Funding guide
Revenue-Based Financing: Repay as You Earn
Revenue-based financing (RBF) provides upfront capital in exchange for a fixed percentage of future monthly revenue until a total repayment cap — typically 1.1x to 1.5x the amount funded — is reached. Payments rise and fall with revenue, making RBF popular with ecommerce and SaaS companies with recurring sales.
Last updated October 23, 2026
What is a revenue-based financing?
RBF is similar in concept to an MCA but is usually remitted monthly from total revenue rather than daily from card sales, and is common for online and subscription businesses.
Providers connect to your payment processor, bank or ecommerce platform to evaluate revenue trends.
- Amount
- $10k – $5M
- Term
- 6 – 36 months (variable)
- Cost
- 1.1x – 1.5x cap
- Speed
- 2 – 10 days
- Credit
- Revenue-focused
Source: industry estimates compiled by BusinessFundingQuote.com; actual terms are set by each provider.
Requirements
- Consistent monthly revenue (often $15k+)
- 6–12+ months of revenue history
- Healthy gross margins
Pros and cons
Pros
- Payments flex with revenue
- No equity given up
- Fast, data-driven approval
Cons
- Can cost more than loans
- Revenue share reduces cash in good months
- Less suited to low-margin businesses
Who it's best for
- Ecommerce brands
- SaaS and subscription businesses
- Marketing and inventory spend
Revenue-Based Financing vs alternatives
| Option | Amount | Term | Typical cost | Speed | Credit |
|---|---|---|---|---|---|
| Revenue-Based Financing | $10k – $5M | 6 – 36 months (variable) | 1.1x – 1.5x cap | 2 – 10 days | Revenue-focused |
| Merchant Cash Advance | $5k – $500k+ | 3 – 18 months | 1.10 – 1.50 factor | 24 – 72 hours | 500+ often accepted |
| Business Line of Credit | $10k – $500k | Revolving; draws 6–24 mo | 10% – 60% APR | 1 – 7 days | 600 – 680+ |
| Working Capital Loans | $5k – $1M | 3 – 24 months | Varies by product | 1 – 5 days | 550 – 680+ |
| Invoice Factoring | $10k – $10M | Per invoice (30–90 days) | 1% – 5% per 30 days | 1 – 3 days | Customer credit matters most |
Frequently asked questions
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Written by
BusinessFundingQuote Editorial Team
Small business finance writers
Reviewed by
Funding Review Desk
Reviewed for accuracy against current market practices
Rates and ranges on this page are typical market estimates for educational purposes, not offers. How we make money.