Put your revenue-linked funding terms into a workable legal agreement

Usually we need the proposed funding amount, the repayment model, any cap or target return, and a clear explanation of how your business recognises revenue. It also helps to know whether income comes from subscriptions, one-off sales, usage fees, enterprise contracts or a mix of streams, because that can affect the drafting. If you already have a term sheet, investor comments or an existing draft, we can work from those materials. The more settled the commercial terms are, the easier it is to finalise the agreement efficiently.

Yes, it can be. Revenue based finance often involves issues that standard templates do not handle well, such as deferred revenue, bundled services, seasonal income, refunds, chargebacks or related-party transactions. If those points are not dealt with properly, the repayment calculation can become contentious very quickly. Templates also tend to be light on reporting mechanics and default triggers, even though those are often central to the funder's position. A tailored agreement is usually worth it where the business has anything more complex than simple monthly sales.

That depends on how settled the commercial terms are and whether the repayment structure is straightforward or heavily negotiated. Where the deal points are reasonably clear, drafting and revisions are often completed within about one to two weeks. It may take longer if the agreement includes unusual revenue definitions, multiple stakeholders or active negotiation over control rights and reporting obligations. Once the document is finalised, it can be used as the main transaction agreement for the funding. Any extra negotiation support can be quoted separately if needed.

The short answer is that the economics usually turn on the definitions. If the agreement is unclear about what counts as revenue, when repayments are measured, how refunds or chargebacks are treated, or what happens if the business changes its pricing model, the parties can end up disputing the core bargain. A well-drafted agreement records the repayment formula, reporting obligations, cap and enforcement triggers in a way that is usable once the funding is live. That matters most where revenue is variable, recurring or spread across different channels.

Most agreements cover the funding amount, the revenue definition, the percentage or formula used for repayments, payment timing, reporting obligations, access to records, any repayment cap, default events and what happens on early repayment or a sale of the business. Some deals also include restrictions on moving revenue to related entities or changing the business model in a way that affects the repayment base. Those details matter because even small wording changes can shift the practical outcome of the deal once money has been advanced.

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At Sprintlaw, our pricing is transparent and designed for startups and small businesses. Many one-off legal services, including document drafting and reviews, are provided for a fixed fee with an upfront quote before you proceed.

Prices typically range from $250 to $2,500 AUD depending on the complexity and scope of the work. For ongoing support, Sprintlaw Memberships include options such as legal templates, consultations, a legal helpline and credits for services.

If your project is larger or more complex, we will provide a tailored quote after understanding what you need.

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