Key Takeaways
- Revenue-based financing (RBF) advances capital repaid as a fixed percentage of your monthly revenue
- When revenue increases, you repay faster. When revenue decreases, you pay less.
- RBF does not dilute equity and does not require immigration status beyond work authorization
- It is ideally suited to businesses with variable revenue — restaurants, retail, seasonal businesses
- Bankable's RBF is structured as a loan, not a merchant cash advance — transparent terms and no hidden fees
Revenue-based financing is the most VAWA-friendly funding structure that exists. Here is why: it requires no collateral, no personal guarantee on amounts under $150,000, no citizenship, and no immigration status beyond work authorization. The only thing it requires is documented business revenue — the one thing VAWA self-petitioners with established businesses have in abundance.
How Revenue-Based Financing Works
Step 1 — Advance: Bankable advances a lump sum to your business bank account. The advance amount is based on your monthly revenue — typically 1 to 1.5 times your average monthly gross revenue.
Step 2 — Repayment Percentage: You agree to repay a fixed percentage of your monthly revenue until the advance plus a flat fee is fully repaid. If your monthly revenue is $20,000 and the repayment percentage is 8%, you pay $1,600/month.
Step 3 — Flexible Payments: If your revenue increases to $30,000, your payment increases to $2,400. If revenue drops to $10,000, your payment decreases to $800. No fixed monthly minimum that ignores your cash flow reality.
Step 4 — Full Repayment: Once you have paid the advance plus the flat factor fee, the obligation is complete. No lingering interest that compounds indefinitely.
Example Calculation
| Factor | Example |
|---|---|
| Advance Amount | $50,000 |
| Factor Rate | 1.25 |
| Total Repayment | $62,500 |
| Monthly Revenue | $30,000 |
| Repayment % | 8% |
| Monthly Payment | $2,400 |
| Estimated Payoff | ~26 months |
Frequently Asked Questions
No. Bankable does not require a green card, US citizenship, or permanent residency. A valid Employment Authorization Document (EAD), business EIN, and 4 months of documented business revenue are the primary requirements.
Bankable issues funding decisions within 48 hours of a complete application. Funds reach your business bank account within 3 to 7 business days of approval.
No. Business financing is a lawful commercial activity. Bankable does not report to USCIS or any immigration agency. Your petition and your business financing are entirely separate matters.
Merchant cash advances (MCAs) purchase future receivables at a discount, often with very high effective APRs (40–150%). Bankable's RBF is structured as a commercial loan with a transparent factor rate and defined repayment terms. We are a lender, not a receivables purchaser. Factor rates and total repayment amounts are disclosed upfront.
Bankable's standard RBF up to $150,000 does not require real estate collateral or personal guarantee of personal assets. A general business lien is standard. Above $150,000, a personal guarantee may be required — your loan offer will specify the exact terms.
A factor rate (e.g., 1.25) is a multiplier applied to your advance amount to determine the total repayment. It is not an APR. A factor rate of 1.25 on a $50,000 advance means total repayment of $62,500. Unlike interest, the factor fee does not compound — the total amount is fixed from the beginning.
Yes. Early payoff of revenue-based financing is generally permitted without penalty. Contact Bankable for your current payoff amount. Note that some factor rate structures front-load the fee — confirm your payoff terms when reviewing your loan agreement.
We typically advance 1 to 1.5 times your average monthly gross revenue over the trailing 4–6 months. A business with $25,000/month in average revenue typically qualifies for a $25,000–$37,500 advance on a first advance. Larger amounts available as your repayment history builds.