$200,000 in 5 days

A B2B SaaS company with $2.1M ARR had a large enterprise contract in final-stage negotiation. The contract was signed, implementation was scheduled, and the revenue would begin recognizing in 60 days — but their runway needed to bridge that gap. The company's MRR growth was strong, their churn rate was under 3%, and their unit economics were solid. But with 4 months of runway left and no current revenue to cover the gap, they were looking at a bridge.

The founder had been fielding inbound interest from VCs at a pre-money valuation that implied $8M for the current round. Taking equity at that point would mean diluting at a valuation that didn't reflect where the company would be in 60 days when the enterprise contract closed. The ask was simple: bridge the gap without touching the cap table.

Bank bridge loans exist for businesses with consistent revenue. At $2.1M ARR with sub-3% churn, this company qualified on paper. But the bank's process for a $200K bridge — with the documentation, personal guarantees, and covenants — would take 45–60 days. The gap they were bridging was 60 days. The math didn't work.

SBA loans are off the table for bridge purposes — the program isn't designed for working capital gaps, it's designed for longer-term fixed asset or real estate financing.

The equity math was also stark. At $8M pre-money, raising $2M would mean 20% dilution at a valuation 6–8 weeks before the company would be worth significantly more. The $200K RBF at 10% monthly revenue deduction would cost $17,000 in interest over 5 months — versus $480K–$640K in equity dilution avoided.

The structure was a revenue-based advance: $200,000 advanced to the business, repaid at 10% of monthly revenue until the advance plus an agreed return was retired. The key terms: no equity, no personal guarantee, no board seat, no information rights beyond standard financial reporting.

The 10% monthly revenue deduction was structured so it wouldn't constrain operations. At $2.1M ARR, 10% of monthly revenue was approximately $17,500/month — manageable given the company's other cash sources. The advance was sized so that the first few months of deductions would be covered by the revenue in excess of fixed costs.

The enterprise contract closed. Revenue jumped. The RBF was retired in 5 months at $17,000 in total interest cost. At that point, the company raised a priced round at a $14M pre-money — the equity dilution cost of the bridge would have been $560,000–$640,000 at the pre-Series A valuation.

No warrants. No success fee. Pure RBF structure.

The enterprise contract closed. Revenue recognition started on schedule. The RBF was retired in 5 months.

• 5 months to full repayment, $17,000 total interest cost
• No equity dilution — avoided $480K–$640K at Series A valuation
• 10% monthly revenue deduction — fully manageable at $2.1M ARR
• Company raised priced round at $14M pre-money 8 weeks after the bridge was retired

The founder's equity in the business was preserved entirely. The cost of the RBF — $17,000 — was less than 1% of the dilution cost avoided. The same lender has since been engaged for a working capital facility as the company scales past $5M ARR.