Key Takeaways
- Revenue-based funding repays as a percentage of gross monthly revenue, not a fixed installment
- Payments automatically adjust with your revenue — ideal for seasonal or variable businesses
- No equity given up — you retain 100% ownership of your business
- Bankable funds up to $5M in tranches calibrated to your growth milestones
- No green card required — E-2 holders qualify on US business revenue alone
What Is Revenue-Based Funding?
Revenue-based funding (RBF) is a capital model where repayment is structured as a fixed percentage of your monthly gross revenue — rather than a fixed dollar amount on a fixed schedule. If your business earns $80,000 in January and $120,000 in March, your payment in January will be lower than your payment in March. The percentage stays constant; the dollar amount flexes with your performance.
This is fundamentally different from a traditional term loan, where you pay the same $4,200 every month regardless of whether your restaurant had a record December or a slow January. RBF aligns repayment with business performance, which is a structurally fairer arrangement for businesses with natural revenue variation.
How the Math Works
Here is a simplified illustration of how Bankable's revenue-based structure works:
- Your business generates $50,000/month in average gross revenue
- Bankable approves a $200,000 first tranche
- The agreed revenue share rate is, for example, 8% of monthly gross revenue
- In a typical month: $50,000 × 8% = $4,000 monthly payment
- In a strong month ($70,000 revenue): $70,000 × 8% = $5,600 payment
- In a slow month ($35,000 revenue): $35,000 × 8% = $2,800 payment
The total amount repaid over the life of the funding is determined by a factor (the total repayment cap), not by an interest rate. The timeline for reaching that cap depends on how quickly your revenue grows. Faster revenue growth means faster repayment — and the ability to access your next tranche sooner.
Why This Model Fits E-2 Businesses
The E-2 visa requires that your business be non-marginal — generating sufficient revenue and income to support more than just your own family. This requirement means that E-2 businesses that are visa-compliant are, by definition, businesses generating real revenue. Revenue-based funding underwritten on that revenue is structurally aligned with your visa compliance.
Additionally, many E-2 businesses operate in industries with genuine revenue seasonality — restaurants, hospitality, retail, landscaping, tourism-adjacent services. A fixed monthly loan payment during your off-season is a cash flow crisis waiting to happen. Revenue-based repayment eliminates that structural mismatch.
Tranche Structure: Why It Matters
Bankable deploys capital in tranches rather than as a single lump sum. A tranche is simply a portion of your approved total funding. Here is how this benefits you:
Alignment with growth: You draw capital as your business reaches milestones — opening a second location, hiring additional staff, purchasing equipment — rather than taking on the full debt service burden from Day 1 of funding.
Lower early repayment: If your first tranche is $150,000 of an approved $500,000 total, your repayment percentage applies only to the deployed $150,000. You are not paying carrying costs on capital you have not yet used.
Faster subsequent tranches: Once your first tranche repayment is substantially complete and your revenue has grown, accessing your next tranche is a streamlined process. Bankable already knows your business — additional underwriting is minimal.
Revenue-Based Funding vs. Traditional Loans
| Feature | Traditional Term Loan | Bankable Revenue-Based |
|---|---|---|
| Repayment structure | Fixed monthly installment | % of monthly gross revenue |
| Slow month payment | Same as every other month | Automatically lower |
| Strong month payment | Same as every other month | Automatically higher |
| Collateral required | Often yes (property, equipment) | No (for working capital) |
| Green card required | Often yes | No |
| SBA eligibility (2026) | E-2 holders banned | E-2 holders eligible |
| Decision speed | 30-90 days | 48 hours |
| Equity given up | None | None |
Revenue-Based Funding vs. Equity Investment
Revenue-based funding is entirely debt-like — you do not give up any ownership stake in your business. This is a critical distinction from raising equity capital from investors, where you might receive capital in exchange for a percentage of your company.
For E-2 investors, maintaining ownership concentration is particularly important. Your visa requires you to be actively directing and developing the business. Taking on equity investors who may want to influence business decisions creates complications both operationally and for your visa compliance. Bankable's model preserves your full ownership and control.
What Bankable's Revenue Share Rate Looks Like
Bankable's revenue share rates are determined by your business profile, revenue consistency, and tranche size. Rates vary by client and are disclosed transparently in your term sheet before you sign anything. Our team will walk you through the specific numbers and how they translate into projected monthly payments based on your actual revenue history.
There are no hidden fees, prepayment penalties, or variable rate adjustments after signing. The rate you agree to is the rate that applies for the life of that tranche.
Frequently Asked Questions
Revenue-based funding repays as a percentage of your monthly gross revenue rather than a fixed installment. If you earn more, you pay more. If revenue dips, your payment automatically decreases. The percentage is fixed; the dollar amount flexes with your business performance.
Not exactly. Traditional loans have fixed monthly payments and interest rates. Revenue-based funding has variable monthly payments tied to revenue performance and a total repayment cap (factor) rather than an interest rate.
No. Revenue-based funding does not involve any equity exchange. You retain 100% ownership of your business throughout the funding relationship.
Because it aligns with the E-2 visa reality: your business generates real revenue (a visa requirement), and repayment is based on that revenue. It is also available without a green card, unlike SBA loans and most traditional bank products.
A tranche is a portion of your total approved funding. Bankable deploys capital in tranches calibrated to your growth milestones so you draw capital as you need it rather than carrying debt service on unused funds.
Revenue share rates are determined by your business profile, revenue consistency, and tranche size. Your specific rate is disclosed in your term sheet before signing. There are no hidden adjustments or variable rate changes.
Gross revenue is your total business revenue before expenses — what appears as income on your bank statements. Bankable uses bank statement inflows as the primary reference for monthly payment calculations.
Yes. There are no prepayment penalties with Bankable. If your business performs strongly and you reach the total repayment cap faster than projected, the funding relationship closes at that point.
Bankable funds E-2 businesses from $50,000 to $5,000,000 in revenue-based tranches. The amount is calibrated to your verified revenue, not your immigration status.
It is especially well-suited for seasonal businesses. During slow seasons, your payment automatically decreases with revenue. This eliminates the cash flow stress of a fixed loan payment during your off-season.