# Revenue-based financing cheat sheet: payments that move with your sales

URL: https://cheapcheapwebsites.com/cheat-sheets/revenue-based-financing/
Updated October 16, 2026. Funding offered by Merchant Fund Express (https://merchantfundexpress.com/revenue-based-financing/); Cheap Cheap Websites builds websites and does not lend.

## The short answer
Revenue-based financing gives you capital now in exchange for a share of future revenue until a set total is repaid. Payments rise in strong months and fall in slow ones, which is the main difference from a fixed loan payment. It fits businesses with real, recurring revenue that varies by season. Compare the total repayment amount and the remittance percentage before you sign.

## 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

## How 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.

## Illustrative example: payments in a strong and slow month
Illustrative example 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.

## Frequently asked questions
**Is revenue-based financing the same as an MCA?** They are close cousins. Both use a fixed total and repay from revenue. RBF usually ties payments to a percentage of revenue, while many MCAs use fixed daily or weekly debits. Read each contract to see how payments are set.

**Is revenue-based financing considered debt?** It depends on how the contract is structured, and treatment can differ for accounting and legal purposes. Ask your accountant how to record it. Either way, it is an obligation you must plan for.

**Can I get revenue-based financing same day?** Same-day decisions are common on complete files, and funding often follows the next business day. It is never promised. Having statements, ID and a voided check ready is the biggest speed factor.

**Does it work for government contractors?** It can, if deposits are steady over several months. Contractors waiting on large unpaid invoices should also look at invoice factoring, which advances against those specific invoices instead of future revenue.

Apply with Merchant Fund Express: https://merchantfundexpress.com/current-application.html?utm_source=cheat-sheet&utm_campaign=revenue-based-financing