Key Takeaways
- Revenue-based funding repays as a percentage of monthly revenue — no fixed payment that ignores your business reality
- No citizenship required — Bankable evaluates your revenue performance, not your immigration paperwork
- Slow months mean smaller payments; strong months mean faster payoff — the model aligns with your business
- No equity dilution — you keep 100% of your business while accessing capital for growth
- Bankable's tranche structure releases capital in stages aligned with your business milestones
Revenue-based funding is a capital model where repayment is tied to a percentage of your monthly business revenue rather than a fixed dollar amount. If your business earns $50,000 in a month and your repayment rate is 8%, you pay $4,000. If you earn $30,000 in a slower month, you pay $2,400. The payment moves with your business — not against it.
How Revenue-Based Funding Differs from Traditional Loans
| Feature | Traditional Loan | Revenue-Based Funding |
|---|---|---|
| Payment structure | Fixed monthly payment | Percentage of monthly revenue |
| Slow month impact | Same payment — potential default risk | Lower payment automatically |
| Collateral | Often required | Revenue is primary collateral |
| Citizenship required? | Often yes (especially SBA) | No — Bankable has zero requirement |
| Equity impact | None | None |
| Decision speed | 2-90 days | 48 hours |
Bankable's Tranche Structure
Bankable doesn't just provide a single lump sum — we structure capital in tranches aligned with your business milestones. An initial tranche provides capital for an immediate need. As you deploy that capital and hit revenue milestones, subsequent tranches become available. This structure prevents over-leveraging and ensures capital is deployed when the business is ready to use it effectively.
Is Revenue-Based Funding Right for Your DACA Business?
Revenue-based funding works best for businesses that:
- Have consistent monthly revenue of $15,000 or more
- Experience some variability in monthly revenue (seasonal patterns, project-based income)
- Want to avoid fixed payment obligations that don't flex with business performance
- Want to maintain 100% ownership without equity dilution
- Need capital faster than traditional lending timelines allow
Frequently Asked Questions
Revenue-based funding is a capital model where repayment is a percentage of your monthly business revenue rather than a fixed payment. If revenue is high, you pay more; if revenue is low, you pay less. The payment adjusts automatically with your business performance.
Bankable advances a capital tranche based on your monthly revenue. Repayment is a set percentage of monthly revenue, drawn from your business bank account. As revenue grows, you pay more and complete repayment faster.
Repayment percentages vary based on your revenue, funding amount, and risk profile. Bankable structures repayment rates that allow your business to maintain adequate operating cash flow while repaying the tranche.
Similar but structured differently. A merchant cash advance (MCA) typically involves daily automatic deductions. Bankable's revenue-based tranche involves monthly revenue-percentage repayment, which is more flexible and generally less disruptive to daily cash flow.
Bankable reports to business credit bureaus. Timely repayment of a Bankable tranche can help build your business credit profile, which benefits future funding applications.
Yes. Early repayment reduces total interest or fees paid. Bankable allows early repayment without penalties.
No. Revenue-based funding is debt capital, not equity investment. You make repayments and maintain 100% ownership of your business. No shares, no board seats, no equity given up.
Bankable uses your gross business revenue as documented in your business bank statements. Repayment is calculated on this gross revenue figure.
Yes. Bankable's revenue-based funding is available for any legal business with sufficient monthly revenue, regardless of industry or the owner's immigration status.
Revenue-based repayment adjusts with your revenue. If you experience a significant revenue decline, contact Bankable's account team. We work with clients experiencing genuine business disruption to find workable solutions.