Revenue-Based Financing
Short answer: Revenue-based financing gives you a lump sum that you repay as a fixed percentage of your ongoing sales (or a fixed daily/weekly debit), instead of a fixed monthly loan payment. When sales are strong you pay more; when they slow, you pay less — so repayment flexes with your cash flow.
Revenue-based financing gives your business a lump sum now and collects repayment as a slice of your future sales — so what you owe rises and falls with your revenue. It’s built for businesses with strong, steady deposits but imperfect credit: approvals reach down to a 500 credit score, and funding usually lands in 24–48 hours. Fundmerica matches you to revenue-based offers and to lower-cost products you may also qualify for.
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How Revenue-Based Financing Works
- You get a lump sum based on your monthly revenue — typically up to one month of deposits.
- You repay a fixed percentage of sales (or a set daily/weekly debit) until the agreed payback amount is met.
- Payments flex with cash flow — a slow week costs you less than a strong one.
There’s no fixed maturity date the way a term loan has; you finish when the payback amount is reached.
What It Costs
| Advance | Factor rate | Total payback | Cost of capital |
|---|---|---|---|
| $50,000 | 1.2 | $60,000 | $10,000 |
| $50,000 | 1.3 | $65,000 | $15,000 |
| $50,000 | 1.4 | $70,000 | $20,000 |
Revenue-based financing is priced by a factor rate, not an interest rate. Always convert the factor to a true APR so you can compare it head-to-head against a loan or line of credit.
Who It’s Built For
- Strong revenue, weak credit — consistent deposits but a FICO under 600.
- Seasonal or uneven sales — repayment that eases off in slow months.
- Speed over cost — you need cash in a day or two and accept paying more for it.
Who Should Compare First
If your credit is 600+ or your revenue is steady, a business line of credit, working capital loan, or SBA Express will almost always cost less. Revenue-based financing and the closely related merchant cash advance make the most sense when cheaper products are out of reach. If a bank just turned you down, see your options after a denial.
Check what you qualify for with a soft credit pull, or call (888) 490-3126.
Funding Based on Your Monthly Sales
Revenue-based funding is sized and repaid off one number: what your business actually deposits each month. A typical advance runs 50-120% of monthly revenue — a business depositing $50K per month might qualify for $25K-$60K — and repayment flexes as a fixed share of sales, so a slow week costs less than a strong one. There is no collateral and no fixed monthly payment. Offers are quoted with a factor rate (e.g. 1.25) instead of an interest rate; use our factor rate to APR calculator to translate any quote into cost terms you can compare.
Frequently Asked Questions
What is revenue-based financing?
Revenue-based financing gives you a lump sum that you repay as a fixed percentage of your ongoing sales (or a fixed daily/weekly debit), instead of a fixed monthly loan payment. When sales are strong you pay more; when they slow, you pay less — so repayment flexes with your cash flow.
How is revenue-based financing different from a loan?
A term loan has a fixed payment regardless of how your month goes. Revenue-based financing ties repayment to your actual sales, which protects cash flow in slow periods but can cost more in total. It also underwrites on revenue, so credit scores as low as 500 can qualify.
What credit score do I need?
As low as 500. Revenue-based financing weighs your monthly deposits and bank statements far more heavily than your FICO score, which is why it’s a common path for owners with bruised credit.
How is it priced?
Usually with a factor rate (often 1.1–1.4) rather than an APR. A 1.3 factor on $50,000 means $65,000 total payback. Because you repay quickly, the effective APR runs higher than the factor suggests — convert it with our calculator before signing.
How fast can I get funded?
Often same day to 48 hours, since underwriting focuses on recent bank and processing statements rather than a long document package.
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Options
Compare your options with one application and a soft credit pull — no impact to your score. Call (888) 490-3126 or apply now.
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