Funding types

Revenue-based financing: funding based on your sales, not just your credit score

Revenue-based financing sizes funding to how much your business brings in. Here is how it works, how it differs from a merchant cash advance, and who it fits.

Best for: Consistent revenue, limited credit history
Speed: Often days
Credit: Flexible; revenue matters most
Repayment: Fixed daily or weekly payments
Collateral: Usually unsecured

With revenue-based financing, the amount you can get is based mainly on your business's revenue. Funders review your bank deposits, advance a lump sum, and collect repayment through fixed daily or weekly payments from your business account until an agreed total is repaid.

Revenue-based financing vs. merchant cash advance

Both lean on revenue. A merchant cash advance is typically repaid as a percentage of card sales, so payments rise and fall with daily sales. Revenue-based financing is commonly repaid with fixed daily or weekly ACH payments from your bank account, which makes the payment predictable.

Who it fits

Businesses with steady monthly deposits
Owners whose credit or time in business limits bank options
Businesses that sell through many channels, not just cards

Before you sign

Ask for the total repayment amount and payment schedule.
Model your slowest month: can you still make the payment?
Ask about early payoff terms.

Questions owners ask

What do I need to apply for revenue-based financing?

Typically a few months of business bank statements, an ID and basic business details.

Industries that use this most

Each page below covers what that industry borrows for, how many independent businesses of that kind are operating, and what an underwriter looks at in that sector.