Capital That Moves With Your Revenue
Explore business financing structures where repayment may be tied to business revenue. Terms, eligibility, repayment structure, and guarantees vary by program and lender.
How Revenue-Based Financing Works
Revenue-based financing can use a repayment structure tied to a percentage of business revenue rather than a traditional fixed-payment loan structure.
Actual repayment frequency, total cost, factor rate, term, guarantees, and underwriting standards depend on the specific financing provider and approved offer.
Businesses That May Consider RBF
- ●SaaS and subscription businesses
- ●Service companies with recurring revenue
- ●Seasonal businesses
- ●E-commerce companies
- ●Staffing and consulting firms
- ●Healthcare practices
- ●Businesses prioritizing cash-flow-based underwriting
Typical Underwriting Factors
- ●Time in business
- ●Monthly revenue history
- ●Business bank statements
- ●Credit profile where applicable
- ●Existing obligations
- ●Industry and revenue consistency
- ●Business entity and ownership information
Illustrative Repayment Example
A simplified example showing how a revenue-linked payment could vary with monthly sales.
| Month | Revenue | Illustrative 10% Payment | Illustrative Balance |
|---|---|---|---|
| Month 1 | $80,000 | $8,000 | $117,000 |
| Month 2 | $95,000 | $9,500 | $107,500 |
| Month 3 | $110,000 | $11,000 | $96,500 |
| Month 4 | $75,000 | $7,500 | $89,000 |
| Month 5 | $120,000 | $12,000 | $77,000 |
Illustration only. Actual payment structure, fees, terms, timing, and total repayment depend on the approved financing offer.
Revenue-Based Financing vs. Traditional Business Loan
| Feature | Revenue-Based Financing | Traditional Business Loan |
|---|---|---|
| Payment Structure | May vary with revenue | Typically fixed or scheduled |
| Collateral | May not be required | May be required |
| Personal Guarantee | Program dependent | Common on many programs |
| Underwriting Focus | Revenue and cash flow | Credit, cash flow, collateral, and program criteria |
| Best Fit | Businesses seeking flexible cash-flow-linked structures | Businesses seeking conventional term financing |
Ready to Explore Flexible Business Capital?
Submit your business information so LoanExis can review available financing programs and help identify options that may fit your revenue profile.