AFO · Head-to-head
Asset-based lending advances against the balance-sheet collateral (AR + inventory). Revenue-based financing advances against future monthly revenue. The two address different working-capital profiles: ABL fits B2B businesses with material receivables; RBF fits recurring-revenue businesses (SaaS, e-commerce, subscription) where the cash gap is more about timing than balance-sheet quality.
Side by side
The matrix below pulls directly from the catalog. Each row shows the same data point across both programs so you can spot the differences at a glance.
| Attribute | ABL Revolver (Asset-Based Lending) | Revenue-Based Financing (RBF) |
|---|---|---|
| Capital type | Asset-based debt | Revenue-based financing |
| Family | Debt | Alternative structures |
| Size range | $1,000,000 — Scales with assets | $50,000 — $5,000,000 |
| Typical cost | Prime + 2–5%. 85% advance on eligible AR, 50–65% on finished-goods inventory. | Fixed multiple on the advance, typically 1.2–1.5x. Effective APR varies with repayment speed. |
| Speed to close | Weeks to a few months | Days to weeks |
| Eligibility | Working-capital-intensive business (distributors, manufacturers, staffing). Quality of AR + inventory matters more than profitability. | Recurring-revenue business (SaaS, e-commerce, subscription) with at least six months of consistent monthly revenue. No personal guarantee, no dilution. |
| Use of proceeds | Working capital, Refinancing | Working capital, Expansion |
| Status | Coming soon | Live — self-serve |
Choosing between them
Each side describes the scenarios where the program is the stronger fit. Most real-world deals end up in the “in common” section below — neither/nor.
When to choose
Pick the ABL revolver when the business is balance-sheet-collateral-rich (significant AR + inventory) and operating in a traditional B2B model (distribution, manufacturing, staffing). Lower effective cost than RBF when the borrowing base supports the full ask, with no personal guarantee on larger facilities.
When to choose
Pick RBF when the business is recurring-revenue (SaaS, subscription, e-commerce), light on balance-sheet collateral, and growing fast enough that the variable repayment matches the revenue ramp. No personal guarantee, no dilution, no fixed term — but the effective APR depends on repayment speed and can be higher than ABL if the business scales quickly.
The CPA can look at your specific situation and tell you in one twenty-minute call which program (or stack) is the right structure — and what providers will want to see before the first conversation.