Revenue Based Business Loans To Grow Your Small Business

Whether you own a small or medium size business with high
volume sales, we’ll find funding programs designed to suit you!


Unsecured Funds

No personal guarantee*

We Fund Quickly

Funded within a few days

Simple & Easy

Past credit issues may be OK

Fast Approvals

Within 24 hours of application


Revenue based business loans are based on the amount of total monthly sales you make. In some cases this program will help more than a merchant cash advance on credit card sales.



$10,000 to $5 million


Starting at 9%


3 months – 10 years


1-3 Business days

Intro To Revenue Based Business Loans

One of the most significant flaws of traditional business loans is the repayment structure. You have to make fixed payments every month, even though every business goes through ups and downs. Many companies cannot qualify for traditional products for this exact reason. Consistent revenue isn’t a possibility when your industry comes with busy and slow seasons. If this sounds like your business, Revenue Based Business Loans may be the right business financing product for your needs.

This unique product is very similar to a Merchant Cash Advance, but it’s not just for businesses with high volumes of debit and credit card sales. You can also access higher borrowing amounts and longer terms. Revenue Based Business Loans are easy to qualify for and, depending on your sales volume, even easier to pay back.

In this guide, we’ll answer the following questions:

Ready to take the next step and apply for
a Revenue Based Business Loan?

What Are Revenue Based Business Loans?

Revenue Based Business Loans are sometimes referred to as a “business cash advance” or “revenue-based financing.” You receive a lump sum that is based on your monthly revenue. But instead of fixed monthly payments, you can make daily, weekly, or monthly payments. Like a Merchant Cash Advance, your payments fluctuate with sales volume. But while payments for a Merchant Cash Advance come from debit and credit card sales, the payments for a Revenue Based Business Loan come from your total sales.

Funding Amount

$10K – $5M

Funding Term

3 months – 10 years

Interest Rates

Starting at 9%


1-3 Business days

How Do Revenue Based Business Loans Work?

Your borrowing amount is based on total monthly revenue. This might allow you to access more significant funding amounts than a Merchant Cash Advance, where your advance amount is only based on revenue from debit and credit card sales.

Depending on your cash flow, you will be assigned to make daily, weekly, or monthly payments. The business lender will then deduct a percentage of your revenue, based on your assigned repayment frequency. This percentage, which usually falls below 10%, is known as a “capture rate.” When you have a high revenue day/week/month, you pay more, and vice versa.

Though payments fluctuate with sales, you do have to pay back your total amount within a given time frame.

Recent Reports About Revenue Based Loans

When it comes to revenue based financing and loans, more and more small business owners turn to online lenders. In fact, Morgan Stanley forecasts that by the end of 2020, online lenders or fintechs will reach $47 billion in lending. That’s 16 percent of total U.S. small and medium enterprise approvals.

In a recent Forbes article, small business advisory firm Next Street says right now there is an $87 billion shortfall in available financing for small businesses. Online lenders offering a variety of alternative financing options, including revenue based loans are jumping in to fill in that gap for borrowers.

What Are The Advantages of Revenue Based Business Loans?

Revenue Based Business Loans allow businesses to put their recent growth to good use. If your revenue has improved dramatically over the past three months, you will most likely be able to access a large borrowing amount. Traditionally important factors like credit score or annual revenue will have little (if any) impact on the size of your loan. With other products, it’s challenging to access more significant amounts with poor credit or no collateral.

Perhaps the most significant advantage is the repayment structure. You don’t have to worry about making fixed payments during an unexpectedly slow day, week, or month. Instead, you only pay what you can afford at the time. This is particularly ideal for seasonal businesses. The total cost of the loan decreases when your payments are more spread out. You could use the funds during the slow season without having to pay off the brunt of the debt until the busy season when sales pick up.

Also, unlike a Merchant Cash Advance, Revenue Based Business loans are not exclusively available to businesses that perform high volumes of debit and credit card sales. It doesn’t matter which payment method your customers prefer, as long as you have high monthly revenue.

Revenue Based Business Loans tend to carry longer terms than Merchant Cash Advances, too. This is because while the latter requires daily payments, the former can be paid back monthly, weekly, or daily.

What Are The Disadvantages of Revenue Based Business Loans?

Revenue Based Business Loans are often pursued by businesses that cannot qualify for other options. These business owners likely have poor credit, which makes it nearly impossible to obtain business term loans or business lines of credit. In the eyes of business lenders, poor credit increases the likelihood that you won’t be able to pay off the loan on time.

To offset this risk, products like Revenue Based Business Loans and Merchant Cash Advances are given high rates and fees. Revenue Based Business Loans are usually even more expensive than Merchant Cash Advances because of the higher borrowing amounts and longer terms. Throughout your term, you’ll likely accumulate a significant amount of interest.


  • Get access to funds quickly
  • Approval process is easy
  • Don’t need perfect credit
  • Use it for anything
  • May not need a personal guarantee


  • Higher rates & fees than with traditional loans
  • Might require collateral
  • Gets more expensive with lower credit

Revenue Based Business Loans Compared To Other Products

Merchant Cash Advance$7.5k – $1mStarting at 1.091-2 business days
SBA Loan$50k-$10mStarting at 5%3-5 weeks
Business Term Loan$10k to $5mStarting at 5%1-3 business days
Business Line of Credit$10k to $250kStarting at 8%1-3 business days
Receivables/Invoice Factoring$50k-$10mStarting at 5.8%1-2 weeks
Equipment FinancingUp to $5m per pieceStarting at 5%3-10 business days
Revenue Based Business Loans$10K – $5mStarting at 9%1-3 business days

Who Qualifies For Revenue Based Business Loans?

Approved businesses generally met the following criteria:

Annual Revenue


Credit Score


Time in Business

4 months+

How To Apply For Revenue Based Business Loans:

If you have the required information on-hand, the entire application takes just a few minutes. Funds can appear in your bank account in 1-2 business days. Here’s how to get started:

Step 1: Consider Your Needs

Before you begin the application process, take some time to make sure this is indeed the right product for your individual needs. Will you be able to use the funds for your desired purpose? Is the repayment structure conducive to your cash flow? Do you know exactly how much funding to request? Answering these questions ahead of time will make the rest of this process much, much smoother.

Step 2: Gather Your Documents

The application requires the following documents and information:

  • Driver’s license
  • Voided business check
  • Bank statements from the past three months

Step 3: Fill Out Application

You can begin the application process by calling us or filling out our one-page online application. Either way, you’ll be asked to supply the information from the previous section along with your desired funding amount.

Step 4: Speak to a Representative

Once you apply, a representative will reach out to you to explain the repayment structure, rates, and terms you qualify for. This will ensure that there are no surprises or hidden fees during repayment.

Step 5: Receive Approval

If and when you’ve been approved, funds should then appear in your bank account in 1-2 business days.


Your Revenue Business Loan Gets Set Up – Now What?

Your business loan isn’t just a way to get financing for your business. It’s also an excellent opportunity to start building (or improving) your credit.

Regardless of the type of business loan you get, make all of your required payments on time and in full. If you get a business credit line or another form of revolving credit, keep your balance below the credit limit.

Consistently making your business financing payments on time and in full will have a positive impact on your credit. And that means preferred rates and terms when you next need business financing.

What If I’m Declined For Revenue Based Business Loans?

If your application is declined, it’s possible you applied at the wrong time with regard to your cash flow. Remember, this product places significant emphasis on monthly revenue. Hence, you need to show strong sales for the past three months to earn approval. In some cases, you may need to provide statements to confirm that your scheduled payback months also did well in the previous year.

And though Revenue Based Business Loans cater to borrowers with poor credit, the reason for the credit issues is relevant as well. To clarify, while bad credit can be due to circumstances beyond your control, others have so much debt that they cannot afford to take on any more. We may conclude that taking on more debt would do more harm than good for your business.

In this case, we might recommend a different, more affordable business financing tool. Possible examples include business credit cards or even personal loans. These alternatives are usually easier to qualify for than business loans. At AmCap Financial, we can help you explore your options and point you in the direction of the most sensible choices.

Ready to take the next step and apply for
a Revenue Based Business Loan?

People Also Ask:

Are Revenue Based Business Loans Better Than Equity Financing?

Revenue Based Business Loans bears numerous similarities to equity financing. Both options technically involve selling a portion of your revenue. The difference is that with debt financing, you have to pay interest and fees, but you maintain complete control of the business. With equity financing, on the other hand, you don’t have to pay interest or fees, but you do have to sacrifice a percentage of ownership.

In general, debt financing is typically favored by businesses that are willing to pay interest and fees in exchange for maintaining control of the company.

How Much Will My Payments Be For Revenue Based Business Loans?

Your payments will be a percentage of your daily, weekly, or monthly revenue. This percentage is determined through a series of factors, like credit score, cash flow, and your ability to provide collateral. Similar criteria are used to determine your repayment frequency.

Let’s say your business lender allows you to make monthly payments at 10%. If you made $20,000 in revenue for one month, your payment would be $2,000. But maybe business slows down the following month, and you only earn $10,000 in sales. In this case, you would only have to pay $1,000.

How Can I Use The Funds From Revenue Based Business Loans?

Technically, you can use the funds in any way you like. Your intended purpose of the funds will likely have zero impact on your application. However, specific initiatives will more effectively capitalize on the advantages of the repayment and fee structure. Earlier, we noted that the total cost of the loan decreases when your payments are more spread out. Thus, you could use the funds during a slow period to prepare for a busy period in the coming months. You’d make smaller payments when business is slow and more substantial payments when sales pick back up.

The more time between your slow and busy seasons, the less you’d pay for the loan. You’d pay more if you tried paying it off as soon as possible.

Why Haven’t I Heard of Revenue Based Business Loans?

Compared to other business financing products, Revenue Based Business Loans are relatively new. It’s one of the few products that doesn’t prioritize credit score, and the repayment structure is unique. But more and more business lenders have realized that credit score is not always the most accurate indicator of someone’s ability to repay. Many business owners also have poor credit due to circumstances beyond their control. Unfortunately, much of the business financing industry is still figuring that out.

In summary, you probably haven’t heard of this product because only some business lenders are shaping their offerings to suit borrowers with poor credit.

How Much Does My Credit Score Matter?

Not much. Low credit scores do not significantly harm your chances of getting approved for a revenue based business loan. At AmCap Financial, we’re more concerned about how much revenue your business makes and how much your financing will help you keep building that revenue.

How Long Will It Take To Pay Off My Revenue Based Business Loan?

The amount of time it takes to pay off your loan depends on how fast your revenue grows. Since the more significant the revenue, the bigger the payment, and the quicker your loan gets paid off. However, smaller revenue months mean lower payments too, and a longer time to pay off the loan.

If you’re hoping to pay your loan off faster, work on boosting your revenue.

Why Should I Consider Revenue-Based Financing Over a Traditional Business Loan?

Getting a traditional business loan can take days or even weeks and require one or more in-person meetings. They can require additional business documentation and paperwork. And conventional business loans tend to focus on a business’s credit history and credit score.

You should consider a revenue-based business loan if you’re looking for fast access to funds for your quickly growing business. Maybe you have had credit challenges in the past. Yet now you need money for your business. If you can provide bank statements to verify your consistently growing revenues, a revenue based business loan could be just what you need.

Can I Get a Revenue-Based Business Loan with Bad Credit?

Yes, this product is available to borrowers with bad credit. This is because accessibility is based almost entirely on monthly revenue. As long as you have strong monthly revenue, poor credit probably won’t prevent you from being approved. Revenue-Based Business Loans tend to have high rates for this exact reason. If you have good or excellent credit, you’ll be able to access lower rates, longer terms, and a more convenient repayment structure by applying for another product, like a Business Term Loan.

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a Revenue Based Business Loan?

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Over $900 million matched to US Businesses