At a Glance
What Is Revenue-Based Financing?
Revenue-based financing (RBF) is a capital structure where repayment is calculated as a fixed percentage of your gross monthly revenue rather than a fixed dollar amount. You agree on a total repayment amount (principal + cost of capital) upfront, and you retire that balance through monthly payments that flex with your top line.
If your agreed repayment rate is 10% and your revenue is $80,000 in March, you pay $8,000. If April brings in $120,000, you pay $12,000. The variance is automatic — no renegotiation, no penalty, no late fees. The product is structurally aligned with how businesses actually grow.
This is not equity financing. Bankable takes no ownership stake, no board seat, and no ongoing percentage of your business. Once the agreed repayment amount is settled, the capital relationship ends completely. Your equity is entirely yours.
How It Works
Check Your Score
Run your Bankability Score in 60 seconds to see estimated funding amount and likely repayment rate for your business profile.
Submit Application
Provide 3 months of bank statements, your EIN, and basic business information. No tax returns required for amounts under $250K.
Receive Offer
A capital advisor reviews your revenue profile and structures an offer — funding amount, repayment rate, and total cost — within 24 hours.
Capital Deployed
Accept the offer, sign electronically, and receive funds in your business account within 24–72 hours of final approval.
Requirements
Revenue-based financing eligibility is evaluated through the bankability framework — a multi-factor assessment that weighs revenue strength, consistency, and trajectory alongside time in business and industry risk profile.
- Minimum $15,000 in gross monthly revenue (consistent for 3+ months)
- 6+ months in business (12+ months for amounts above $500K)
- Active US business bank account with regular deposit activity
- SSN or ITIN (green card or citizenship not required)
- EIN (Employer Identification Number)
- No active bankruptcy proceedings
Credit score is reviewed but is not a hard cutoff. A business generating $50,000/month with consistent deposits and a 580 credit score is often more fundable than a business with a 700 score and erratic cash flow. Revenue is the primary underwriting signal.
RBF vs. Other Capital Products
| Feature | Revenue-Based Financing | MCA | Term Loan | SBA 7(a) |
|---|---|---|---|---|
| Repayment Structure | % of monthly revenue | % of daily sales | Fixed monthly payment | Fixed monthly payment |
| Equity Dilution | None | None | None | None |
| Approval Speed | 24–48 hours | Same day – 48 hours | 48–72 hours | 2–8 weeks |
| Citizenship Required | No | No | No | Yes (since 2026) |
| Min. Credit Score | None (revenue-based) | None | 580+ | 680+ |
| Best For | Growth-stage, variable revenue | Speed, any revenue type | Stable revenue, known costs | Lowest rates, strong profile |
Who Should Use Revenue-Based Financing
Ideal Candidates
RBF is structurally suited for businesses where revenue grows faster than expenses and where the timing of cash inflows is not perfectly predictable. Seasonally variable businesses — hospitality, retail, construction — benefit from a repayment structure that contracts during slower periods without penalty. High-growth businesses deploying capital into marketing or inventory benefit from the alignment between revenue acceleration and repayment pace.
Non-citizen business owners find RBF particularly valuable as an SBA alternative. Since the March 2026 SBA citizenship requirement, revenue-based financing has become the primary growth capital vehicle for H-1B, E-2, DACA, and TPS holders building US businesses. No citizenship, no green card, no problem — revenue is what qualifies you.
When to Consider an Alternative
If your business has predictable, fixed-cost operations and strong credit, an SBA 7(a) loan will carry a lower total cost of capital. If you need revolving access for ongoing expenses rather than a lump sum deployment, a business line of credit provides more flexibility. RBF delivers its highest value when the deployment of capital is expected to accelerate revenue growth — closing the loop between capital cost and repayment pace.
Frequently Asked Questions
Revenue-based financing is a funding structure where repayment is tied to a fixed percentage of your monthly gross revenue rather than a fixed payment amount. When your revenue is higher, you repay more that month; when revenue is lower, your payment decreases proportionally. You retain 100% equity ownership throughout.
Bankable offers revenue-based financing from $25,000 to $5,000,000. Your approved amount is calculated as a multiple of your average monthly revenue — typically 1x to 3x depending on your bankability profile, time in business, and industry. Use the Bankability Score tool for an instant estimate.
Repayment rates typically range from 5% to 20% of gross monthly revenue. The rate is fixed at origination and applies consistently. A 10% repayment rate on $100,000/month revenue means a $10,000 payment that month — regardless of when revenue arrived.
Both use revenue-based repayment, but the structure differs. An MCA is technically a purchase of future receivables and uses a factor rate to calculate total repayment. RBF is structured as a loan with a defined interest rate and term. RBF generally delivers lower effective costs for businesses with strong, stable revenue profiles.
No. Revenue-based financing involves zero equity transfer. You retain 100% ownership of your business. The capital is structured as debt — you repay principal plus cost of capital and the obligation ends. No board seats, no dilution, no investor oversight of your business decisions.
Related Capital Products
Working Capital Loans
Lump-sum capital for operational needs with fixed repayment schedules. Best for known, immediate expenses.
Merchant Cash Advance
Speed-optimized capital with same-day to 48-hour funding. Factor rate pricing, any revenue type.
Business Line of Credit
Revolving credit from $10K to $500K. Draw as needed, pay interest only on what you use.