Best Practices

The RBFC Member Best Practices is a framework designed to establish high standards for fairness, transparency, and responsibility in the revenue-based financing industry.

RBFC Code of Ethics

Core Values

Small businesses need access to fair and transparent capital to invest, hire, and grow. Revenue Based Finance Coalition (RBFC) members provide needed financing solutions to power small businesses while adhering to this Code of Ethics. Fairness and transparency are core values of RBFC members.

Alignment of Interests

Revenue-based financing is a flexible source of capital that allows businesses to pay based on a percentage of their business revenue.  As a result, RBFC members succeed when our customers succeed.  RBFC members will:

  • Request at least three months’ of revenue or bank statements as part of underwriting to assess each applicant’s revenue. 
  • Provide applicants with reasonable time to review and consider an offer of financing, free from undue pressure or unreasonable deadlines.
  • Provide timely responses to customers facing hardship looking for immediate relief.

Fairness

RBFC members will:

  • Treat businesses and business owners fairly and with respect.
  • Use advertising and marketing practices that promote the responsible use of revenue-based financing. 
  • Never require an applicant to sign a cognovit or confession of judgment as a condition to obtaining financing.
  • Implement and maintain complaint handing procedures that include a timely review and response to customer complaints and concerns.

Transparency

RBFC members will provide clear and accurate cost of capital information that allows business owners to make informed financing choices for their business.  RBFC members will:

  • Clearly disclose all fees and charges.
  • Provide accurate balance and pay-off information promptly and at no charge.  
  • Maintain convenient e-mail and phone access to customer service representatives.

Responsibility

RBFC members will:

  • Comply with all applicable federal and state laws and regulations pertaining to revenue-based financing.
  • Be a company in good standing with the officials and regulatory bodies that govern them.
  • Protect every business and business owner’s sensitive data with robust website security and privacy policies and supporting testing programs. 
  • Perform reasonable vetting and review of third-party vendors and agents and provide them with a copy of this same Code of Ethics. 
  • Adhere to applicable NACHA operating rules and guidelines.

Antitrust Statement

It is the RBFC’s policy to comply with both federal and state antitrust laws. Our aim is to conduct ourselves in such a way as to avoid any potential for antitrust exposure. 

  • Full compliance with antitrust laws is a requirement for RBFC membership, and responsibility for compliance rests with each member. 
  • Competitors should not discuss certain subjects when they are together – either at formal association meetings or during informal contracts – with other industry members. 
  • RBFC members have an obligation to terminate any discussion, seek legal counsel’s advice, or, if necessary, terminate any meeting if the discussion might be construed to raise any antitrust risks.