Key Takeaways
- Revenue-based funding is repaid as a percentage of daily deposits — not fixed monthly payments
- When your revenue is lower (slow season), payments are lower. When revenue is higher, payments are higher.
- No green card, no SBA eligibility, no citizenship — revenue is the only requirement
- Best for service businesses, restaurants, retail, and eCommerce with daily revenue
- More flexible than term loans — payment amounts naturally align with cash flow
What Is Revenue-Based Funding?
Revenue-based funding (RBF) is a financing product where you receive a lump-sum advance and repay it as a fixed percentage of your daily business revenue — not as fixed monthly payments. Instead of owing $3,000 every month regardless of how your business is performing, you repay, say, 12% of whatever your business deposits each day. On a $1,000 day, you repay $120. On a $3,000 day, you repay $360.
This structure is particularly valuable for businesses with variable or seasonal revenue — which describes virtually every H-2B-background business. Landscaping companies that deposit $0 in January and $60,000 in June. Restaurants that are slow on Tuesdays and packed on Fridays. Cleaning services that dip in December and surge in spring. Revenue-based repayment naturally adapts to these patterns in a way that fixed payments cannot.
How Revenue-Based Funding Works: A Real Example
A cleaning service owned by a former H-2B worker generates $45,000 per month in revenue ($540K annually). They apply at Bankable and receive a $75,000 advance. Repayment is set at 12% of daily deposits. Here's how a typical week looks:
| Day | Daily Deposits | Repayment (12%) |
|---|---|---|
| Monday | $1,800 | $216 |
| Tuesday | $2,400 | $288 |
| Wednesday | $1,200 | $144 |
| Thursday | $3,600 | $432 |
| Friday | $2,100 | $252 |
| Weekend | $0 | $0 |
| Week Total | $11,100 | $1,332 |
At this pace, the $75,000 advance is fully repaid in approximately 56 weeks. Total repayment: approximately $97,500 (including the factor cost). The business owner gains $75,000 of growth capital, repaid flexibly from revenue that the capital itself helped generate.
Revenue-Based Funding vs. Alternatives
| Feature | Revenue-Based Funding | Term Loan | SBA 7(a) |
|---|---|---|---|
| Green Card Required | No | Often yes | Citizenship required |
| Fixed Payments | No — % of revenue | Yes — monthly | Yes — monthly |
| Decision Speed | 48 hours | 2–8 weeks | 30–90 days |
| Seasonal Flexibility | Yes | No | No |
| Rate vs. SBA | Higher | Higher | Lowest |
Apply for Revenue-Based Funding
5-minute application. 48-hour decision. No green card. Up to $5M.
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See how revenue-based funding compares to other H-2B business funding options.
Learn More →Frequently Asked Questions
Revenue-based funding is a lump-sum advance repaid as a fixed percentage of your daily business bank deposits. When your revenue is higher, repayment is faster. When revenue is lower, repayment slows. It naturally adapts to your business's cash flow.
A bank loan has fixed monthly payments regardless of your revenue. Revenue-based funding repays as a percentage of daily deposits — if you have a slow month, payments are lower. Revenue-based funding also does not require a green card or citizenship.
The repayment percentage — called the 'holdback rate' — is typically 8–15% of daily deposits. The exact rate depends on your funding amount, revenue level, and term.
Repayment duration depends on your revenue. A $100K advance for a business depositing $50K per month might be repaid in 8–14 months at typical holdback rates.
Revenue-based funding and merchant cash advances (MCAs) are similar structures. Bankable's revenue-based products are designed to be more transparent and better-priced than typical MCAs, with clearer terms and lower effective rates.
No. Revenue-based repayment works from your business bank account — it captures all deposits, not just credit card transactions. This is important for landscaping, cleaning, and other businesses that receive a mix of cash, check, and electronic payments.
The advance is what you receive. Total repayment is the advance plus the factor cost (effectively the interest). A $100K advance might have a total repayment of $130K–$150K depending on the factor rate and term.
Yes. Early repayment of revenue-based funding is possible. Ask about early repayment terms when reviewing your offer — some products have reduced costs for early repayment.