Revenue-Based Financing
Revenue-based financing provides capital repaid as a fixed percentage of your ongoing revenue. When sales run hot, you pay down faster; when they slow, remittances shrink with them. It suits businesses with strong, visible revenue that want flexibility without giving up equity.
Best uses
- Inventory ahead of proven demand
- Marketing spend with measured returns
- Bridging predictable seasonal swings
- Growth investments tied directly to revenue
Typical borrower profile
- Businesses with consistent monthly revenue
- E-commerce and subscription companies
- Owners who value payment flexibility over lowest cost
Potential qualification factors
Every lender sets its own criteria, and no factor guarantees or blocks approval on its own. Commonly reviewed items include:
- Monthly revenue history and consistency
- Bank and processing statements
- Time in business
- Margins that can absorb the remittance
Documentation to have ready
- Government-issued ID
- 3 to 6 months of business bank statements
- Basic business information (entity, EIN, time in business)
- Voided business check for funding
Benefits
- Payments flex with revenue
- No equity dilution
- Faster process than many bank products
Common challenges to plan for
- Total cost can exceed traditional loans
- A revenue percentage comes off the top continuously
- Best reserved for uses with clear returns
Frequently asked questions
How is this different from a merchant cash advance?
They are related. Revenue-based financing typically remits a set percentage of total revenue on a schedule, while MCAs often draw from daily card sales. Structures and pricing vary, so compare the total payback.
What percentage of revenue goes to payments?
It varies by provider and deal size. Your advisor will model the remittance against your margins before you commit.
Is there a fixed payoff date?
Usually a target window rather than a hard date, since timing depends on your revenue pace.
Who is this wrong for?
Thin-margin businesses. If a revenue percentage would squeeze your operating margin, a fixed-payment product is likely a better fit.
How funding works with Bluejacket
Submit Your Request
Two minutes online with basic details about your goal.
Speak With a Funding Advisor
We review your situation and gather what lenders need.
Review Your Options
Compare structures side by side and pick what fits.
Receive Funding
Complete the lender's process and put capital to work.
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Submit a short request and a funding advisor will follow up with options matched to your situation.