Key Takeaways
- Revenue-based funding (RBF) advances capital repaid as a percentage of daily revenue
- No fixed monthly payments — repayments flex with actual sales
- No equity dilution — RBF is debt, not investment
- Factor rate (not APR) determines total repayment amount
- Bankable offers RBF up to $5M for E-3 holders with 6+ months of revenue
Revenue-based funding (RBF) is a financing structure where a lender advances a lump sum to a business in exchange for a percentage of the business's future daily or monthly revenue until a predetermined total repayment amount is reached. It's neither equity (you don't give up ownership) nor traditional debt (there's no fixed monthly payment).
For E-3 holders, RBF is particularly well-suited because: (1) it doesn't require SBA participation, (2) it doesn't require citizenship or permanent residency, (3) flexible repayments match variable business revenue patterns, and (4) Bankable's RBF can be structured for almost any business with consistent monthly revenue.
The E-3 Funding Barrier
The SBA's 100% citizen/national ownership rule disqualifies every E-3 holder from government-backed loans — regardless of how long you've been in the US, how profitable your business is, or how strong your credit score is. Banks that primarily originate SBA loans have no viable product to offer you. That's not a reflection of your business quality; it's a policy gap that Bankable was built to bridge.
Revenue-based funding through Bankable requires no green card, no citizenship, and no SBA involvement. What matters: your business generates consistent revenue, has been operating for at least 6 months, and has a US business bank account. That's the core of what we evaluate. Check your Bankability Score to see your options in minutes.
Challenges in This Sector
- RBF terminology (factor rate, holdback percentage) is unfamiliar to many business owners
- Factor rate cost structure is different from APR — requires different comparison methodology
- Daily holdback can feel intrusive — understanding how it works reduces anxiety
- Comparing RBF offers from different lenders requires standardized calculation
- RBF is best suited to businesses with consistent daily revenue (credit card sales)
- Businesses with lump-sum payments (project-based) may need modified RBF structures
Funding Solutions for E-3 Holders
- Factor Rate Calculation: Total repayment = advance amount × factor rate. A $100K advance at 1.25x = $125K total repayment.
- Daily Holdback: 10–20% of daily credit card or bank settlement withheld until total repayment amount is reached.
- Flexible Timeline: If revenue is strong, you pay off faster. If revenue slows, payments reduce — no default for slower repayment.
- No Prepayment Benefit: Unlike interest-bearing loans, paying early on RBF typically doesn't reduce the total amount owed (total = advance × factor rate regardless of timing).
- Renewal: After repayment, businesses with strong performance can access new RBF advances.
RBF Example Calculation
| Item | Amount |
|---|---|
| Advance Amount | $100,000 |
| Factor Rate | 1.25x |
| Total Repayment | $125,000 |
| Daily Revenue | $5,000 |
| Daily Holdback (15%) | $750/day |
| Estimated Repayment Period | ~167 days (5.5 months) |
| Effective APR (approximate) | ~55% APR equivalent |
Important: The effective APR looks high compared to SBA's 8–11% APR. This is the real cost of non-SBA capital. For E-3 holders who can't access SBA at any rate, the relevant comparison is RBF versus no capital at all, or versus business growth foregone. Many businesses use RBF to fund growth that generates returns exceeding the cost of capital.
When RBF Makes Sense
RBF makes financial sense when the funded activity generates returns exceeding the cost. Using $100K in RBF at 1.25x to fund inventory that generates $200K in revenue = a $75K net gain after repaying $125K. The math works. Using RBF to cover operating losses does not.
Capital Products Available
Revenue-Based Funding
Up to $5M based on your monthly revenue. No green card, no SBA. 48-hour decisions.
Apply Now →Equipment Financing
Asset-backed funding for equipment — available to non-citizen business owners.
Check Eligibility →Frequently Asked Questions
RBF is a lump-sum advance repaid as a percentage of daily business revenue. Total repayment = advance × factor rate.
Factor rate is a flat multiplier on the total advance. APR is annualized interest on outstanding balance. They're not directly comparable — factor rate is always applied on the full advance amount.
Yes. Bankable's RBF is specifically designed for non-SBA borrowers including E-3 visa holders.
No. RBF is debt — you repay a fixed amount. You don't give up any business ownership.
Daily holdback decreases proportionally. The total repayment amount doesn't change, but the timeline extends.
Yes, but typically the total repayment amount (advance × factor rate) remains the same regardless of early repayment.
Bankable's factor rates range from approximately 1.15x (lowest risk businesses) to 1.45x (higher risk or shorter history).
10–20% of daily credit card or bank settlements, depending on your daily revenue and advance amount.
Functionally similar — both are revenue-based advances. The key differences are in lender quality, transparency, and factor rates. Bankable's RBF is structured more favorably than typical MCA products.
Yes. Bankable offers multiple product structures including term advances and working capital lines. Check your Bankability Score to see all available options.