Revenue-Based Financing
Repayment that tracks revenue, recalculated monthly
Revenue-based financing repays a fixed multiple of capital through a percentage of monthly revenue. The share is recalculated as new revenue data arrives, so obligations compress in slow months and clear faster in strong ones.
- Amount
- $25,000 – $2,000,000
- Term
- 6 – 36 months estimated
- Repayment cap
- 1.1x – 1.4x repayment cap
- Speed
- Decision in minutes with connected revenue data
Underwriting
How revenue-based financing is underwritten and priced
What the model reads
Recurring versus one-time revenue mix, month-over-month growth rate, gross churn where subscription data is available, customer concentration, and gross margin proxies from banking outflows.
How the remittance share adjusts
The share of revenue collected is recalculated on each monthly data refresh so the modeled payoff stays inside the target window. Recalculation moves the share within a contracted band; it never raises the total repayment cap.
Who this fits
Businesses with recurring or predictable top-line revenue — subscription software, e-commerce with repeat purchase behavior, service firms on retainer — where the growth curve, not the asset base, is the credit story.
Mechanics
How the structure operates, step by step
- 01
Cap agreed
Funded amount and total repayment cap are fixed at signing.
- 02
Share applied
A percentage of monthly revenue is designated for remittance.
- 03
Monthly recalculation
The share adjusts within its band as revenue data refreshes.
- 04
Cap reached
Collection ends when the cap is met. No residual balance.
Eligibility snapshot
What qualifies for this product
- Time in business
- 9+ months
- Monthly revenue
- $25,000+
- Revenue mix
- Recurring or repeat-purchase preferred
- Data connection
- Bank plus processor or billing platform
- Equity dilution
- None
Criteria are directional, not absolute. Files near a threshold are reviewed by a credit analyst. Average decision time across products is 4m 12s.
Restaurants, clinics, contractors, and online sellers — funded every day.
Questions
Revenue-Based Financing questions, answered directly
- How is revenue-based financing different from a merchant cash advance?
- Both tie repayment to revenue, but they differ in cadence and data source. A merchant cash advance typically collects daily or weekly from card processing settlements over a short horizon. Revenue-based financing collects monthly against total top-line revenue over a longer horizon, and the remittance percentage is recalculated as new data arrives rather than fixed at origination.
- Does revenue-based financing dilute ownership?
- No. It is a financing arrangement repaid from revenue, not an equity investment. There is no share issuance, no valuation event, no board seat, and no ownership transfer at any point in the term.
- What happens in a month with no revenue?
- If revenue is zero for a period, the revenue-based remittance for that period is zero, subject to the terms of your agreement. The repayment cap does not increase; the estimated payoff date simply moves out.
More questions are answered on the full FAQ.
Related products
Get a priced revenue-based financing offer
Connect a business bank account to see structure, cost, and total dollar obligation before signing anything.