Revenue-Based Financing

Revenue-based financing advances capital repaid as a fixed percentage of monthly revenue until a set multiple (for example 1.3x-1.9x) is repaid. Payments flex with sales: strong months pay faster, slow months pay less.

Why it matters

It fits businesses with real, verifiable revenue and thin files - the underwriter is buying your sales stream, not your credit history. The same flex that helps in slow months hides a high cost in strong ones.

Key facts

• The repayment multiple, not a rate, is the price: divide total repayment by the advance and annualize it against your revenue curve.
• Fast repayment in a boom raises the effective annualized cost - the funder gets their multiple sooner.
• Qualification leans on linked bank or processor data: 6-12 months of deposits is the core document.
• It sits between MCAs and loans on the cost spectrum; read whether the agreement is a loan or a purchase of future receipts - the legal protections differ.

In practice

1. M
2. o
3. d
4. e
5. l
7. t
8. h
9. e
11. r
12. e
13. p
14. a
15. y
16. m
17. e
18. n
19. t
21. a
22. g
23. a
24. i
25. n
26. s
27. t
29. y
30. o
31. u
32. r
34. s
35. l
36. o
37. w
38. e
39. s
40. t
42. r
43. e
44. a
45. l
46. i
47. s
48. t
49. i
50. c
52. m
53. o
54. n
55. t
56. h
57. ,
59. a
60. n
61. d
63. c
64. a
65. p
67. a
68. n
69. y
71. r
72. e
73. v
74. e
75. n
76. u
77. e
78. -
79. s
80. h
81. a
82. r
83. e
85. d
86. e
87. a
88. l
90. a
91. t
93. a
95. p
96. a
97. y
98. m
99. e
100. n
101. t
103. s
104. h
105. a
106. r
107. e
109. y
110. o
111. u
112. r
114. m
115. a
116. r
117. g
118. i
119. n
120. s
122. c
123. a
124. n
126. c
127. a
128. r
129. r
130. y
132. t
133. h
134. r
135. o
136. u
137. g
138. h
140. a
142. d
143. o
144. w
145. n
146. t
147. u
148. r
149. n
150. .