Revenue-Based Financing Commonly Asked Questions

Revenue-based financing (RBF) provides fast funding based on your future revenue. It can cover payroll, materials, or operating expenses, with repayments tied to your actual cash flow, making it flexible for seasonal or growing businesses. RBF is especially helpful for contractors who may not qualify for traditional bank loans but need quick, reliable capital to take on new projects.

Revenue-based financing (RBF) can provide approvals and funding within 24 hours for qualifying businesses. Decisions are based primarily on your business’s revenue and cash flow, rather than credit history, making it a fast and flexible option to access working capital quickly. RBF is ideal for small businesses that need immediate funds to cover payroll, inventory, or other operational expenses.

For very new businesses, revenue-based financing (RBF) is one of the fastest ways to access working capital. Funding decisions are based primarily on your business’s revenue and cash flow rather than your operating history, allowing approvals and cash in as little as 24–48 hours. RBF is ideal for covering payroll, inventory, and other immediate expenses while your business is still establishing its track record.

While all three provide quick access to cash, they differ in structure and repayment:

• Revenue-Based Financing (RBF): Advances capital based on your business’s revenue. Repayments fluctuate with sales, so higher revenue means faster repayment. Ideal for businesses with predictable or growing cash flow, and approvals often rely more on revenue than credit history.

• Short-Term Loan: A fixed lump sum with set repayment terms and interest. Payments are consistent regardless of revenue, making it more predictable but less flexible if cash flow dips.

• Factoring: You sell your unpaid invoices to a factoring company at a discount. The factor collects payment from your customers. This improves cash flow immediately without adding debt and is best for B2B businesses with slow-paying clients.

RBF and factoring are both flexible and tied to business performance, whereas a short-term loan is structured debt.

Revenue-Based Financing (RBF) is ideal for businesses needing fast capital. It provides a lump sum upfront in exchange for a percentage of future revenue, with repayments adjusting to your sales. Approvals and funding can often be completed within 24–48 hours, making it a flexible solution for growing businesses that need immediate cash without relying on traditional credit.

Revenue-Based Financing (RBF) is an ideal solution for seasonal businesses that need flexible working capital. With RBF, you receive a lump sum of cash upfront and repay it as a percentage of your revenue, so your payments naturally adjust with your business’s cash flow. During peak months, repayments are higher, and during slow seasons, they are lower, helping you cover payroll and other essential expenses without straining your finances. Unlike traditional loans, RBF doesn’t require fixed monthly payments, and approval is often based more on your revenue than your credit score, making it accessible even for newer or fast-growing businesses. This flexibility allows you to maintain operations smoothly year-round and focus on growth without worrying about cash flow gaps.

For businesses in niche or high-risk industries, revenue-based financing (RBF) is often the most accessible funding option. RBF provides capital based on your business’s revenue rather than credit score or time in business, making it ideal for companies that traditional lenders may consider too risky. Payments automatically adjust with your sales, so slower periods reduce repayment pressure. This flexibility allows businesses in high-risk sectors—such as emerging tech, specialty services, or seasonal markets—to manage cash flow, cover operating expenses, and invest in growth without adding debt or requiring collateral. RBF can be combined with other alternative financing, like invoice factoring, to further stabilize cash flow.

For restaurants, revenue-based financing (RBF) is an increasingly popular option for funding commercial kitchen upgrades. RBF provides a lump sum of capital repaid as a percentage of future revenue, so payments scale with your sales—higher during busy periods and lower during slow ones. This flexibility makes it ideal for restaurants with seasonal fluctuations or unpredictable cash flow. RBF can cover equipment purchases, renovations, or technology upgrades without requiring collateral or a long credit history, and funding can often be approved faster than traditional loans. It can also be paired with equipment leasing or vendor financing to stretch capital further while modernizing your kitchen efficiently.

For businesses denied a bank loan, revenue-based financing (RBF) is a strong alternative. RBF provides a lump sum of capital repaid as a percentage of future revenue, so payments scale with your cash flow and don’t rely heavily on credit history. This makes it accessible to newer businesses or those with limited credit. Funding can often be approved quickly, giving you fast access to working capital for payroll, inventory, or growth initiatives. RBF is flexible, doesn’t require collateral, and can be paired with other options like invoice financing or business lines of credit for additional support.

Businesses nationwide can access revenue-based financing (RBF).  RBF provides a lump sum of capital repaid as a fixed percentage of future revenue, offering flexibility for businesses of all sizes and industries. Because repayments adjust with cash flow, it’s ideal for companies with seasonal or variable income. CFGMS’s RBF solutions are fully compliant with disclosure and lending regulations across multiple states, ensuring transparency and adherence to all applicable laws. With fast approval, minimal credit history requirements, and no need for collateral, RBF is a reliable alternative to traditional loans or lines of credit.

For businesses dealing with recent credit issues, revenue-based financing (RBF) can be an effective solution. Unlike traditional loans, RBF focuses on your business’s ongoing revenue rather than your personal or business credit history. You receive a lump sum upfront and repay a fixed percentage of future sales, which automatically adjusts with your cash flow—helpful for businesses with fluctuating or seasonal revenue. This approach provides fast access to working capital without requiring collateral, making it ideal for businesses that need flexibility while rebuilding financial stability.

For revenue-based financing, the focus is primarily on your business’s revenue and cash flow rather than credit history or collateral. Most RBF providers aim to make the application process fast and straightforward, often funding within a few days. Commonly requested documents include:

Business and financial documents

• Recent bank statements: Usually 3–6 months to show consistent cash flow and revenue.

• Credit card or payment processing statements: Demonstrates daily sales and supports repayment calculations.

• Business tax returns or basic financial statements: May be required for larger funding amounts to confirm revenue trends.

• Legal business documents: Articles of incorporation, business license, or registration number to verify your business is legitimate.

Applicant and owner information

• Government-issued ID: For verification purposes.

• Personal details and proof of ownership: Confirms authorization to secure funding on behalf of the business.

Evaluation focus

• Revenue and sales trends: Repayment is based on a percentage of your future revenue, so consistent income is key.

• Time in business: Many RBF providers work with businesses that have been operating for just a few months.

• Credit history: While less critical than with traditional loans, a stronger credit profile can sometimes help secure better terms.

This streamlined documentation process makes RBF an accessible and flexible option for businesses needing fast capital.