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Funding option
Revenue-Based Financing
Payments that flex with your sales. Repay as a percentage of sales, so your payments flex with slow and busy months.
Written and reviewed by the BFG Funds Editorial Team · Updated October 15, 2026
- Funding amount
- $25K – $1M
- Speed to funding
- 24–48 hours
- Typical term
- Until repaid, typically 4–15 months
- Typical cost
- A fixed total payback set up front (factor rate commonly about 1.10–1.45), remitted as a percentage of sales
Overview
Is revenue-based financing the right fit?
Instead of a fixed monthly payment, you remit an agreed percentage of daily or weekly sales. Slow week, smaller payment. It is among the most forgiving structures for businesses with volatile revenue.
- Seasonal businesses with big swings
- High card-volume retail, restaurants and e-commerce
- Owners who want payments tied to actual performance
Pros
- Payments rise and fall with sales
- Flexible credit requirements
- Fast funding
Cons
- Total cost is higher than bank financing
- Early payoff may not reduce the cost
- Requires steady deposit history
How it works
From application to funded in four steps
Revenue verification
Providers review recent statements or processing history.
Set your remittance rate
Agree on the percentage of sales and the total repayment amount up front.
Get funded
Funds are often released in as little as one business day; remittance starts the following cycle.
Typical time to funding for this program: 24–48 hours.
Revenue-Based Financing FAQ
How is revenue-based financing priced?
You agree to repay a fixed total, usually expressed as a factor rate (for example 1.25 means $1.25 repaid for every $1 received). Payments are a percentage of sales, so the time to repay varies with your revenue.
What happens in a slow month?
Because payments are a share of sales, a slower month generally means a smaller payment. Check each agreement for minimums or reconciliation terms.
Is this the same as a merchant cash advance?
They are closely related. A merchant cash advance is a purchase of future receivables, often collected as a share of card or bank deposits; revenue-based financing is the broader term for payments tied to revenue.
Other funding options
Business Line of Credit
Draw only what you need, when you need it. Revolving capital that refills as you repay.
Learn moreWorking Capital
Cover payroll, inventory and seasonal gaps with fast, unsecured short-term funding.
Learn moreTerm Loan
A lump sum with fixed payments and clear terms for planned expansion or big purchases.
Learn moreTell us about your business
A few details are all we need to start. A funding specialist will look at what your business needs and come back with the options that fit — usually the same business day. There's no obligation.
- Checking your options won't affect your credit
- You talk to one specialist, not a call center
- Many decisions come within 24 to 48 hours