Revenue-Based Financing¶
| Product ID | PRD-014 |
| Launch tier | 3 |
| Jurisdiction | NZ + AU |
| Status | Planned |
| Regulations | CCCFA 2003 · NCC Act 2009 (NCCP) · AML/CFT Act 2009 · AML/CTF Act 2006 · Privacy Act 2020 · Privacy Act 1988 |
Revenue-based financing provides a lump sum to a business in exchange for a percentage of future revenue until a fixed total repayment cap is reached. Repayments flex with business performance — lower in slow periods, higher in strong ones — with no fixed maturity date and no penalty for slow trading.
Key terms¶
| Term | Value |
|---|---|
| Facility type | Revenue-based financing — percentage of revenue until cap reached |
| Advance | Lump sum per credit assessment |
| Repayment rate | Configured percentage of daily/weekly revenue (per facility deed) |
| Total repayment cap | Fixed at origination; disclosed as total cost of credit per CRE-002 |
| No maturity date | Facility closes when the total repayment cap is reached |
| Minimum repayment | None — zero revenue day equals zero repayment |
| Revenue source | Bank transaction history (primary); verified accounting integration (alternative) |
| Early repayment | Permitted; fee may apply per fee schedule if settled before projected term |
| Statement frequency | Monthly |
System capabilities¶
Repayment is calculated and posted automatically each business day from observed revenue (MOD-001 and MOD-005) — no manual collection. The total cost of capital is fixed and disclosed at origination — the customer knows the exact maximum they will repay before the facility closes. Zero-repayment days are handled automatically with no missed payment events and no late fees triggered on slow trading days. ECL is modelled on revenue volatility (MOD-031), not a fixed instalment schedule.
Eligibility¶
The applicant must be a legal entity with demonstrable revenue history. Credit assessment per CRE-002 is required; MOD-027 and MOD-028 assess revenue level, volatility, and business health. Revenue data is sourced from bank transaction history or a verified accounting integration. KYC must be current for the applicant entity and all beneficial owners per AML-003. The total repayment cap and effective annualised rate are disclosed at application before a credit decision is made.
Account / facility opening¶
- Customer submits an application. Revenue history is extracted from bank transaction data or accounting integration.
- MOD-027 and MOD-028 assess revenue level, volatility, and capacity to service the repayment percentage.
- The advance amount, repayment percentage, and total repayment cap are calculated and presented to the customer.
- MOD-050 enforces the total cost disclosure gate — the customer must acknowledge the total cost of credit before settlement can proceed.
- MOD-049 captures consent; MOD-050 delivers pre-contractual disclosures.
- MOD-007 disburses the advance and activates the repayment engine.
Fees¶
| Fee type | Amount |
|---|---|
| Origination fee | Per fee schedule |
| Early settlement fee (if applicable) | Per fee schedule |
All fees are disclosed in the pre-contractual disclosure and included in the total cost of credit calculation.
Interest / charges¶
There is no interest rate stated as a periodic rate. The cost of the facility is expressed as the total repayment cap — the advance multiplied by a fixed repayment factor. This fixed total cost and its equivalent annualised rate are disclosed at origination per CRE-002. Daily repayment amounts vary with revenue; the facility closes automatically when the total repayment cap is reached.
Statements¶
MOD-113 generates a monthly statement showing: advance balance remaining, repayments posted in the period (by day), total repaid to date, remaining balance to cap, and fees charged. Statements are delivered to the customer's in-app document vault.
Closing / exit terms¶
The facility closes automatically when the total repayment cap is reached — no action required from the customer. Early repayment is permitted at any time; an early settlement fee may apply per the fee schedule if settled before the projected completion date. No penalty applies for slow trading — zero-revenue days do not constitute a default event.
Regulatory¶
New Zealand: Credit Contracts and Consumer Finance Act 2003 (CCCFA) — total cost of credit disclosure required. AML/CFT Act 2009 per AML-003. Privacy Act 2020 per PRI-001.
Australia: National Consumer Credit Protection Act 2009 (NCCP) — credit guide and comparison rate disclosure required. AML/CTF Act 2006 per AML-003. Privacy Act 1988 per PRI-001.
The fixed repayment cap must be disclosed in a format equivalent to a comparison rate in Australia. MOD-050 enforces this disclosure as a settlement gate.
Governing policies¶
- CRE-002 — Responsible Lending Policy
- CON-004 — Product Disclosure & Sales Practice Policy
- CON-005 — Fee & Pricing Transparency Policy
- CON-006 — Product suitability and governance
- AML-003 — Know Your Customer (KYC) & Identity Verification Policy
- PRI-001 — Privacy Policy
Implementation modules¶
| Module | Name | Status |
|---|---|---|
| MOD-001 | Double-entry posting engine | Deployed |
| MOD-002 | Immutable transaction log | Deployed |
| MOD-003 | Real-time balance engine | Deployed |
| MOD-005 | Daily accrual calculator | Deployed |
| MOD-007 | Account state machine | Deployed |
| MOD-020 | Pre-payment validation suite | Deployed |
| MOD-027 | Affordability calculator | Deployed |
| MOD-028 | Credit score & risk rating | Deployed |
| MOD-030 | Stage allocation model | Deployed |
| MOD-031 | ECL calculation & GL posting | Deployed |
| MOD-044 | JWT role-based access control | Deployed |
| MOD-049 | Open banking consent management | Deployed |
| MOD-050 | Disclosure enforcement module | Deployed |
| MOD-065 | Credit servicing & collections | Deployed |
| MOD-068 | Authentication & session management | Deployed |
| MOD-105 | Product eligibility engine | Not started |
| MOD-110 | Fee engine | Deployed |
| MOD-113 | Statement generation | Not started |
Compiled 2026-05-22 from source/entities/products/PRD-014.yaml