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Revenue-based financing is a single funding event repaid from sales.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, we compare structures on total dollars repaid and the rhythm of payments, and we publish our own terms so you can do the same.
Revenue-based financing is a single funding event repaid from sales. A line of credit is a pool you open once and use as needed. One is a project tool; the other is a cash-flow tool.
| Revenue-based financing | Business line of credit | |
|---|---|---|
| Structure | Single funding, repaid from revenue | Revolving pool |
| Repayment | Flexes with sales | Per draw schedule |
| Cost | Fixed total | Interest on what you draw, plus 2.49% per draw |
| Reuse | Reapply or renew | Repay and draw again |
| Best for | A defined event | Recurring cash-flow needs |
A $50,000 need, illustrative arithmetic only: These are illustrative figures to show the arithmetic, not an offer; your offer shows the amount, schedule and total cost before you sign.
| Item | Figure |
|---|---|
| One draw fee | $1,245 |
| Revenue-based illustrative total at 1.30 | $65,000 |
Compare any offer on total dollars repaid and the rhythm of payments, not on a single rate. Use the factor-rate calculator and how much can I borrow to test your numbers. The minimum FICO is 500, and the better your credit, the better your offer.
Source: Merchant Fund Express. Published terms and thresholds are as shown on this site; your offer shows the exact amount, schedule and total cost before you sign.
Draws are repaid on a schedule rather than as a share of sales, so budget for the schedule. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.
Revenue-based files are read on revenue and bank activity and can start at six months in business; the line of credit strongest tier asks for 3+ years and a 650 FICO. Merchant Fund Express publishes its terms and thresholds before you apply.
Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.
