What is revenue‑based financing and how does it work for e‑commerce sellers?

Discover how revenue‑based financing gives online sellers working capital, repaid as a % of sales, with no fixed term, collateral or credit‑score impact.

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Short answer

Revenue‑based financing (RBF) gives e‑commerce sellers cash from a % of gross sales, no term or collateral; you repay % monthly until a cap is reached. Apply fast, no credit‑score hit.

Revenue‑based financing (RBF) gives e‑commerce sellers cash from a % of gross sales, no term or collateral; you repay % monthly until a cap is reached. Apply fast, no credit‑score hit.

See your rate in seconds—no credit‑score hit.

The specifics

Typical eligibility requires 6–12 months of operating history, $20k+ in monthly gross sales, and a DSCR above 1.25× relative to net cash flow.Crestmont. Lenders usually set the repayment share at 8–12% of each month’s gross revenue, capped at 1.5–2× the total loan amount—so if you need $50k, you’d pay back $75–$100k total eventually.Settle. The term is variable; repayment stops once the cap is met, often taking 12–24 months depending on sales volume.IntelMarketResearch.

RBF fees are based on the repayment share not a fixed interest rate, but lenders may add a 3–5% premium if collateral is absent.Payoneer. Use our affordability calculator to see how much you can afford to repay.

Qualification & edge cases

If you operate a smaller niche store or are less than 6 months old, many RBF firms will require a higher monthly revenue of $30k+ or a higher DSCR. Those with a credit score below 620 may face a higher discount rate or be directed to merchant cash advances (APR 18‑25%). Businesses that have seasonal spikes can negotiate a higher cap during peak months. If you already have a payment‑processing agreement with PayPal or Stripe, you can quickly satisfy the revenue calculation.DataIntelo.

Background & how it works LAST

RBF providers pre‑fund based on your historical revenue data, often pulling real‑time sales from your Shopify or Amazon seller account. They approve the amount, deliver the capital, and recoup the loan by taking a fixed percentage of each month’s gross sales until the repayment cap is hit. Because there is no fixed term, the lender’s exposure ends when the cap is reached, not when a predetermined month comes due.

Bottom line

RBF lets you access working capital instantly, repay by a simple percentage of your monthly sales, and requires no credit check or collateral. Get a rate and funding in 2 minutes with no credit‑score impact.

Disclosures

This content is for educational purposes only and is not financial advice. financingecommerce.com may receive compensation from partner lenders, which may influence which products are featured. Rates, terms, and availability vary by lender and applicant qualifications.

Sources

Related questions

How much can I repay with revenue‑based financing?

You repay a set % of each month’s gross revenue—usually 8–12%—until the total repayment cap, often 1.5–2× the original loan amount, is met.

What is the repayment cap in RBF?

The cap is a fixed dollar limit, typically 1.5–2 times the loan. Once you hit it, repayments stop, regardless of how many months it takes.

Will I lose my credit score if I apply for RBF?

Most RBF lenders perform a soft pull, meaning your credit score isn’t affected during the application process.

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