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Revenue-based financing
Get a lump sum now in exchange for a share of your future sales. Payments move with your revenue, so a slow week means a smaller payment. You may also hear this called a merchant cash advance.
At a glance
Amount
$5K–$2M
Term
3–18 months
Funding speed
As soon as 24 hours
Payments
A share of daily or weekly sales
How revenue-based financing works
Approval is based mainly on your sales history, not just your credit score. That makes it an option for newer businesses and owners who are rebuilding credit.
Repayment is a set percentage of your sales, or a fixed amount debited from your business account, until the agreed total is paid. Your offer shows that total before you sign.
Good for
- Restaurants and shops with daily card sales
- Seasonal businesses
- Owners rebuilding their credit
- Time-sensitive opportunities
Is it right for you?
A good fit if
- You have steady daily or weekly sales
- You need funds within a day or two
- Your credit history is still being built
Consider another option if
- You want the lowest total cost: SBA loans
- You’d prefer fixed, predictable payments: business term loans
What you’ll need to apply
Have these ready and the application takes about 10 minutes.
- Business bank statements from the last 3 months
- A government-issued photo ID
- Your business tax ID (EIN)
- Basic details: time in business, monthly revenue and industry
Typical minimums
Time in business
6 months or more
Monthly revenue
$10,000 or more
Credit score
500 or higher
Requirements vary by product. An advisor can tell you what you qualify for.
Questions about revenue-based financing
Don’t see your question? Call (866) 451-9260.
Is revenue-based financing a loan?
No. It’s the purchase of a portion of your future sales. That’s why approval focuses on revenue and why repayment moves with your sales.
How is the cost calculated?
Instead of an interest rate, you’ll see a factor rate. Multiply it by the amount funded to get the total you’ll repay. Your offer lists that total up front.
What happens if my sales drop?
If you repay a percentage of sales, your payments shrink when sales do. If business slows, call your advisor right away to talk about your options.
Other ways to fund your business
Business term loans
One lump sum, repaid in fixed payments over a set term.
Amount
$25K–$5M
Term
1–5 years
Funding
As soon as 2 business days
Business line of credit
Draw funds when you need them and pay only on what you use.
Amount
$10K–$500K
Term
Revolving
Funding
As soon as 24 hours
Equipment financing
Buy or lease the equipment your business runs on.
Amount
$10K–$5M
Term
1–7 years
Funding
As soon as 2 business days
SBA loans
Long terms and low rates, backed by the U.S. Small Business Administration.
Amount
Up to $5M
Term
Up to 25 years
Funding
Usually 30–90 days
Talk to a funding advisor
Get answers about your options with no obligation. We’ll explain every offer in plain language.