A revenue-based line of credit looks at what your business actually brings in. For established businesses with steady deposits, it can offer ongoing access to capital without leaning only on personal credit. No hard credit pull to start.
What this means: A reusable line sized around your business deposits.
New to these words? See the glossary. Every decision and every term comes from the lender.
With a revenue-based line, the lender sizes the line mainly around your business revenue and banking history. You draw what you need, repay on the schedule in your agreement, and as you repay, room on the line typically becomes available again.
Because the focus is on business performance, owners whose personal credit is not perfect sometimes find this path more open than traditional bank credit. The terms, costs and repayment schedule vary by lender, and we walk through them with you before you make any decision.
A term loan gives you one lump sum and a fixed repayment schedule. That works well for a single, planned purchase. A revenue-based line is built for ongoing or unpredictable needs: you only draw when you need to, which can keep borrowing smaller and more targeted.
If your need is a one-time investment in equipment or property, equipment financing or SBA and long-term options may fit better. If your need is ongoing, a line is often worth comparing. Our line of credit hub lays out both line options side by side.
Revenue-based lines are often discussed with businesses that have been operating for a while and show consistent monthly deposits: restaurants, contractors, retailers, medical and service businesses, and many others. Seasonal businesses may also find a line useful to smooth the slower months.
If your revenue is still building, a SLOC or startup funding path may be a better place to look first.
Before you accept any line, look at how draws work, the payment frequency, any fees for drawing or maintaining the line, and what happens if revenue dips. Ask how renewals are handled. We help you put these details side by side so you can compare offers fairly.
Lenders commonly ask for three to six months of business bank statements, a short application and ID. Having clean, consistent statements is one of the most helpful things you can bring.
We are a broker, so we look across our lending partners for options that match your revenue pattern and goals. Every decision is made by the lender, and you are never obligated to move forward. When it feels right, start your path with a short application.
Compare line of credit options side by side.
Short-term funds for payroll, inventory, marketing or a slow season. Often repaid from future sales.
Credit lines arranged across lenders, built around a strong personal credit profile.
Credit shapes the options open to you. See how lenders look at it, check where you stand and find help if you need it.
Revenue-based lines focus mainly on business deposits and revenue. Credit may still be considered by some lenders, and there is no hard credit pull to start.
Lenders usually look at average monthly revenue, deposit consistency and existing obligations. Each sets its own criteria.
They are different structures. An MCA is usually a one-time advance against future receivables, while a revenue-based line is reusable credit. We can explain the differences for your case.
Many revenue-based lines allow that. Your agreement will spell out how it works.
Applying is free and takes a few minutes. Here is what to expect, step by step.
A short online application, or a call with our team. About the business, what the money is for and how much you have in mind.
My team and I review what you shared and call or text you, usually to ask a few questions and explain what we see.
Usually recent bank statements and your own credit report through our IdentityIQ link. No hard credit pull to start.
We shop your file with lending partners and walk you through any offers, including the total payback.
Take an offer or don't. There is never pressure, and you can stop at any point.
Timing depends on the option and the lender. We'll give you honest expectations once we know your situation. Rather talk first? Book a free 20-minute call.
A short, free application. No hard credit pull to start.
No pressure and no hard credit pulls to start. Tell us where your business stands, and we'll walk the options together.
