What is Revenue Based Financing?
Revenue Based Financing (RBF) gives businesses fast access to working capital based on future credit card or other receivables so they can meet their business needs. This type of funding is an alternative form of financing that works by giving businesses upfront access to a lump sum in return for a portion of the future revenue receivables at a discounted price. This allows the payment timeline to be tailored to the flow of business sales.
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To be approved for an RBF, certain criteria must be met. Important qualifying factors are that the business must accept credit card payments or have other receivables.
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At Block Equity, applying for an RBFis fast and convenient. You can complete the application for your business through our online portal in just a few minutes. Our merchant cash advance amounts start at $5,000 and range up to $5,000,000.
Which Business Is Ideal for This Type of Small Business Financing?
Flexible Payments
Automatic payments are calculated based on a percentage of the business’ credit card sales or other revenue receivables
Estimated Completion Date**
Payments are based on the business’ receivables so there is no fixed payment term
Cost and Fees
The receivables are purchased at a discounted price; fees may be charged and deducted from the advance amount
Businesses that accept credit card payments and need fast access to capital funds are ideal candidates. Aside from having a simpler application process, cash advances are designed to help businesses get flexible access to the working capital they need quickly. The reason RBF provides flexibility is that it has variable payments based on future revenue receivables.
If your business has high credit card sales, lots of receivables, or is seasonal, then a merchant cash advance might be ideal.
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**An estimated completion date is calculated based on the estimated time it will take the business to deliver the receivables (which will vary based on the business’ performance). These estimated completion dates typically range between 3 months up to 18 months, but this is only an estimate.
Grow Your Business Fast With Revenue Based Financing
Your business only needs 4 important things to apply.
A valid form of identification
Business bank account number and routing
Last four months of business bank statements
Last four months of credit card processing statements
Revenue Based Financing FAQs
Frequently asked questions
Revenue Based Financing with Block Equity
At Block Equity, we’re dedicated to unlocking big potential for your small business. Consider us part of your team, helping your business grow with flexible financing solutions tailored to your business’ unique needs.
Trusted by over three thousand small businesses
Innovative funding technology that allows you to apply on any mobile, tablet, or computer device
Team of actual business advisors who provide fast, simple, and trusted funding information
