The short answer
At a glance
| What it is | Capital repaid as a share of revenue until a set total is reached |
|---|---|
| Typical amounts | Varies with monthly revenue; MFE reviews $5,000 to $5,000,000 |
| Revenue guideline | Advance-style products commonly start around $7,500 a month at MFE |
| Time in business | Often 3+ months for advance-style products |
| Credit | Scores from 500 considered; deposits matter more than score |
| Cost structure | Fixed total repayment; the timeline changes with revenue |
| Speed | Same-day decisions common on complete files; never promised |
| Documents | 3 to 4 months of bank statements, ID, voided check, short application |
| Best for | Seasonal or variable revenue, growth spending with a clear return |
| Avoid if | Margins are thin and a revenue share would leave too little to operate |
Before you apply: checklist
- Calculate your average and lowest monthly revenue over the last year
- Ask what percentage of revenue goes to repayment
- Ask for the total repayment amount in writing
- Confirm how revenue is measured: bank deposits, card sales or invoices
- Check what happens if revenue drops sharply
- List any advances or loans already open
- Gather 3 to 4 months of business bank statements
Check what your business qualifies for
Merchant Fund Express reviews revenue-based financing requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressHow revenue-based financing works
You receive a lump sum. In return, a set remittance percentage of your revenue goes to the funder until a fixed total repayment is paid. If sales jump, you pay faster. If sales dip, payments shrink and the timeline stretches.
The total is usually set like a factor rate: amount funded times a multiple. That means paying faster does not reduce the total unless the contract says so. Our revenue-based financing guide covers the basics in more depth.
RBF vs a loan vs an MCA
| Feature | Revenue-based financing | Term loan | MCA |
|---|---|---|---|
| Payment | Share of revenue | Fixed | Fixed debit or card holdback |
| Cost | Fixed total | Interest on balance | Factor rate |
| Debt on books | Often structured outside traditional debt | Yes | Often structured as a receivables purchase |
| Credit weight | Lower | Higher | Lower |
In practice, RBF and MCAs overlap, and some products blend the two. See revenue-based financing vs MCA for the details. Talk to your accountant about how any product should appear on your books.
Who it fits, including government contractors
- Seasonal businesses like landscaping or tourism, where a fixed payment would hurt in the off season.
- Growing businesses spending on marketing or inventory that should raise revenue.
- Government contractors paid on invoices. Revenue arrives in lumps when agencies pay. RBF can work if deposits are steady over a few months; if your cash is tied up in specific unpaid invoices, also compare the invoice factoring cheat sheet.
It fits less well when margins are thin, because a revenue share comes off the top before costs.
Funding brings customers. Is your website ready for them?
Funding usually pays for growth: more stock, staff, equipment or marketing. Make sure the customers that growth brings find a website that explains what you do and makes it easy to call, book or buy. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month.
Illustrative example: payments in a strong and slow month
| Item | Amount |
|---|---|
| Amount funded | $50,000 |
| Multiple | 1.30 |
| Total repayment ($50,000 x 1.30) | $65,000 |
| Remittance rate | 8% of monthly revenue |
| Payment in a $60,000 month | $4,800 |
| Payment in a $45,000 month | $3,600 |
| Months to repay at a steady $60,000 ($65,000 / $4,800) | About 13.5 |
Assumptions: revenue measured on total monthly deposits, no fees. In the slow month the payment drops by $1,200, which is the main benefit.
These figures are illustrations, not offers. Real pricing and terms depend on your file.
Common mistakes:
- Assuming a lower payment in slow months means a lower total cost.
- Not asking how revenue is measured.
- Stacking RBF on top of an existing advance.
How Merchant Fund Express handles this
Merchant Fund Express reviews revenue-based funding from $5,000 to $5,000,000, focusing on deposit history, consistency and existing positions. Credit scores from 500 are considered. Visit the MFE revenue-based financing page and apply with Merchant Fund Express when your statements are ready. English and Spanish service is available.
Related
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 16, 2026.