Revenue-Based Financing
Financing repaid as a share of revenue or through fixed periodic payments tied to sales performance.
Program overview
Revenue-based financing provides capital repaid through a percentage of revenue or scheduled payments tied to sales, rather than a traditional fixed amortization.
How it works
- Funding amount is generally based on recent revenue history.
- Repayment is collected daily, weekly, or monthly depending on the agreement.
- Total repayment is often expressed as a fixed amount or factor rather than an interest rate.
Common uses
- Inventory and marketing pushes
- Short-term growth spending
- Bridging seasonal demand
Who may be a good fit
- Businesses with steady card or deposit volume and a short-term, high-return use of funds
What you may need
- Business bank statements
- Processing statements where applicable
- Identification
- Voided business check
Potential advantages
- Payment can track sales volume in some structures
- Often less documentation than bank financing
Potential drawbacks
- Total cost can be substantially higher than term financing
- Stacking multiple obligations can strain cash flow
Application process
- Review recent revenue and existing obligations
- Compare total repayment and effective cost across offers
- Read the agreement, including reconciliation terms
General qualification considerations
- Consistent deposits
- Revenue trend
- Existing daily or weekly obligations
Alternatives to consider
Business Lines of CreditA revolving limit a business can draw from as needed, often used for short-term or recurring cash flow gaps.Working Capital FinancingShorter-term financing used to cover day-to-day operating needs rather than long-term assets.Invoice FinancingFinancing tied to outstanding customer invoices, commonly used by businesses that bill other businesses.
Frequently asked questions
Is this the same as a loan?
Not always. Some revenue-based products are purchases of future receivables rather than loans. The agreement defines the structure and your obligations.
This is preliminary information, not an eligibility determination, offer, or approval. Final eligibility, terms, rates and approval are determined by the applicable financing provider.