New Zealand as having any substantive impact on the quality of our service. We are committed to ensuring that we provide high quality, affordable legal services to all our New Zealand clients.

Our legal team have all trained at leading firms, but have left the traditional corporate law world to join us on our mission to create a new and better way of delivering legal services. They have specialist expertise in technology law, intellectual property law, contract drafting and review, corporate law and commercial law.