Ratio Boost

What Is Ratio Boost?

Ratio Boost is a Ratio product that converts a company's existing recurring contracts into upfront growth capital. It is non-dilutive and carries no warrants, so founders keep their ownership intact. Customers keep paying on their normal schedule, and the business receives the cash now instead of month by month.

How Ratio Boost Works

Recurring revenue is an asset that most software companies leave sitting on the shelf. A book of signed annual and multi year contracts represents committed, contractual cash, but it arrives in monthly slices spread across the next one to three years. Ratio Boost changes the timing of that cash without changing anything about the customer relationship.

The mechanism is straightforward. Ratio evaluates the contracted recurring revenue base and advances capital against it. The company receives an upfront payment. The underlying customers continue paying on the schedule they already agreed to, and nothing about their invoices, terms, or experience changes. The amount available scales with the size, duration, and quality of the contracted revenue, which is why retention, contract length, and customer credit profile matter more here than a growth rate on a slide.

Two things Ratio Boost is not. It is not equity, so no shares are issued and no ownership is transferred. It carries no warrants, which means there is no hidden equity component attached to the capital, a distinction that matters more than most founders realize until they read a term sheet closely.

Ratio Boost in Plain English

You already sold the revenue. Ratio Boost lets you use it now. Instead of collecting a signed three year contract in 36 monthly pieces, you take the capital upfront and put it into hiring, marketing, or product, while your customer keeps paying exactly as before.

Ratio Boost vs Equity and Venture Debt

Equity is the most expensive capital a growing company can raise, because the cost is not a rate, it is a permanent share of every future outcome. A founder who sells 15 percent to fund two years of hiring pays that price forever, including in an exit a decade later.

Venture debt is cheaper, though it typically arrives with conditions. It is often tied to a recent priced round, it commonly includes warrants, and it usually carries covenants that constrain how the business operates. Those constraints are precisely what a company does not want during a period when plans need to change.

Ratio Boost occupies a different position: capital sized to contracted revenue that already exists, delivered without dilution and without warrants. The tradeoff is honest. It is not appropriate for a pre revenue company or a business with a thin contracted base, because there is nothing to advance against. It suits companies whose problem is timing rather than demand.

What Ratio Boost Is Used For

Runway extension is the most common use. A company with strong retention and 11 months of cash can convert part of its contracted base into capital and buy the quarters needed to reach the next milestone on better terms than a bridge round negotiated under pressure.

The second use is funding growth that is already working. When customer acquisition cost payback is proven and the constraint is cash rather than demand, waiting to self fund is expensive in a way that never appears on the income statement. It shows up as market share that went to a competitor.

Third is smoothing the mismatch that recurring revenue creates by design. Costs to win and serve a customer land immediately. Revenue arrives over years. Recurring revenue financing closes that specific gap, which is a working capital problem dressed up as a growth problem.

Ratio Boost and the Closing Motion

Ratio consolidates the close into one motion: Propose, Close, Collect, Renew. Ratio Trade operates at the front of it. When a new deal is being structured, Trade lets the buyer pay monthly or quarterly while the seller collects the full contract value upfront, so a signature at Close becomes cash at Close. Ratio Boost works from the other end. It applies to contracts already signed and sitting in Collect and Renew, converting that existing recurring base into upfront growth capital. Trade governs how the next close converts to cash. Boost releases the cash already committed in past closes. Used together, they close the gap between when a customer commits and when the money is actually usable.

Common Questions About Ratio Boost

Is Ratio Boost dilutive?

No. Ratio Boost is non-dilutive and carries no warrants, so no equity is issued and no future ownership is claimed. That is the central difference between it and an equity round, and also between it and most venture debt facilities, which frequently attach warrant coverage to the loan.

Does Ratio Boost change anything for customers?

No. Customers continue paying under the contracts they already signed, on the same schedule and terms. Ratio Boost changes when the seller receives that revenue, not what the buyer experiences, which is what makes it usable across an existing book without renegotiating anything.

How is Ratio Boost different from Ratio Trade?

Ratio Trade applies at the point of sale, letting a buyer pay over time while the seller collects the full contract value upfront on a new deal. Ratio Boost applies to contracts already in place, converting an existing recurring revenue base into upfront capital. One structures the next close, the other unlocks previous ones.

Key Takeaways

• Ratio Boost converts existing recurring contracts into upfront growth capital.
• The capital is non-dilutive and carries no warrants, so founders keep full ownership.
• Customers continue paying on their existing schedule, with no change to their contracts or experience.
• Available capital tracks the size, duration, and quality of the contracted revenue base rather than a projection.
• Ratio Boost fits companies whose constraint is cash timing, not demand, including runway extension and funding proven growth.