Revenue-Based Financing - NexGen Lending

Short answer: Revenue-based financing gives your business capital up front in exchange for a share of future revenue until a set amount is repaid. Because payments track your sales, you pay more when business is strong and less when it slows. It’s fast, doesn’t dilute ownership, and leans on your revenue history more than your credit score.

At a glance

How you repay: A percentage of revenue until a fixed total is paid
Payment schedule: Weekly, biweekly or monthly
Best for: Businesses with steady sales and uneven months
Speed: Approvals typically in 1 to 24 hours
Ownership: Non-dilutive: no equity given up
Credit score: 500 minimum
E-commerce partner: Wayflyer, built for online brands

Fixed loan payments don’t care whether you had a record month or a quiet one. For restaurants, retailers, salons, e-commerce brands and other businesses with seasonal or uneven sales, that rigidity can strain cash flow right when you need room to breathe. Revenue-based financing was built around that problem. Here’s how it works, what to think through on cost, and how NexGen Lending helps you compare offers.

What is revenue-based financing?

Short answer: Revenue-based financing is a funding agreement where a provider advances capital and is repaid through a fixed percentage of your ongoing revenue until an agreed total is reached. There’s no equity involved, and the repayment pace adjusts automatically with your sales instead of following a fixed monthly schedule.

What is a holdback or remittance rate? It’s the percentage of your revenue that goes toward repayment, collected on a weekly, biweekly or monthly schedule from your deposits or card sales. A lower rate means smaller payments but a longer payback period.

How does revenue-based financing work?

Short answer: The provider reviews your recent revenue, usually through bank statements or connected sales accounts, and offers an amount, a total repayment and a percentage of revenue. Once funded, the agreed percentage is collected from your sales until the total is repaid. Strong months pay it down faster; slow months stretch it out.

You share recent bank statements or connect your sales platform.
The provider sizes an offer based on revenue consistency and volume.
You accept an amount, a total payback, a remittance percentage and a payment schedule: weekly, biweekly or monthly.
Funds arrive, and repayment is collected as a share of revenue on that schedule.

Who qualifies for revenue-based financing?

Short answer: Businesses with consistent, verifiable revenue are the best fit. Providers focus on monthly sales volume, deposit history and time in business more than personal credit. That makes revenue-based financing a practical option for owners whose credit is still building but whose sales are steady.

Consistent monthly revenue deposited into a business account
Several months or more of operating history
Clean bank statements without frequent overdrafts
For e-commerce: sales and ad-spend data from your platforms

What can you use revenue-based financing for?

Short answer: Most owners use it for working capital: inventory, marketing, payroll, seasonal stock-ups, hiring and short-term growth projects. It works best when the money produces revenue relatively quickly, since repayment comes from that revenue. Online brands often use it to fund inventory and ad spend ahead of peak seasons.

E-commerce sellers can work with specialized lenders like Wayflyer, which underwrite using store and marketing data. Seasonal businesses use it to bridge the gap between buying inventory and selling it; see how businesses get through slow seasons.

Based in Hoboken? See our guide to business capital in Hoboken, NJ.

How fast can you get funded?

Short answer: Revenue-based financing is one of the fastest options available. Through NexGen, many approvals come in 1 to 24 hours, and funding can follow quickly once you accept an offer. Having recent bank statements ready is the single biggest thing you can do to speed things up.

Revenue-based financing vs alternatives

Short answer: Revenue-based financing trades a higher cost for flexibility and speed. A term loan or SBA loan usually costs less if you qualify and can wait. A line of credit is better for repeated small draws. Revenue-based financing shines when sales are steady but uneven and you need capital fast.

	Revenue-based financing	Term loan	Business line of credit
Payments	Flex with revenue; weekly, biweekly or monthly	Fixed	Based on what you draw
Speed	Very fast	Fast	Fast once open
Credit weight	Lower; revenue matters most	Moderate to high	Moderate (650+ for NexGen LOC)
Best for	Inventory, marketing, seasonal gaps	One-time projects	Recurring cash flow needs

Compare all-in cost, not just the payment. Our guide on how to compare lender offers walks through it.

How to apply with NexGen

Apply online in minutes. Share how much you need and your recent revenue.
An advisor reviews your file. We confirm revenue-based financing is the right tool and flag anything that could cost you more than it should.
Compare offers. We shop your request across 150+ private lenders and partners, including Wayflyer, OnDeck, Mulligan Funding and Rapid Finance.
Get funded. Choose the offer that fits your cash flow and receive your capital.

Frequently asked questions about revenue-based financing

Is revenue-based financing a loan?

Structures vary. Some products are loans and others are purchases of future revenue. Your advisor will explain exactly what you’re signing and how repayment works before you commit.

Does revenue-based financing require good credit?

Credit is reviewed, but revenue history usually carries more weight. NexGen’s revenue-based programs start at a 500 credit score.

Do I give up equity?

No. Revenue-based financing is non-dilutive. You keep full ownership of your business.

Can I pay it off early?

It depends on the provider. Some offer discounts for early payoff and others don’t. Ask before you sign.

Is this the same as a merchant cash advance?

They’re related. Both are repaid from revenue. Terms, collection methods and costs differ by provider, so compare carefully. If you already have an expensive advance, see refinancing an MCA.

Does it work for online stores?

Yes. E-commerce brands are among the best fits, especially with partners like Wayflyer that underwrite using store and ad data.

Need capital that moves with your sales? Apply now or call (908) 639-4361.

Rates, terms and eligibility vary by lender and are subject to underwriting. NexGen Lending (SRJ Marketing INC dba NexGen Lending) arranges financing through a network of lending partners. This page is for general information only and is not financial, legal or tax advice.