Revenue-Based Financing — Repay as a % of Sales

Revenue-based financing (RBF) provides a lump sum of capital that you repay as a fixed percentage of your daily or weekly revenue. When sales are strong, you pay more and retire the balance faster. During slow periods, your payment automatically decreases. There is no fixed monthly payment, making RBF ideal for businesses with seasonal or fluctuating revenue like restaurants, retail, and e-commerce.

Most revenue-based financing programs withhold between 5% and 25% of daily revenue until the total repayment amount is met. The exact percentage depends on your funding amount, revenue volume, and business profile. SMB Capital Funding structures each deal individually to ensure the repayment rate does not strain your operating cash flow.

It depends on your business model. RBF is better for businesses with variable revenue because payments flex with your income — you never face a fixed payment you cannot afford during a slow month. Traditional loans offer lower total cost for businesses with stable, predictable revenue. SMB Capital Funding offers both and can help you choose the right product for your situation.

All industries with consistent card or deposit-based revenue qualify. The most common include restaurants, retail stores, medical and dental practices, salons, auto repair shops, e-commerce businesses, trucking, and construction. If your business generates at least $10K per month in revenue and has been operating for 6+ months, you likely qualify.