Revenue-Based Financing
Revenue-based financing gives your business capital today with repayments that scale automatically with your monthly revenue. Pay more when sales are strong, less when they slow down, and keep full ownership of your business. Unlike equity financing, there is no dilution. Unlike fixed-term loans, there is no rigid payment schedule. Rise connects businesses with revenue-based funding from $5,000 to $500,000. A capped total repayment means you know your exact cost upfront, with the flexibility to repay at the pace your revenue allows.
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What Is Revenue-Based Financing?
Revenue-based financing (RBF) is a funding model where you receive a lump sum of capital and repay it through a fixed percentage of your monthly revenue until a predetermined total repayment amount is reached. This structure means your payments automatically adjust: higher during strong months, lower during slow periods.
RBF sits between a traditional term loan (fixed payments regardless of revenue) and a merchant cash advance (daily deductions from sales). The key differences: RBF uses monthly revenue shares rather than daily holdbacks, and repayment is typically structured as a loan with a clear total cost cap rather than a purchase of future receivables.
Revenue-based financing is popular with businesses that have consistent but fluctuating revenue, including restaurants with seasonal swings, e-commerce companies with variable monthly sales, and service businesses with project-based income. There is no equity dilution, no collateral requirement, and no board seats to give up. Use our business loan calculator to estimate your repayment timeline.
Requirements to Qualify for Revenue-Based Financing
Personal FICO Score
550+
RBF is more accessible than traditional loans. Revenue consistency matters more than credit score, though a higher score can improve your terms.
Monthly Revenue
$10,000+
The lender uses your monthly revenue to calculate the advance amount and determine the repayment percentage. Stronger, more consistent revenue qualifies for larger amounts.
Time in Business
6+ Months
Lenders need enough operating history to evaluate your revenue patterns. Businesses with at least 6 months of consistent deposits are typically eligible.
Bank Account
Business Account Required
Used to verify revenue patterns and calculate your monthly repayment percentage. Personal accounts are not accepted.
Not sure if you qualify? RBF is designed for businesses with strong revenue that want flexible repayment. Rise evaluates your full revenue picture. Businesses across all industries are welcome, including healthcare practices with insurance reimbursement cycles and retail businesses with seasonal demand.
How Revenue-Based Financing Works
Receive a Lump Sum Advance
You receive funding as a single deposit, typically $5,000 to $500,000 based on your average monthly revenue. The advance amount is usually calculated as a multiple of your monthly sales, so stronger revenue qualifies for more capital.
Repay a Fixed Percentage of Monthly Revenue
Each month, a predetermined percentage of your revenue (typically 1% to 15%) is deducted for repayment. When sales are high, you repay faster. When sales dip, your payment decreases automatically.
Capped Total Repayment
Your total repayment is fixed upfront using a repayment cap (similar to a factor rate), typically 1.2 to 3.0 times the original advance. If you receive $100,000 with a 1.3 cap, you repay $130,000 total, regardless of how long it takes.
No Fixed End Date
Unlike a term loan with a set maturity, RBF ends when the total repayment amount is reached. This could be 6 months or 24 months depending on your revenue pace. There are no penalties for repaying faster.
See If You Qualify in Minutes
Find out how much revenue-based funding your business can access. The application takes less than 5 minutes and won't impact your credit score.
Pros & Cons of Revenue-Based Financing
Advantages
Payments Scale With Revenue
Pay more when business is strong, less during slow months. Your cash flow is never squeezed by a fixed payment you can't afford.
No Equity Dilution
Keep 100% ownership of your business. No investors, no board seats, no giving up a share of your company to access capital.
Known Total Cost
The repayment cap is disclosed upfront. You know exactly how much the financing costs before you accept, with no compounding interest surprises.
No Collateral Required
RBF is typically unsecured. You don't need to pledge real estate, equipment, or personal assets.
Faster Than Traditional Loans
Approval in days, not weeks. Most RBF providers can fund within 48 to 72 hours once approved.
Disadvantages
Higher Total Cost Than Traditional Loans
Repayment caps of 1.2x to 3.0x mean you repay significantly more than you borrow. A long-term loan or SBA loan offers lower total cost for businesses that qualify.
Revenue Must Be Consistent
If your monthly revenue is highly unpredictable or declining, RBF may not be the right fit. Lenders need confidence in your revenue trajectory.
Monthly Deductions Reduce Operating Cash
Even though payments flex, the monthly revenue share still reduces your available operating capital. Businesses with thin margins should model the impact carefully before committing.
Alternatives to Revenue-Based Financing
- Daily or weekly deductions from card sales rather than monthly revenue shares
- Faster funding, often with same-day or next-day approval and disbursement
- Lower credit score requirements than most RBF providers
- Higher total cost due to factor rates applied to the full advance amount
- Best for businesses with high card transaction volume that need immediate capital
- Revolving access: draw funds as needed rather than taking a lump sum
- Pay interest only on what you use, not the full credit limit
- Fixed monthly payments rather than revenue-based deductions
- Requires stronger credit profile than most RBF providers
- Better for ongoing working capital needs rather than a single capital injection
- Fixed payments on a set schedule, predictable but not revenue-adjusted
- Faster approval than traditional loans, comparable to RBF timelines
- Terms from 3 to 18 months with a clear payoff date
- Higher rates than long-term loans but lower than most RBF products
- Best when you need a defined repayment timeline rather than revenue-based flexibility
Frequently Asked Questions About
Revenue-Based Financing
Revenue-based financing (RBF) is a funding model where you receive a lump sum of capital and repay it through a fixed percentage of your monthly revenue. Payments automatically adjust, rising when sales are strong and falling during slow months, until a predetermined total repayment amount is reached.
Trusted by Small Businesses Across the USA
Fast Approval
As Little As 2 Hours
Funding Available
$5K to $5M
Businesses Funded
Across All 50 States
Revenue-Based Financing in Your State
Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Get Funding That Grows With You
Revenue-based financing adapts to your business. Repayments flex with your sales, so you never pay more than your revenue supports. Apply in minutes and get funded fast.