For e-commerce and subscription businesses
Revenue-Based Finance
Revenue-based finance is funding repaid as a fixed share of your monthly revenue until a pre-agreed total is paid back. It's built for online and subscription businesses, with providers connecting to your sales platforms to decide quickly.
Funding Plus compares revenue-based finance providers alongside loans and lines of credit, so you can see which works out cheapest for your growth plans.
- Repayments flex with revenue
- No equity given up
- Decisions using your sales data
Reviewed by the Funding Plus team · Last updated October 2026
Step 1 of 3 · Revenue-Based Finance
How much do you need?
Takes about a minute. No impact on your credit score.
Revenue-Based Finance at a Glance
- Amounts
- £10k – £5m
- Repayment
- 5% – 25% of revenue
- Decision
- 1 – 7 days
- Security
- None
- Best for
- Online and SaaS
Typical figures across the market. Your offers depend on your business, the lender and the security available.
How Revenue-Based Finance Works
- 1Connect your platformsShopify, Amazon, Stripe, your bank and ad accounts, depending on the provider.
- 2Get an offerAn amount, a fixed fee and the share of revenue you'll repay.
- 3Receive fundsOften paid within days, sometimes straight to a supplier or ad platform.
- 4Repay from revenueA set share of monthly revenue is collected until the agreed total is repaid.
How Much Does Revenue-Based Finance Cost?
Revenue-based finance usually charges a flat fee on the amount advanced, rather than interest. Like a merchant cash advance, faster repayment means a higher effective annual cost.
- A flat fee, often 5% to 15% of the amount
- A fixed share of revenue each month
- No equity or board seats given up
- Some providers fund specific spend, like stock or ads
Worked example
£50,000 for stock and ad spend
- Amount advanced
- £50,000
- Flat fee (8%)
- £4,000
- Total repayable
- £54,000
- Monthly revenue
- £90,000
- Share collected (10%)
- £9,000 a month
- Estimated time to repay
- About 6 months
Illustrative only, not a quote. Repayment time depends on your actual revenue.
Who Can Get Revenue-Based Finance?
- Online, subscription or recurring revenue
- Usually at least 6 to 12 months' trading
- Monthly revenue of £10,000 or more for most providers
- Sales data the provider can connect to
- Healthy margins and repeat customers
What You'll Need to Apply
- Access to sales platforms (Shopify, Amazon, Stripe)
- Business bank account connection
- Recent management accounts for larger amounts
Pros and Cons of Revenue-Based Finance
Advantages
- Repayments fall when revenue does
- Fast, data-driven decisions
- No equity given up
- Good for funding stock and marketing
Things to watch
- Can cost more than a loan
- Needs connected sales data
- Revenue share reduces cash in good months
- Not suited to irregular or project income
What Businesses Use It For
Stock purchases
Fund inventory ahead of peak season and repay as it sells.
Marketing and ad spend
Fund campaigns with a clear return and repay from the revenue they bring in.
Subscription growth
SaaS and subscription businesses borrow against recurring revenue.
Revenue-Based Finance vs Other Options
| Option | Best for | Typical speed | Security |
|---|---|---|---|
| Revenue-based finance | Online and subscription businesses | 1 – 7 days | None |
| Merchant cash advance | In-person card sales | 1 – 5 days | None |
| Trade and stock finance | Paying suppliers upfront | Days to weeks | The goods |
| Unsecured business loan | Steady, predictable income | 1 – 5 days | None (guarantee usual) |
Who Uses Revenue-Based Finance?
Revenue-based finance is most common among online sellers and subscription businesses.
Customer story
“[Real customer story for Revenue-Based Finance: what they needed, how quickly it was arranged and what it let them do.]”
[Name], [Role], [Business name] · [Amount] revenue-based finance
Revenue-Based Finance FAQs
How is it different from a merchant cash advance?
Both are repaid from sales. A merchant cash advance is tied to card terminal takings, while revenue-based finance uses all revenue, usually online.
Do I give up equity?
No. You repay a fixed total and keep full ownership.
Is revenue-based finance regulated?
Most products for limited companies aren't regulated by the FCA. Read the agreement carefully.
What if my revenue drops?
You repay less that month. Some agreements have a minimum payment or a maximum term, so check the terms.
How much can I raise?
Often up to one to three months of revenue, depending on growth and margins.
Related Guides
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