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Revenue-Based Funding is designed to align with how your business actually generates income. Payments adjust based on your revenue, allowing for more flexibility than traditional fixed-payment financing—especially for businesses with fluctuating or delayed cash flow.
Payback does not accumulate interest based on the length of repayment.
Payments are not fixed and are based on your business' monthly revenue.
Faster approval timeline with same-day or next-day funding available.
Repayment is secured on future business revenue—not personal assets.
Revenue-Based Funding is a financing structure where repayment is tied to a business' revenue rather than a fixed loan payment. Instead of traditional interest and amortization schedules, payments are set as a percentage of revenue and structured to reflect how the business earns.
Approval and repayment terms are based on historical revenue performance, with a fixed total payback amount established upfront. Payments are initially set using an average revenue baseline and may be adjusted downward if revenue declines, while the total amount owed does not increase based on how long repayment takes.
Revenue-Based Funding is best suited for short- to medium-term needs where cash flow timing matters. Payments align with how a business earns, making it useful for managing operating gaps and growth-related expenses without rigid repayment schedules.
Smooth out the gaps between incoming revenue and outgoing expenses.
Cover day-to-day business costs such as rent, utilities, and other overhead.
Stock products ahead of anticipated sales without waiting for revenue.
Fund marketing, advertising, or sales efforts aimed at bringing in new clients.
Support payroll and onboarding costs when adding new employees or teams.
Fund growth initiatives such as adding services or entering new markets.
Below is an example of a Revenue-Based Funding offer:
| Month 1 Revenue: | $100,000.00 |
|---|---|
| Month 2 Revenue: | $80,000.00 |
| Month 3 Revenue: | $90,000.00 |
| Month 4 Revenue: | $110,000.00 |
| Average Revenue: | $95,000.00 |
Based on a 1.30 factor rate, the approval given is:
| Approval Amount: | $100,000.00 |
|---|---|
| Payback Amount: | $130,000.00 |
With a 10% repayment percentage of the average revenue:
| Monthly Payment: | $9,500.00 |
|---|---|
| Weekly Payment: | $2,375.00 |
If the business experiences a sustained revenue decline and the average monthly revenue drops to $65,000, the payment adjusts accordingly:
| New Monthly Payment: | $6,500.00 |
|---|---|
| New Weekly Payment: | $1,625.00 |
To determine eligibility, a funder reviews the most recent four months of business deposits. Non-revenue transactions are removed, and each month's revenue is totaled and averaged to establish a baseline.
Based on the overall risk profile, the approval amount can be as much as 100-150% of the average revenue.
The initial payment is then set as a fixed percentage of that average monthly revenue—typically between 10-15%, and structured as either a daily payment or a weekly payment.
If future revenue declines, the payment amount may be adjusted downward to reflect the lower average. If revenue increases, the payment amount does not increase to reflect the higher revenue.
Eligibility for Revenue-Based Funding is based on your business' performance, rather than traditional lending metrics. Approval considerations focus on how your business generates and manages revenue. This approach keeps eligibility aligned with business activity and cash flow consistency, rather than relying solely on credit.
Generally, qualified applicants met the following criteria:
At least $20,000 in average monthly revenue over the most recent 4 months.
A time in business of at least 1 year or more, depending on the industry.
A maximum holdback of no more than 35% of the business' monthly revenue.
Positive history of repayment on any current or previous funding.
As long as your business has consistent, stable revenue and a solid payment history, you can take advantage of this solution to improve your financial position and your cash flow management. See how the process works.
Traditional loans have fixed monthly payments, regardless of how your business is performing, whereas Revenue-Based Funding adjusts with your cash flow. If revenue decreases, your payments adjust accordingly. Alternatively, if revenue increases, your payments will not increase to reflect the higher revenue.
This structure is designed to prevent the payment from becoming a burden during slower periods. Instead of a fixed obligation that doesn't care whether you had a good month or a bad one, Revenue-Based Funding flexes with your actual business performance to always keep payments affordable.
Repayment is based on your average monthly revenue over the most recent four months of business deposits. Non-revenue transactions are removed, and each month is totaled and averaged to establish a baseline.
From there, your payment is set as a fixed percentage of that average — typically between 10-15% — and structured as either a daily or weekly payment.
For example, if your average monthly revenue is $95,000 and your repayment percentage is 10%, your monthly payment would be $9,500 (or approximately $2,375 weekly).
If your business experiences a sustained revenue decline, your payment can be adjusted downward to reflect the new average. This keeps payments proportional to what your business is actually earning.
Importantly, the total payback amount does not increase based on how long repayment takes. You owe what you agreed to upfront — the timeline just extends if payments decrease.
And if your revenue increases? Your payment stays the same. It doesn't go up just because you had a good month.
Approval amounts can be as high as 100-150% of your average monthly revenue, depending on your overall risk profile, current holdback percentage, and other factors. To get a better sense of how much your business could qualify for, you can visit our funding eligibility calculator, or to get a custom funding quote, submit your application to receive your no-obligation funding offer.
Yes. You can pay off your balance at any time with no prepayment penalties. And depending on how early you pay it off, you may qualify for prepayment discounts.
To see how much you could save by paying off early, check out our early payoff calculator.
Yes, provided the additional funding doesn't over-leverage your business. Typically, additional funding can be secured as long as your total holdback doesn't exceed 35% of monthly revenue.
If you're currently managing multiple advance payments and cash flow is tight, you may qualify for a Reverse Consolidation—a funding product designed to reduce your daily or weekly payment obligation and free up operating cash.
Understanding how Revenue-Based Funding works starts with asking the right questions. Explore our Frequently Asked Questions to get the clarity you need before you apply.
If you have a question that wasn't answered here, you can contact us or schedule your complimentary funding consultation to review your specific situation with a dedicated funding consultant.
Traditional loans don't care if you had a slow month. Revenue-Based Funding does. Whether you're managing cash flow, covering day-to-day costs, or funding your next move, Revenue-Based Funding is designed to move with your revenue—not against it.
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