Key Takeaways
- Revenue-based funding repays as a percentage of daily revenue — not a fixed monthly payment
- No equity taken — you keep full ownership of your business
- No green card or citizenship required
- Repayment flexes with your business — slower days mean smaller payments
- Ideal for businesses with variable, seasonal, or growing revenue
Revenue-based funding is a form of business capital where repayment is tied directly to your business's revenue — not to a fixed monthly schedule. For O-1 business owners, this structure is superior to traditional fixed-payment loans in almost every scenario involving variable, seasonal, or growing revenue. Bankable's revenue-based funding is available up to $5M for qualifying O-1 businesses, with no green card required, no equity taken, and 48-hour decisions. Check your Bankability Score.
How Revenue-Based Funding Works
Bankable advances a lump sum of capital to your business. In exchange, you agree to repay a percentage of your daily business revenue until the total repayment amount (advance plus fees) is repaid. The repayment percentage is fixed; the dollar amount varies with your revenue.
Revenue-Based Funding Example
| Factor | Example Value |
|---|---|
| Advance Amount | $100,000 |
| Total Repayment | $130,000 (factor rate 1.30) |
| Daily Repayment % | 12% of daily revenue |
| Business Revenue (typical day) | $3,000/day |
| Daily Repayment (typical day) | $360 |
| Business Revenue (slow day) | $1,500/day |
| Daily Repayment (slow day) | $180 |
| Estimated Payoff | ~90 business days at average revenue |
Revenue-Based vs. Fixed-Payment Loans
A fixed-payment loan requires the same payment regardless of revenue. If your restaurant does $5,000/day in July and $1,500/day in February, a fixed $500/day payment destroys February cash flow. A revenue-based 12% repayment is $600 in July and $180 in February — aligned with what you're actually earning. This alignment is the core structural advantage of revenue-based funding for seasonal and variable-revenue businesses.
What Revenue-Based Funding Is Not
- Not equity — you do not give up any ownership
- Not a loan in the traditional sense — there is no fixed maturity date
- Not tied to credit score — revenue is the primary evaluation factor
- Not an advance on specific invoices (that is factoring, which is different)
Who Revenue-Based Funding Is Best For
Revenue-based funding is optimal for businesses with: variable or seasonal revenue, strong gross margins (40%+), growing month-over-month revenue, and existing consistent revenue of $15,000+/month. It is less optimal for very thin-margin businesses (under 20% gross margin) where the repayment percentage creates meaningful cash flow pressure. Compare all available product structures.
Frequently Asked Questions
Revenue-based funding advances capital and repays it as a percentage of daily business revenue. The dollar repayment varies with revenue; the percentage is fixed.
No. You do not give up any ownership. It is non-dilutive.
No. Bankable's revenue-based funding requires business revenue, not immigration status.
Factor rates typically range from 1.20 to 1.50 depending on revenue strength, operating history, and risk profile.
Repayment is collected as a daily ACH debit from your business bank account — a fixed percentage of previous day's revenue, or a fixed daily amount based on expected revenue.
Revenue-based repayment adjusts with revenue. A significant drop may extend the repayment timeline but does not trigger default in the same way a missed fixed payment would.
Yes. Early payoff is available and may involve a discount on the remaining total repayment amount.
Generally, gross margins of 40%+ make revenue-based funding straightforward. Thin-margin businesses (under 20%) should discuss the specific math with Bankable.
The structures are similar — both repay as a percentage of daily revenue. MCAs often have higher factor rates and shorter terms. Bankable's revenue-based funding offers higher amounts and longer terms than typical MCAs.
Up to $5M for qualifying O-1 businesses.