Key Takeaways
- Revenue-based funding advances capital against your future revenue — not your immigration status
- Repayment is a percentage of daily or weekly sales — flexible, not fixed
- No collateral required — your revenue stream is the security
- No green card, no fixed monthly payment, no prepayment penalty
- Ideal for businesses with consistent but variable revenue
Revenue-based funding is a form of business capital that works differently from traditional loans. Instead of borrowing a fixed amount at a fixed interest rate with fixed monthly payments, you receive an advance against your future revenue and repay a percentage of your actual daily or weekly deposits. The payment flexes with your revenue — when business is strong, more goes to repayment; when business is slow, less is deducted. There is no fixed monthly bill that ignores your actual cash position.
How Revenue-Based Funding Works — Step by Step
- Apply: You submit 3-6 months of bank statements, your EAD, EIN, and business entity documents.
- Review: Bankable analyzes your revenue history — average monthly deposits, growth trend, consistency. Decision in 48 hours.
- Advance: You receive a lump sum — typically 1-2x your monthly revenue — deposited into your business bank account.
- Repayment begins: Daily or weekly, a fixed percentage (typically 5-20%) of your bank deposits is automatically deducted. This continues until the advance plus the factor amount is repaid.
- Renew: Once repaid (or when your balance reaches a threshold), you can draw again without a new application.
The Factor Rate — What It Means
Revenue-based funding does not use an interest rate. It uses a factor rate — a multiplier on the amount advanced. A factor rate of 1.25 on a $50,000 advance means you repay $62,500 total ($50,000 + $12,500 cost). The factor is determined by your revenue, industry, and risk profile. Factor rates at Bankable typically range from 1.15 to 1.45.
Why It Works for Asylees
Revenue-based funding is perfectly structured for asylee business owners because: (1) it requires no collateral — no house, no car, no personal guarantee based on immigration-restricted assets; (2) it requires no fixed monthly payment that could create default risk during a slow month; (3) the qualification is entirely revenue-based — your immigration timeline is irrelevant; (4) it can be deployed within days, not months.
Frequently Asked Questions
Revenue-based funding is a business capital advance where repayment is tied to a percentage of your actual revenue, not a fixed monthly payment. You receive capital upfront and repay from a share of your daily or weekly bank deposits.
An interest rate accrues over time — the longer you take to repay, the more you pay. A factor rate is a fixed multiplier — you agree upfront to repay $1.25 for every $1 advanced, regardless of repayment speed.
Your repayment automatically decreases because it's a percentage of deposits. A month with half your normal revenue means half the normal repayment amount.
Structurally similar, but not identical. An MCA typically deducts from credit card settlements specifically. Bankable's revenue-based funding deducts from total bank deposits. See our merchant cash advance page for details.
No. Revenue-based funding is unsecured — your future revenue stream is the security, not a physical asset.
Yes. You can pay off the outstanding balance early without a prepayment penalty at Bankable.
Factor rates range from 1.15 to 1.45 depending on revenue, industry, and operating history. Contact Bankable for a specific quote.
Repayment percentage (typically 5-20% of daily deposits) is set to allow repayment within a defined period while keeping your cash flow manageable. Bankable sets it based on your revenue pattern.