Revenue-Based Funding Explained for K-1 Visa Holders

Key Takeaways

Revenue-based funding repays as a percentage of daily or weekly business revenue — not a fixed payment.
Slow months mean lower payments; strong months mean faster payoff.
No collateral, no green card, no multi-year tax returns required.
Bankable's factor rate is based on revenue stability — not credit score alone.
This product was specifically designed for business owners whose immigration status creates bank barriers.

For K-1 visa holders running U.S. businesses in Adjustment of Status, the most important financial product to understand in 2026 is revenue-based funding. It is the capital model that unlocks access when traditional banks say no, when SBA lenders are legally barred from helping, and when your business needs to grow faster than your immigration timeline allows.

This guide explains exactly how revenue-based funding works, how the math compares to a traditional loan, and why the structure is particularly well-suited to the financial reality of K-1 EAD business owners.

What Is Revenue-Based Funding?

Revenue-based funding (also called a merchant cash advance or revenue-based financing) is a capital product in which a lender provides a lump sum to your business in exchange for a fixed percentage of your future revenue until a predetermined total is repaid. Unlike a loan, there is no fixed monthly payment, no maturity date, and no interest rate in the traditional sense.

Instead, the economics are expressed through a factor rate. If Bankable funds your business $100,000 at a 1.35 factor rate, you repay a total of $135,000. The daily or weekly remittance is calculated as a percentage (typically 8–15%) of your business's revenue during that period. If your business makes $10,000 one week, $1,200 goes to Bankable. If revenue drops to $5,000, the payment drops to $600 automatically — no penalty, no late fee, no renegotiation required.

How the Repayment Percentage Is Set

Bankable's underwriters set the remittance rate based on your business's average monthly revenue, operational expenses visible in bank statements, and revenue variability. A business with extremely consistent revenue (like a subscription-based service or a medical practice) may receive a higher remittance rate because the lender has confidence in the payment stream. A highly seasonal business may receive a lower rate to avoid cash flow stress during slow periods.

Factor Rate vs. APR — What K-1 Holders Need to Know

Factor rates are not the same as annual percentage rates (APR). A 1.35 factor rate applied to a $100,000 advance repaid over 12 months is mathematically equivalent to a high APR. However, if the advance is repaid in 6 months due to strong revenue, the effective cost drops significantly. K-1 holders in growing industries — restaurants, healthcare, e-commerce — often repay faster than the baseline estimate, reducing their effective cost of capital.

The key metric to evaluate is total cost of capital, not APR. $35,000 in cost to generate $200,000 in additional revenue is an excellent return. Compare this to losing a lease, missing an inventory order, or failing to hire a key employee because capital was unavailable.

$25K–$5M

Funding Range

% of Revenue

Repayment Method

48 hrs

Approval Time

Fixed Payments

The K-1 Funding Challenge

Bankable Solutions for K-1 Business Owners

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Why Banks Fail K-1 Entrepreneurs

Traditional banks evaluate business loan applications through a lens built for citizens and permanent residents. They demand two or more years of US tax returns, a Social Security number with a long credit history, and often require a green card or citizenship as an unstated condition. K-1 holders in the adjustment of status period rarely meet all these criteria simultaneously.

Bankable funds revenue, not immigration documents. Check your Bankability Score in 5 minutes with no hard credit pull. Explore SBA alternatives and revenue-based products.