Revenue-Based Financing - $10K to $2M
Funding tied to monthly revenue. Approval in hours, not weeks.
See if I qualifyRevenue-based financing repays as a percentage of your sales rather than a fixed monthly amount. When revenue dips, the payment drops with it; when sales are strong, you repay faster. Businesses with seasonal or uneven revenue often find this easier to live with than a fixed installment, and approval leans more on deposit history than on credit.
Who qualifies
- Usually 6+ months in business
- Roughly $10,000+ per month in consistent revenue
- Credit is weighed less heavily here - deposit history matters more
- Revenue flowing through a business bank account or card processor the lender can verify
Best for
Seasonal businesses, companies with lumpy revenue, inventory purchases ahead of a busy period, and owners who would rather have payments that breathe with sales than a fixed obligation.
What to check before you sign
- Total dollar cost, not the rate. Ask for the exact amount you will repay in total and the expected number of months. That is the only way to compare against a term loan.
- The holdback percentage. This is the share of daily or weekly revenue taken. A high holdback on thin margins can starve operations even when the headline cost looks acceptable.
- Reconciliation rights. Good agreements let you request an adjustment if revenue drops materially. Without this, a flat daily debit behaves like a fixed payment in your worst month.
- Stacking restrictions. Most agreements prohibit taking additional advances while one is outstanding, and breaching that can trigger default.
Frequently asked questions
How is revenue-based financing different from a loan?
A loan has a fixed payment and a fixed end date. Revenue-based financing takes an agreed percentage of your sales until a set total is repaid, so the payoff date moves with performance. There is no fixed monthly obligation, which lowers the risk of missing a payment in a slow month but makes total timing less predictable.
What does revenue-based financing cost?
It is typically quoted as a total repayment amount or factor rate rather than an annual interest rate, which makes direct comparison harder. Ask any provider for the total dollar cost and the expected repayment period, then compare that against a term loan for the same amount. Revenue-based products generally cost more than a term loan you qualify for.
Do I need good credit?
Less than for a bank loan. Providers weigh consistent revenue and deposit history most heavily, so businesses in the 500s and low 600s are often still workable. That is why revenue-based financing is a common route for companies that were declined for a conventional term loan.
How quickly can it fund?
This is one of the faster categories - often one to three business days after documents are submitted, since underwriting focuses on bank statements and processing history rather than a full financial review.
Can I pay it off early?
You can usually repay early, but because pricing is set as a fixed total rather than accruing interest, early payoff often does not reduce the cost much. Some providers offer a discount for early payoff. Always ask before signing - it materially changes the economics.
Why apply through Fundwise
- One application, every lender we partner with
- No hard credit pull to see your matches
- Free Money screening for tax credits included
- Real human concierge if you get stuck