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Revenue-Based Funding
For Small Businesses.
Funding designed to move with your revenue, not against it.
Revenue-Based Funding is designed to align financing with how your business actually generates income. Repayments adjust based on your revenue, allowing for more flexibility than traditional fixed-payment financing — especially for businesses with fluctuating or delayed cash flow.
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What Exactly Is Revenue-Based Funding?
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 payment 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.
See how Revenue-Based Funding led to explosive business growth for this solopreneur.
What Are The Best Uses For Revenue-Based Funding?
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.
Bridging Cash Flow
Smooth out the gaps between incoming revenue and outgoing expenses.
Customer Acquisition
Fund marketing, advertising, or sales efforts aimed at bringing in new clients.
Operating Expenses
Cover day-to-day business costs such as rent, utilities, and other overhead.
Hiring Additional Staff
Support payroll and onboarding costs when adding new employees or teams.
Purchasing Inventory
Stock products ahead of anticipated sales without waiting for revenue.
Business Expansion
Fund growth initiatives such as adding services or entering new markets.
A Straightforward Look At Revenue-
Based Funding.
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.
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 new average monthly revenue drops to $65,000, the payment adjusts accordingly:
New Monthly Payment: $6,500.00
New Weekly Payment: $1,625.00
Types Of Revenue-Based Funding Solutions For Small Businesses.
Revenue-Based Funding is not a single product, but a category of funding products that share a common repayment model. The options below represent different ways this type of funding can be structured based on business needs, risk profile, and the use of funds.
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Learn more about our available funding options.
Qualification Requirements For
Revenue-Based Funding.
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:
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. The funding process is simple:
Frequently Asked Questions
About Revenue-Based Funding.
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 a complementary funding consultation to review your specific situation with a dedicated funding consultant.
See How Revenue-Based Funding Moves With You.
Funding structured for how your business earns.
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.
Not quite the right fit for your business?
Explore these other funding options.
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