Revenue Based Financing: Fast Capital for Immediate Growth
Running a business means making decisions fast. When opportunity knocks—whether it's bulk materials at liquidation pricing, equipment available at 50% off for 48 hours, or a major project requiring immediate capital—you need funding that moves as quickly as you do.
Revenue based financing isn't survival capital. It's strategic growth capital for businesses ready to convert opportunity into immediate revenue.
Understanding Revenue Based Financing
Revenue based financing is working capital based on what your business actually does: generate revenue. Instead of waiting weeks for bank approval or getting bogged down in lengthy underwriting, we structure capital around your monthly revenue performance and deployment opportunity.
Here's what most lenders won't tell you: revenue based financing, merchant cash advances, working capital loans, and cash flow financing are fundamentally the same financing structure. Different names. Same concept. The merchant cash advance industry earned a terrible reputation—high costs, predatory terms, debt cycles. So lenders started calling it "revenue based financing" and suddenly business owners think it's different. It's not. The structure is identical.
But here's what changes everything: when structured correctly and deployed strategically, revenue based financing costs less than traditional bank financing—and moves infinitely faster.
Why Smart Business Owners Choose RBF (And Actually Pay Less)
Revenue based financing operates on factor rates, not APR. Factor rates start at 1.15—you borrow $100,000, you repay $115,000 total. But with our aggressive prepayment discounts for early repayment, your effective cost can be significantly lower.
Traditional Bank Loan: $100,000 term loan at 7% APR over 10 years = $139,000 total cost. Plus 30-60 days waiting for approval. Plus extensive documentation requirements. Plus the revenue you lose while opportunities pass you by. Plus fixed payments regardless of whether you're profitable.
Revenue Based Financing: $100,000 at 1.15 factor = $115,000 total repayment. Funded in 24-48 hours. Deploy immediately for growth opportunities, and with strategic prepayment, your effective cost can be substantially lower than traditional financing when you factor in speed and opportunity capture.
The difference isn't the product. It's deployment speed and repayment strategy. While your competitor waits 60 days for bank approval, you've captured the opportunity, generated the revenue, and paid back the financing—saving money compared to traditional financing.
How Revenue Based Financing Works for Different Industries
Construction and Specialty Contractors face unique cash flow challenges perfectly suited to revenue based financing's 6-18 month structure. When concrete companies secure commercial projects with 90-day payment terms, when excavation contractors win municipal contracts with 120-day payment cycles, when asphalt and paving companies handle large developments requiring immediate material investment—the short-term nature of RBF aligns perfectly with project completion timelines. You fund materials and labor upfront, complete the project profitably, receive payment, and repay the financing with prepayment discounts—all within the natural project cycle.
Manufacturing Operations utilize revenue based financing when equipment acquisitions produce immediate capacity expansion and ROI within 60-90 days. Tool and die manufacturers purchasing CNC machinery that enables next-day production increases. Plastic injection molding operations adding presses that allow them to fulfill backlogged contracts immediately. Metal fabrication shops upgrading equipment for precision work and higher margins. The 6-18 month RBF term perfectly matches equipment ROI timelines—invest today, increase production immediately, generate additional revenue within weeks, repay quickly with discounts.
Restaurants benefit from revenue based financing's daily or weekly repayment structure that aligns with consistent cash flow. When restaurants need kitchen equipment upgrades that immediately increase table turnover and revenue, when exclusive supplier relationships offer premium products at bulk discounts, when patio expansions or renovations generate immediate customer capacity increases—RBF provides capital now with repayment matching daily revenue deposits. Busy season? Higher payments. Slower period? Lower payments. The structure matches restaurant cash flow naturally.
Service Businesses including liquor stores, gas stations, medical spas, and medical practices generate predictable daily revenue that makes revenue-based repayment ideal. Liquor stores capitalizing on exclusive inventory opportunities at 40-60% below wholesale. Medical spas adding treatment equipment that generates immediate per-client revenue increases. Medical practices expanding to proven markets. Gas stations adding profit centers. The consistent cash deposits support daily or weekly repayment while seasonal fluctuations are naturally accommodated—you pay more when revenue is strong, less when it's slower.
The common thread: 6-18 month terms align with natural business cycles, immediate revenue conversion opportunities, and the ability to utilize prepayment discounts for minimal effective costs.
Who LVRG Really Is
LVRG has been providing strategic business financing for over 20 years because we understand what separates thriving businesses from struggling ones: the ability to act decisively when opportunities arise. We've successfully funded over 10,000 businesses with more than $1 billion in growth capital, and our clients return to us repeatedly because we deliver results.
We're business people who understand business people. Our team has operated businesses, managed growth, and deployed capital strategically. We know the difference between funding growth and funding survival.
We're not processing applications—we're evaluating opportunities. When you bring us a revenue based financing request, we're assessing whether the capital deployment makes strategic sense. Does the opportunity produce immediate revenue? Do the numbers support quick ROI? Is your business positioned to execute successfully?
The LVRG Advantage: We're not transactional—we're relational. Smart business owners choose us because we think like owners, not just lenders. We build ongoing partnerships that grow with your business, providing the strategic capital you need at every stage of expansion.
With in-house lending capabilities and a nationwide network of trusted financial partners, we build the right funding package to move your business forward—quickly, clearly, and with your long-term success in mind. Our clients come to us for speed and expertise. They stay with us because we deliver results that matter.
LVRG: Where capital meets clarity, and your business meets its next level.
Understanding Revenue Based Financing Rates and Costs
Factor Rate Structure: Our factor rates start at 1.15 and are based on your business strength, revenue consistency, and deployment opportunity. Unlike traditional loans with APR calculated over 10 years, factor rates provide total cost transparency upfront—you know exactly what you'll repay before accepting funds.
Aggressive Prepayment Discounts: We offer very aggressive prepayment discounts if paid back within 30, 60, or 90 days—discounts can be as high as 15% in some cases. Deploy capital for immediate revenue opportunities, generate returns quickly, and use prepayment discounts to minimize your effective financing cost.
Repayment Flexibility: Payments structured as daily, weekly, bi-monthly, or monthly ACH withdrawals based on your revenue patterns. Strong businesses often qualify for monthly payments. We take a percentage until total repayment is complete—no hidden fees, no surprises.
Why Smart Business Owners Choose Revenue Based Financing Over Other Options
Revenue Based Financing vs. Traditional Bank Loans: Banks require 30-60 days for approval, extensive documentation, perfect credit, collateral, personal guarantees, and 10-year terms that cost $139,000 to borrow $100,000. RBF provides 24-48 hour approval, minimal documentation, funding based on revenue performance, and 6-18 month terms with aggressive prepayment discounts.
Revenue Based Financing vs. SBA Loans: SBA loans take 60-90 days for approval, require extensive business plans, multiple forms of collateral, perfect financials, and lengthy 10-year repayment schedules. RBF provides immediate capital for time-sensitive opportunities that can't wait 90 days for approval—when the opportunity window is 48 hours, SBA loans aren't viable options.
Revenue Based Financing vs. Lines of Credit: Business lines of credit require strong credit, established banking relationships, and often provide lower limits than needed for major opportunities. RBF provides higher capital amounts ($25,000-$10 million) based on revenue performance rather than credit scores, with approval in hours rather than weeks.
Revenue Based Financing vs. Equipment Financing: Equipment-specific financing works well for long-term asset acquisition, but when equipment opportunities require immediate cash settlement (liquidation sales, trade show discounts, competitor asset sales), equipment lenders can't move fast enough. RBF provides cash in hand within 24 hours to capture time-sensitive equipment opportunities.
When Revenue Based Financing Makes the Most Sense:
Time-sensitive opportunities requiring capital in 24-48 hours
Growth investments producing revenue within 30-90 days
Project-based businesses with natural payment cycles of 60-120 days
Seasonal businesses needing repayment flexibility aligned with revenue
Strong revenue performers who don't qualify for traditional lending due to time in business or credit history
How Revenue Based Financing Actually Works
Revenue based financing from LVRG ranges from $25,000 to $10 million with terms typically spanning 6 to 18 months. Here's exactly how the process works:
Application to Funding: Apply online or call directly. Provide basic business information and 3-6 months of bank statements. Most approvals occur within 24 hours, funding within 48 hours via wire transfer or ACH.
Factor Rate Structure: We use factor rates starting at 1.15, not traditional APR. Borrow $100,000 at 1.15 factor, total repayment is $115,000. No hidden fees, no accumulating interest—you know the exact cost upfront.
Repayment Mechanisms: Payments structured as daily, weekly, bi-monthly, or monthly ACH withdrawals based on your revenue patterns and business model. We take a fixed percentage until the total is repaid. Strong businesses with consistent revenue often qualify for monthly payments.
Prepayment Advantages: We offer very aggressive prepayment discounts if paid back within 30, 60, or 90 days—discounts can be as high as 15% in some cases. Deploy capital for immediate revenue opportunities, generate returns quickly, and use prepayment discounts to minimize your effective financing cost.
Requirements:
Minimum $25,000 monthly gross revenue (consistent, not sporadic)
Minimum 6 months in business
Stable or growing revenue trends (we review 3-6 months bank statements)
Healthy cash flow and operational performance
Clear growth opportunity with immediate revenue potential
Real Stories, Real Results
Robert runs a successful concrete company that received an urgent call from a commercial developer: major retail project starting in 72 hours, original contractor defaulted, needed $425,000 in materials immediately to secure the contract. Project profit potential: $180,000. Banks couldn't move fast enough. Robert secured $425,000 in 36 hours through revenue based financing, ordered materials, mobilized crews, executed flawlessly. Project payment arrived in 75 days. Using our aggressive prepayment discount structure, total financing cost was substantially lower than traditional alternatives while capturing an opportunity that created six additional projects with the same developer worth over $900,000 in the following year.
James owns a thriving plastic injection molding operation that discovered equipment liquidation: three high-precision presses at 60% below market value, but seller needed cash settlement in 48 hours. The equipment would double his production capacity and enable him to fulfill contracts he'd been turning away. Purchase price: $680,000. Revenue based financing delivered $680,000 in 24 hours. Equipment installed in two weeks, capacity doubled, backlog fulfilled immediately. New capacity generated $95,000 additional monthly revenue. Financing paid in full strategically to minimize total cost. The equipment continues generating $95,000+ monthly, and the opportunity only existed because capital moved faster than the competition.
Marcus operates a high-volume liquor store that received an exclusive offer from a premium wine distributor in bankruptcy: $240,000 in high-end wine and spirits at 55% below wholesale, cash required in 5 days. Inventory included allocated bottles his customers had requested for months. Revenue based financing provided $240,000 in 48 hours. Inventory secured, products sold at premium margins within 45 days. Total revenue: $485,000. Using strategic prepayment timing, total financing cost was minimized while net profit exceeded $220,000. The exclusive inventory established his store as the premium destination, creating ongoing customer relationships and increasing monthly revenue by 40%.
Michael owns a medical spa and discovered advanced laser equipment at a medical trade show: manufacturer selling floor models at 50% discount, payment required before show ended in 48 hours. Equipment would add three new revenue-generating treatments and increase per-client revenue by 35%. Equipment cost: $195,000. Revenue based financing delivered $195,000 via wire in 36 hours. Equipment installed immediately, treatments launched in 10 days. Additional monthly revenue: $38,000. Strategic repayment timing minimized financing costs while equipment continues producing $38,000+ monthly in additional revenue.
Tony runs a successful Italian restaurant that needed to capitalize on an unexpected opportunity: kitchen equipment upgrade (walk-in cooler, commercial range, prep stations) available at restaurant liquidation for $145,000—60% below new equipment cost. The upgraded equipment would increase table turnover by 25% and reduce food waste significantly. Traditional financing would take weeks. Revenue based financing provided $145,000 in 48 hours. Equipment installed during a planned closure, operational improvements immediate. Increased daily revenue plus reduced waste generated an additional $28,000 monthly. Strategic repayment approach minimized total cost while equipment continues driving higher efficiency and revenue.
These aren't just financing stories—they're examples of operators who understood that speed of capital deployment creates competitive advantages unavailable to those operating on traditional timelines.
Revenue Based Financing: Pros and Cons
Advantages of Revenue Based Financing:
Speed: 24-48 hour approval and funding vs. 30-90 days for banks and SBA
Accessibility: Based on revenue performance, not credit scores or collateral
Flexibility: Repayment aligns with revenue—higher payments during strong periods, lower during slower times
Strategic Cost Management: Aggressive prepayment discounts can significantly reduce total financing cost
No Collateral: Revenue performance serves as qualification, not physical assets
Short Terms: 6-18 months aligns with project cycles and immediate ROI opportunities
Considerations with Revenue Based Financing:
Higher Factor Rates: Without prepayment discounts, factor rates are higher than long-term bank APR
Daily/Weekly Payments: Some businesses prefer monthly payments; strong revenue businesses often qualify for monthly structures
Short-Term Focus: Best for immediate ROI opportunities, not long-term asset acquisition
Revenue Requirements: Minimum $25,000 monthly revenue required; not suitable for pre-revenue or early-stage businesses
Best Fit: Established businesses with consistent revenue, immediate growth opportunities, and the ability to convert capital to revenue within 30-90 days.
Frequently Asked Questions About Revenue Based Financing
What is revenue based financing? Revenue based financing is a type of business funding where you receive a lump sum capital injection based on your monthly revenue performance, then repay through daily, weekly, or monthly payments over 6-18 months. Unlike traditional loans with 10-year terms, RBF is designed for short-term growth opportunities that produce immediate revenue returns.
How much does revenue based financing cost? Our factor rates start at 1.15, meaning you repay $115,000 for every $100,000 borrowed. However, with our aggressive prepayment discounts (up to 15% in some cases), effective costs can be significantly lower—often competitive with traditional bank financing when you account for opportunity capture and speed.
Is revenue based financing better than a bank loan? For time-sensitive growth opportunities requiring capital in 24-48 hours, yes—revenue based financing is significantly better. Banks take 30-60 days for approval, require extensive documentation and collateral, and cost more over 10-year terms. If you can deploy capital for immediate revenue conversion and use prepayment discounts, RBF often costs less total. For long-term asset acquisition without time pressure, traditional loans may make sense.
What are the requirements for revenue based financing? Minimum $25,000 monthly gross revenue, minimum 6 months in business, stable or growing revenue trends shown through 3-6 months of bank statements, and a clear growth opportunity with immediate revenue potential. We focus on revenue performance rather than credit scores or collateral.
How quickly can I get revenue based financing? Most approvals occur within 24 hours, with funding delivered within 48 hours via wire transfer or ACH. We've funded businesses in as little as 36 hours from initial application to capital deployment. Speed is a core advantage—when opportunities require immediate action, we move faster than any traditional lender.
What's the difference between revenue based financing and a merchant cash advance? Structurally, they're the same product with different names. The merchant cash advance industry developed a negative reputation, so many lenders rebranded as "revenue based financing." At LVRG, we're transparent about this—we structure both responsibly with aggressive prepayment discounts that can make the effective cost competitive with traditional alternatives when deployed strategically.
Can I pay off revenue based financing early? Yes, and we encourage it. Our prepayment discounts reward strategic deployment: discounts up to 15% in some cases when paid within 30, 60, or 90 days. Deploy capital for immediate revenue opportunities, generate returns quickly, pay back early, and minimize your effective financing cost.
What industries work best with revenue based financing? Construction and contractors (concrete, excavation, asphalt, roofing, landscaping), manufacturing (tool and die, plastic injection molding, metal fabrication), restaurants, liquor stores, gas stations, medical spas, and medical practices. Any business with consistent revenue that can convert capital to immediate revenue growth within 30-90 days is a strong fit.
How is repayment structured? Repayment occurs through daily, weekly, bi-monthly, or monthly ACH withdrawals based on your revenue patterns. We take a fixed percentage until total repayment is complete. Strong businesses with consistent revenue often qualify for monthly payment structures. The frequency aligns with your business cash flow naturally.
What can I use revenue based financing for? Any legitimate business growth opportunity: bulk inventory purchases, equipment acquisitions, project materials, location expansion, competitor acquisition, supplier discounts requiring immediate payment, seasonal inventory preparation. Revenue based financing works best for opportunities producing revenue within 30-90 days that enable strategic repayment with discounts.
Making the Decision
Business owners considering revenue based financing typically face immediate opportunities requiring capital on compressed timelines. They recognize their operational capacity enables converting capital to revenue faster than traditional financing timelines allow.
The question isn't whether you need capital—growing businesses constantly identify opportunities requiring investment. The question is whether you can convert capital to revenue fast enough to utilize prepayment discounts, and whether speed of deployment creates competitive advantage.
Revenue based financing makes strategic sense when:
Opportunities produce revenue within 30-90 days, enabling strategic prepayment with discounts
Speed is critical—opportunities exist for days or weeks, not months
Your business demonstrates consistent $25,000+ monthly revenue and operational capacity
Capital deployment has clear ROI substantially exceeding financing cost
You're funding growth opportunities with immediate returns
The businesses that win with revenue based financing understand timing dynamics: deploy capital in 24-48 hours, generate revenue within 30-90 days, pay back strategically using discounts, capture opportunities unavailable to competitors operating on traditional timelines.
Next Steps
Ready to explore what revenue based financing can do for your business? The conversation starts with understanding your opportunity and deployment timeline.
Call us directly at (855) 998-5874 to discuss your funding needs, or apply online to see what you qualify for.
We fund $25,000 to $10 million in revenue based financing for businesses ready to grow.
Minimum Requirements: $25,000+ monthly gross revenue | 6+ months in business | Stable financial position | Strategic growth opportunity
Most business owners are surprised by how quickly we structure and fund revenue based financing—and how competitive the effective cost becomes when deployed strategically with prepayment discounts.
The question isn't whether you need working capital—every growing business does. The question is whether you're ready to capture opportunities your competition will miss while waiting for traditional approval.
Your competitor is already moving. The opportunity won't wait. The capital is ready now.
Click the button below to apply now or contact our office at (855) 998-5874.
