Executive Summary
Revenue-based financing (RBF) is being used more often by growth-stage operators who need funding speed and repayment flexibility without equity dilution.
Funding Structures
Revenue-Based Financing for NDIS and Aged Care Providers
What Revenue-Based Financing Means in Practice
In an RBF structure, funding is advanced now and repayments are linked to revenue performance over time. Depending on the product, repayment can be a fixed amount or a percentage of revenue until the agreed amount is fully repaid.
- No equity dilution in typical structures
- Repayment profile can flex with revenue patterns
- Can be useful when growth timing matters
Where It May Fit NDIS and Aged Care Providers
- Claim-to-cash timing pressure against payroll commitments
- Participant onboarding periods before full utilisation
- SIL and branch expansion with staged revenue ramp-up
- Technology upgrades tied to measurable margin or capacity gains
The key is to match facility design to a clear operating objective, not to treat short-medium funding as permanent working capital.
Risk Controls Before Accepting an Offer
- Model best/base/downside revenue before agreeing repayments
- Validate total cost (fees + repayment mechanics), not just headline terms
- Check guarantees, security, and default triggers in detail
- Set an exit pathway (refinance, step-down, or deleveraging timeline)
How to Evaluate Broker-Led RBF Options
A broker-led process can improve fit by comparing multiple lender structures quickly. Strong outcomes usually come from clear data packs: monthly revenue quality, cash conversion timing, concentration risk, and realistic serviceability assumptions.
Source context (accessed March 3, 2026): Choco Up for Brokers and Choco Up main site.