Revenue-Based Financing

Revenue-based financing gives your business a lump sum that you repay as a set share of monthly revenue until a fixed total is paid. When revenue is up you pay more, when it's down you pay less, and the total stays the same.

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Who it fits

It fits businesses with steady, recurring revenue that shows up month after month: subscription and software companies, online stores, service businesses with repeat clients. Funders want a track record of revenue, healthy margins and a plan for the money that grows sales.

Revenue has held steady or grown for several months.
Your sales run through a processor, a store platform or accounting software a funder can read.
The money goes to something that grows revenue: stock, marketing, hiring.
You'd rather not give up equity or sign up for a fixed monthly payment.

It's a harder fit when revenue swings a lot, or when most sales come in as cash that never touches a processor. A merchant cash advance read from your bank statements usually suits those businesses better.

Revenue-based financing vs a merchant cash advance

Revenue-based financing and an MCA side by side
	Revenue-based financing	Merchant cash advance
How you repay	A share of monthly revenue	A holdback of card sales, or a set daily or weekly debit
How the cost is set	A fixed fee, often shown as a multiple of the amount	A factor rate times the amount
How often payments run	Usually monthly	Usually daily or weekly
What funders read	Revenue data from your accounts, processor or platform	Business bank statements
Who it's built for	Recurring or online revenue	Steady deposits of any kind

The two are close cousins. Both are paid back from sales, and neither carries an interest rate in the usual sense. The full comparison is in our guide, MCA vs revenue-based financing.

How it works with Afterfirst

We're a nationwide broker headquartered in Los Angeles. Funders make the offers; we find the ones that fit your file and walk you through each one.

Tell us your monthly revenue, where it comes from and what the money is for.
We call you back, usually the same business day, and tell you whether revenue-based financing or an advance fits your numbers better.
We send your file only to funders that do revenue-based financing for businesses like yours. Nobody else sees it.
Offers come back side by side: the amount, the total repayment, the revenue share and any fees.
You choose one, or you pass. Nothing happens until you pick.

What it costs, in plain words

The funder sets the total repayment up front, often written as a multiple of the amount you receive, sometimes called a cap. You repay that total and not a dollar more, no matter how long it takes. Each month, the agreed share of revenue goes to the funder until the cap is reached.

Faster growth pays it off sooner. The total doesn't change, so a quick payoff means you paid the same fee over less time. Ask whether there's an origination fee on top of the cap, whether the revenue share ever changes, and what happens in a month with no revenue.

Applying is free, and you never pay Afterfirst a fee. The funder pays our commission only if a deal funds, and the amount is in the offer paperwork before you sign.

Documents you'll need

Business bank statements for the last few full months, plus this month so far.
Access to your revenue data: a report from your processor, store platform or accounting software.
A recent profit and loss statement, if you keep one.
The funder name, balance and payment for any financing you're paying now.
Your driver's license and the business's tax ID.

The documents guide shows what funders read on each statement.

Revenue-based financing questions

What is revenue-based financing?

It's a lump sum you repay as a set share of your monthly revenue until a fixed total is paid. Good months pay it down faster, and slow months pay less. There's no equity involved and no fixed monthly payment. The total is set on the day you sign, so you know the full cost up front.

Is revenue-based financing the same as an MCA?

They're close, not the same. Both are repaid from sales. Revenue-based financing usually reads monthly revenue from your accounts and takes a monthly share. An MCA reads your bank statements and takes a daily or weekly debit, or a holdback of card sales. We'll tell you which one your numbers fit.

How do I get revenue-based financing?

Call 877-FUND-654, or send the form at afterfirstmca.com/apply. Have your monthly revenue, your statements and access to your sales data ready. A real person reads your file and calls you back, usually the same business day, then sends it only to funders that do this kind of financing for businesses like yours.

Is revenue-based financing a good idea?

It's a good idea when revenue is steady and the money goes into something that grows it, like stock or marketing that pays for itself. It's a poor idea for covering losses, because the repayment comes out of revenue you need. Compare the total repayment with what the money will earn before you sign anything.

Who pays Afterfirst?

The funder does, never you. Applying is free, and you never pay us a fee. The funder pays our commission only when your deal funds, and the amount is written into the offer paperwork before you sign. If you turn down every offer, nobody owes anybody anything.

Revenue-Based Financing by city

Each city page pairs this option with that city's Census business data, its leading industries and a worked cost example.

Revenue coming in every month?

Tell us your numbers and we'll show you what fits. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.