Revenue-Based Financing

Your payment scaleswith your revenue.

Revenue-based financing links your repayment to a percentage of your monthly sales. Strong months pay faster. Slow months pay less. No fixed payment that ignores your cash flow.

How your payment is calculated

Monthly Revenue

Remittance Rate

Monthly Payment

$500K

Max available

24h

Decision time

Fixed payment

US states served

Payment scales with revenue

Slow month = smaller payment. No fixed obligation that ignores your cash flow.

No collateral required

Revenue-based financing is underwritten on cash flow, not assets.

$25K to $500K available

Advance amounts based on your monthly revenue profile.

24-hour decision

Fast review focused on your revenue record.

The math behind RBF

One formula replaces a fixed payment schedule.

Revenue-based financing does not use traditional interest rates or fixed monthly payments. Your payment is a percentage of what you actually earned that month.

Monthly Revenue

$80,000

Remittance Rate

Monthly Payment

$6,400

Remittance rates typically range from 6% to 20% depending on lender, advance amount, and business profile. Confirm exact rate with your advisor.

Flexible by design

Your payment moves with your business.

This is what makes revenue-based financing different from a term loan or working capital advance.

Scenario

Monthly Revenue

Remittance Rate

Payment

Slow month

Lower revenue = smaller payment

$40,000

$3,200

Average month

Baseline performance

$80,000

$6,400

Strong month

Higher revenue = faster payoff

$130,000

$10,400

Same remittance rate in all three scenarios. Revenue is the variable — not the rate.

Revenue scenarios

Three revenue levels, three payment outcomes.

Illustrative examples showing how payment scales across different revenue levels at an 8% remittance rate.

Small retail — Memphis, TN

Monthly revenue

$50,000

Remittance rate

8% remittance

Est. monthly payment

~$4,000

Lower revenue business with modest capital needs. Manageable payment aligned to actual output.

Restaurant group — Atlanta, GA

Monthly revenue

$85,000

Remittance rate

8% remittance

Est. monthly payment

~$6,800

Mid-size operator with stable monthly revenue. Payment stays proportional through seasonal swings.

E-commerce operator — Houston, TX

Monthly revenue

$150,000

Remittance rate

8% remittance

Est. monthly payment

~$12,000

High-revenue operator who benefits from fast payoff on strong months.

Examples are illustrative only. Actual remittance rates, advance amounts, and total costs vary by lender, file, and program. Not a financing offer.

See if you qualify — takes under 5 minutes.

Payments flex with your revenue. No fixed monthly obligation.

Who it fits

Revenue-based financing works best for specific business profiles.

It is not the right tool for every business. Here are the operators who benefit most.

Seasonal businesses with revenue swings

If your revenue varies month to month by 30% or more, a fixed monthly payment can crush you in slow months. Revenue-based financing scales with your actual performance.

High-growth operators with strong topline

Businesses growing fast with increasing revenue benefit from an RBF structure because strong months pay down the advance quickly — reducing total cost.

Retail and e-commerce with card revenue

Revenue-based financing originated in businesses with predictable card processing volume. High-volume retail, e-commerce, and restaurant operators are ideal candidates.

Businesses that want flexibility over fixed obligation

If you value cash flow flexibility and are willing to accept a potentially higher effective cost in exchange for payment that moves with your revenue, RBF is worth considering.

Revenue-based financing is not ideal for businesses with very low or highly unpredictable revenue, or those seeking long-term capital at the lowest possible cost. A term loan or line of credit may be a better fit. Talk to an advisor to compare.

Honest assessment

Advantages and considerations — both sides.

We present both so you can make an informed decision.

Advantages

No fixed monthly payment — scales with actual revenue
No collateral required for most programs
Flexible qualification — cash flow focused, not credit focused
Faster access than traditional bank financing
No prepayment penalty in most programs — pay off early with no cost
Aligned incentive: lender benefits when your business grows

Considerations

Effective cost (factor rate) can be higher than traditional term loan APR
Daily or weekly remittance means real-time cash flow impact
Not ideal for businesses with very low margin or thin cash flow
Total cost is fixed upfront — you pay the agreed factor regardless of repayment speed in many programs
Not a long-term capital solution — typical terms are 6 to 18 months

Ask your advisor to compare the effective cost of revenue-based financing against alternatives available for your specific file before committing.

RBF vs. term loan

Two different capital structures — here is the difference.

Understanding the structural difference helps you choose the right tool.

Feature

Revenue-Based

Term Loan

Payment structure

% of monthly revenue

Fixed monthly amount

Slow month impact

Payment automatically lower

Same payment regardless

Strong month impact

Faster payoff

No change to schedule

Collateral

None required (most programs)

None required (most files)

Effective cost

Factor rate — often higher APR equivalent

Interest rate — potentially lower

Qualification

Cash flow and revenue focused

Credit and revenue reviewed

Term length

6 – 18 months typical

12 – 60 months

Neither structure is universally superior. The right choice depends on your revenue profile, cash flow variability, and capital cost tolerance.

Revenue-based financing fits your business. Ready to apply?

Free to apply. No hard credit pull. Advisor responds in 1 business day.

Approval criteria

What lenders look at in a revenue-based file.

Revenue-based financing is underwritten primarily on revenue — not collateral or credit score alone.

Monthly revenue

Bank statements are the primary underwriting document. Lenders look at average monthly deposits over the last 3 to 6 months.

$15,000+ per month

Time in business

Established cash flow history is important. Most programs require at least 6 to 12 months of operating history.

Minimum 6 months

Credit profile

Revenue-based financing has lower credit requirements than unsecured term loans. The revenue record carries more weight.

Starts around 500–550

Revenue consistency

Consistent monthly deposits are more important than peak revenue. Lenders want to see predictable inflow patterns.

Consistent 3-month trend

Existing obligations

Existing advances or loans are reviewed. Stacking multiple revenue-based advances is evaluated case by case.

Reviewed case by case

How it works

From application to funded in four steps.

Revenue-based financing is designed for speed. No branch visits. No 90-day committee review.

Apply online

Complete our short intake in under 5 minutes. Provide basic business info and 3 months of bank statements.

Revenue review

A lendfloCapital advisor analyzes your monthly revenue pattern and identifies the best-fit program and advance amount.

Receive your offer

Get a clear term sheet: advance amount, factor rate, total payback amount, and remittance percentage. Review before committing.

Funded

Sign electronically. Funds deposited to your business account, typically within 1 to 2 business days.

Common questions

What business owners ask about revenue-based financing.

Honest answers about how it works and whether it fits your business.

A remittance rate is the percentage of your monthly gross revenue that goes toward repaying the advance. If your remittance rate is 8% and you bring in $80,000 in a month, $6,400 goes toward repayment. The rate stays fixed — your revenue determines the actual payment amount.

Still have questions? Talk to an advisor

Questions answered — now let's get you funded.

Apply in minutes. A lendfloCapital advisor matches you to the right option.

Ready to apply?

Get revenue-based financing options today.

Tell us your monthly revenue and funding goal. A lendfloCapital advisor reviews your cash flow profile and presents the best-fit revenue-based program from our lender network.

(214) 299-6096

Prefer to walk through the math first? Call and speak with a lendfloCapital advisor who specializes in revenue-based financing.

40K+

businesses funded

24h

typical decision

$500K

max available

states served

No fixed payment

Revenue-based repayment

No hard pull to start

No collateral required

Free application

Get revenue-based financing options

Under 5 minutes. No obligation. No hard credit pull.

Important disclosure: lendfloCapital is a financing broker, not a direct lender. All financing is subject to eligibility, lender approval, verification, and final documentation. Factor rates, remittance rates, and advance amounts vary by lender and file. This page is for informational purposes only and does not constitute a financing offer.

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