Revenue-Based Financing
No equity dilution
Ownership stays yours
Payments scale
Payments rise & fall with revenue
Fast decisions
Fast access to capital
How It Works
How It Works
How It Works
Revenue-Based Financing (RBF) gives you non-dilutive growth capital today and lets you repay through a small, fixed percentage of your sales—so payments naturally rise in strong months and ease in slower ones. Typical advances range from $25,000 to $1,000,000+ with a repayment cap (often 1.2×–1.6× of the advance). Most businesses see funding in 1–7 business days once documents are verified, and the projected payoff window is usually 6–18 months depending on your revenue pace.
RBF works best for companies with consistent, verifiable sales that want flexibility without giving up equity. It’s a fit for inventory purchases, marketing, product expansion, and other initiatives tied to revenue. Compared with traditional loans, you won’t have a fixed installment; instead, you remit a set percentage (commonly 5%–20%) of weekly or monthly gross revenue until the cap is reached.
To qualify, you’ll generally need to be a US-based Sole Prop, LLC, or Corp with 6–12+ months in business, a business bank account, and steady revenue (bank or processor-verified). Expect a practical document list: government ID, voided business check, the last 6–12 months of bank statements, processor statements (if applicable), and basic financials for higher advance amounts.
⇒ Pros: no equity dilution or board seats; payments flex with sales, easing cash‑flow strain; fast access compared with traditional lending; and aligned incentives—grow revenue to finish sooner.
⇒ Cons: total cost (repayment cap) can be higher than bank loans; requires consistent, verifiable revenue and connected accounts; not ideal for very low‑margin or highly volatile sales; and daily/weekly remittances can require careful cash planning.
Key advantages include no equity dilution, speed to capital, and payment flexibility that helps protect cash flow. Considerations: the total cost can be higher than bank loans, and frequent remittances require thoughtful cash planning. Used responsibly—aimed at initiatives with near-term payback—RBF can help you fund, grow, and re-up as you scale. Ready to explore options? Apply for revenue-based financing now!
Compare at a glance
| Funding Option | Flexibility | Speed | Typical Cost |
|---|---|---|---|
| Revenue‑Based Financing | High (payments vary) | Fast | Medium |
| Term Loan | Medium (fixed) | Medium | Low–Medium |
| Merchant Cash Advance | Medium | Very Fast | Medium–High |
Compare at a glance
| Funding Option | Flexibility | Speed | Typical Cost |
|---|---|---|---|
| Revenue‑Based Financing | High (payments vary) | Fast | Medium |
| Term Loan | Medium (fixed) | Medium | Low–Medium |
| Merchant Cash Advance | Medium | Very Fast | Medium–High |
Growth capital you repay as a fixed percentage of future revenue until a pre-agreed cap (e.g., 1.3×–1.8× the amount funded) is reached.
Loans have fixed payments and interest; RBF payments flex with revenue. Equity sells ownership; RBF doesn’t dilute (though some deals include small warrants).
Businesses with predictable revenue and healthy margins (SaaS, subscription, e-commerce). Common uses: inventory, marketing/CAC, working capital for repeatable growth loops.
Often a multiple of monthly revenue/GMV or MRR (for SaaS). Typical share rate: ~1%–10% of revenue; repayment cap: ~1.2×–2.0×; soft term: 12–48 months with a long-stop date.
Cost is set by the cap multiple. Compare total dollar payback, expected payoff time, share rate, fees, and any long-stop/balloon rules; you can model an implied APR based on your revenue forecast.
Revenue scale and stability, margins, churn/retention (for SaaS), LTV/CAC, cohort performance, channel concentration, and connected data from bank/PSPs/accounting.
IDs, bank statements, read-only connections to payment processors (Stripe/Shopify/Amazon/PayPal), accounting (QuickBooks/Xero), and basic financials. Personal guarantees/collateral are less common but possible.
You remit the agreed % of revenue (monthly is common; some weekly/daily) via automated ACH. Payments rise when sales rise and fall when sales dip—seasonality extends or shortens the payoff.
Many contracts require the remaining balance up to the cap regardless of timing (limited prepay discounts). If you haven’t hit the cap by the long-stop date, a residual/balloon may be due—confirm in writing.
Over-committing revenue share, stacking multiple RBFs, opaque “revenue” definitions, aggressive remedies, high caps, heavy fees, or strict long-stop clauses. Ensure terms align with margins, seasonality, and cash buffers.
Growth capital you repay as a fixed percentage of future revenue until a pre-agreed cap (e.g., 1.3×–1.8× the amount funded) is reached.
Loans have fixed payments and interest; RBF payments flex with revenue. Equity sells ownership; RBF doesn’t dilute (though some deals include small warrants).
Businesses with predictable revenue and healthy margins (SaaS, subscription, e-commerce). Common uses: inventory, marketing/CAC, working capital for repeatable growth loops.
Often a multiple of monthly revenue/GMV or MRR (for SaaS). Typical share rate: ~1%–10% of revenue; repayment cap: ~1.2×–2.0×; soft term: 12–48 months with a long-stop date.
Cost is set by the cap multiple. Compare total dollar payback, expected payoff time, share rate, fees, and any long-stop/balloon rules; you can model an implied APR based on your revenue forecast.
Revenue scale and stability, margins, churn/retention (for SaaS), LTV/CAC, cohort performance, channel concentration, and connected data from bank/PSPs/accounting.
IDs, bank statements, read-only connections to payment processors (Stripe/Shopify/Amazon/PayPal), accounting (QuickBooks/Xero), and basic financials. Personal guarantees/collateral are less common but possible.
You remit the agreed % of revenue (monthly is common; some weekly/daily) via automated ACH. Payments rise when sales rise and fall when sales dip—seasonality extends or shortens the payoff.
Many contracts require the remaining balance up to the cap regardless of timing (limited prepay discounts). If you haven’t hit the cap by the long-stop date, a residual/balloon may be due—confirm in writing.
Over-committing revenue share, stacking multiple RBFs, opaque “revenue” definitions, aggressive remedies, high caps, heavy fees, or strict long-stop clauses. Ensure terms align with margins, seasonality, and cash buffers.
Frequently Asked Questions
Growth capital you repay as a fixed percentage of future revenue until a pre-agreed cap (e.g., 1.3×–1.8× the amount funded) is reached.
Loans have fixed payments and interest; RBF payments flex with revenue. Equity sells ownership; RBF doesn’t dilute (though some deals include small warrants).
Businesses with predictable revenue and healthy margins (SaaS, subscription, e-commerce). Common uses: inventory, marketing/CAC, working capital for repeatable growth loops.
Often a multiple of monthly revenue/GMV or MRR (for SaaS). Typical share rate: ~1%–10% of revenue; repayment cap: ~1.2×–2.0×; soft term: 12–48 months with a long-stop date.
Cost is set by the cap multiple. Compare total dollar payback, expected payoff time, share rate, fees, and any long-stop/balloon rules; you can model an implied APR based on your revenue forecast.
Revenue scale and stability, margins, churn/retention (for SaaS), LTV/CAC, cohort performance, channel concentration, and connected data from bank/PSPs/accounting.
IDs, bank statements, read-only connections to payment processors (Stripe/Shopify/Amazon/PayPal), accounting (QuickBooks/Xero), and basic financials. Personal guarantees/collateral are less common but possible.
You remit the agreed % of revenue (monthly is common; some weekly/daily) via automated ACH. Payments rise when sales rise and fall when sales dip—seasonality extends or shortens the payoff.
Many contracts require the remaining balance up to the cap regardless of timing (limited prepay discounts). If you haven’t hit the cap by the long-stop date, a residual/balloon may be due—confirm in writing.
Over-committing revenue share, stacking multiple RBFs, opaque “revenue” definitions, aggressive remedies, high caps, heavy fees, or strict long-stop clauses. Ensure terms align with margins, seasonality, and cash buffers.
Revenue-based financing through Kredline was a perfect fit for our seasonal sales. We got funded fast, and the remittances flexed with our revenue, so cash flow never felt squeezed. Terms were clear, the dashboard made tracking simple, and our rep kept us informed from application to payoff. We’ll use Kredline again for our next growth push.
Priya D. – CEO @ Sunlit Skincare Co.
Revenue-based financing through Kredline was a perfect fit for our seasonal sales. We got funded fast, and the remittances flexed with our revenue, so cash flow never felt squeezed. Terms were clear, the dashboard made tracking simple, and our rep kept us informed from application to payoff. We’ll use Kredline again for our next growth push.
Priya D. – CEO @ Sunlit Skincare Co.
Revenue-based financing through Kredline was a perfect fit for our seasonal sales. We got funded fast, and the remittances flexed with our revenue, so cash flow never felt squeezed. Terms were clear, the dashboard made tracking simple, and our rep kept us informed from application to payoff. We’ll use Kredline again for our next growth push.
Priya D. – CEO @ Sunlit Skincare Co.
