What is Revenue Based Financing and How Does It Work?

If you’re an entrepreneur or small business owner, you know that funding is the lifeblood of growth. Traditional loans can sometimes feel rigid or out of reach — especially if your business doesn’t fit the mold banks prefer.

That’s where Revenue Based Financing (RBF) comes into play.

At Capital Express LLC, we specialize in helping businesses secure flexible, founder-friendly funding options like RBF. In this guide, we’ll break down what Revenue Based Financing is, how it works, and whether it could be your perfect next step.

What is Revenue Based Financing?

Revenue Based Financing is an alternative funding model designed for growing businesses that want flexibility. Instead of fixed monthly payments, you repay a percentage of your business’s revenue until the total repayment amount is met.

It’s simple:
You borrow a lump sum. You repay it as a share of your revenue. The more you earn, the faster you repay.

Unlike traditional loans, RBF doesn’t require equity sacrifice or strict collateral.

How Does Revenue Based Financing Work?

Let’s simplify it into steps:

Revenue-Linked Repayment:
Instead of a fixed monthly installment, you pay a pre-agreed percentage of monthly revenue until you’ve repaid the initial amount plus a fee.

Application & Revenue Review:
Your business applies for funding based on historical and projected revenue — not credit score or collateral.

Funding Approval:
Once approved, a lump sum is deposited into your business account.

Example:

You receive $100,000 in Revenue Based Financing.
Repayment rate: 6% of monthly revenue.
Target repayment amount: $130,000 (Original loan + flat fee).

If your revenue is $50,000 in a month:
You repay $3,000 (6%) that month.

If your revenue drops to $30,000:
You repay $1,800 (6%) — giving your business breathing room.

Who is Revenue Based Financing For?

Revenue Based Financing is ideal for businesses that:

• • Have steady or growing recurring revenue.

• • Want flexible repayment terms based on performance.

• • Prefer to avoid giving up equity or collateral.

Businesses across industries like SaaS, eCommerce, DTC brands, marketing agencies, and subscription models often choose RBF.

The Capital Express LLC Advantage

At Capital Express LLC, we connect businesses with reliable Revenue Based Financing providers that understand your goals and offer:

• • Fast Approvals — Get funded in days, not weeks.

• • No Equity Loss — Keep full control of your company.

• • Payment Flexibility — Pay less during slow months, more during strong ones.

Why Choose Revenue Based Financing Over Traditional Loans?

Pros of Revenue Based Financing

1. 1. No Personal Guarantee Required

1. 1. No Equity Dilution

1. 1. Aligned with Business Growth

1. 1. Quicker Than Bank Loans

1. 1. More Predictable Cash Flow Management

Cons of Revenue Based Financing

Total Repayment Can Be Higher
You often repay 1.2x–1.6x the original loan.

Revenue Dependency
Lower sales = slower repayment.

Common Questions About Revenue Based Financing

Q: Is RBF a loan?
A: Technically, it’s not a loan. It’s a financing agreement where repayments are made based on revenue performance.

Q: Is my credit score important?
A: Not as much as your revenue history. Capital Express LLC partners with lenders that prioritize business performance over personal credit.

Q: Is RBF only for SaaS or tech businesses?
A: No! It’s great for eCommerce, service providers, agencies, and subscription businesses too.

How to Apply for Revenue Based Financing with Capital Express LLC

Schedule a Consultation
Our experts assess your funding needs and business model.

Submit Revenue Details
We match you with funding partners based on your current and projected revenue.

Get Approved & Funded
Once approved, you’ll receive your funds in days — not weeks.

Is Revenue Based Financing Right for You?

If your business is growing, has a steady revenue stream, and you want to avoid debt or equity loss, RBF might be your smartest path forward.

At Capital Express LLC, our mission is to empower small businesses to scale with smart, non-restrictive funding. Contact us today for a personalized funding consultation. Let us help you turn your recurring revenue into growth capital — without sacrificing equity or flexibility.