Revenue-Based Financing
Revenue-based financing aligns your funding with your business performance. Access capital quickly and repay it through a flexible percentage of your future sales.
What is Revenue-Based Financing?
Revenue-based financing (RBF), often structured similarly to a Merchant Cash Advance, is a funding method where a business receives an upfront sum of cash in exchange for a fixed percentage of its future gross revenues. Instead of fixed monthly payments, your payments fluctuate based on your sales—you pay more when business is booming, and less when sales are slow.
When running a growing company, having access to reliable capital is essential. The right revenue-based financing can provide the leverage needed to overcome cash flow hurdles, invest in high-ROI opportunities, and scale operations without giving up equity or control of your business.
Key Benefits
Rates, Terms & Timeline
Rates
RBF uses a factor rate instead of an interest rate. You agree to a total repayment amount upfront, so you know exactly what the capital will cost regardless of how long it takes to repay.
Terms
There is no set maturity date. The term lasts until the agreed-upon amount is collected from your revenue, which typically takes between 4 to 12 months on average.
Timeline
This is one of the fastest funding options available. You can apply, get approved, and receive funds in your account on the exact same day.
How It Compares
Revenue-based financing is much more flexible than a term loan because the payments adapt to your sales volume. It is easier to qualify for than almost any other product, but the cost of capital is generally higher than traditional secured loans.
Frequently Asked Questions
Is revenue-based financing a loan?
Technically, no. It is the purchase of your future receivables at a discount, which is why it offers so much flexibility and speed.
How are payments collected?
Payments are typically collected automatically via a small, fixed percentage drawn from your daily credit card batch or daily bank deposits.
Will this affect my personal credit?
RBF providers usually only perform a soft credit pull, and because it is not traditional debt, it often does not appear on your personal credit report.
Qualification Requirements
- Minimum $10,000/month in consistent revenue
- 3+ months in business
- Strong volume of bank deposits or credit card sales
- Credit score is not the primary factor
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