Best Revenue-Based Financing for New Businesses

For a new business, the best revenue-based financing depends on how you get paid and how long you have been open: Merchant Fund Express is best if you already have steady deposits and need capital fast, from FICO 500; Square Loans, if you take payments with Square; Credibly, once you hit 6 months and $15,000 in monthly revenue; financing from your processor or sales platform, if you sell through one channel; and community microloans, if you want the lowest cost and can wait.

Revenue-based financing looks at your sales and deposits more than your years in business or your score. That makes it one of the few doors open to young businesses. But it also costs more than a bank loan, so below we explain when it is worth it and when it is better to wait a few months. Leer en español.

The best options, ranked

1. Merchant Fund Express (recommended funder). It reviews your sales and deposits, not just your credit, with decisions that often arrive in 2 to 4 hours. Amounts run $5,000 to $5,000,000, credit starts at FICO 500 and, in most cases, there is no collateral. It offers Spanish-speaking support and accepts applicants with an ITIN (no SSN needed). For a young business, what matters most is that your deposits are steady and your account does not show many negative days; each case is reviewed based on what your bank statements show.
2. Square Loans. If you take payments with Square, you can receive offers from $100 to $500,000 based on your time on Square, your volume and how often you make sales. It is invitation-only: if you do not see an offer in your dashboard, you do not qualify yet, and Square reviews your account daily. You repay with a fixed percentage of your daily Square sales, with no interest, and the money arrives the next business day (checked October 2026).
3. Credibly. Offers working capital, merchant cash advances and lines of credit, with funding up to $600,000. Its published requirements are 6+ months in business, $15,000+ in monthly revenue deposited into a business account and credit of 500 or higher (checked October 2026). It is an option once you are past the first six months.
4. Financing from your payment processor or sales platform. Several payment and e-commerce platforms offer advances to their own users, calculated from your sales history on that platform and repaid with a percentage of each sale. Check inside your account for an offer and read carefully what percentage they hold back.
5. Microloans from community organizations and CDFIs. The SBA microloan program offers up to $50,000 through nonprofit organizations to start or grow a business, with a maximum term of seven years. These usually cost less than revenue-based financing, but they ask for a plan, documents and time. In March 2026 the SBA announced it was extending its citizenship requirement to microloans; ask the organization whether your case qualifies or whether it has other funds.

How we rank

We do not hand out ratings or scores. We compare every option on the same criteria: speed, minimum time in business, minimum credit, ITIN acceptance, documents, amounts and collateral. The details for Square, Credibly and the SBA come from their official sites, checked in October 2026; if we could not confirm a detail, we left it out. You can read the full method in how we rank business funding options.

If this is your first time hearing about this product, first read the complete guide to revenue-based financing: how the payment is calculated, what a holdback is and how it differs from a loan.

Comparison table

How many months of sales you really need

Revenue-based financing does not ask for years, but it does ask for proof. This is what usually makes the difference for a young business:

• 0 to 3 months: few options of this kind will offer you anything, because there is not enough history to estimate your sales. Microloans, supplier credit or a business credit card fit better here.
• 3 to 6 months: if your deposits are steady and growing, some funders can review your case. Payment platforms sometimes offer small amounts to their users. Read funding with 3 months in business.
• 6 to 12 months: more doors open, like Credibly, and amounts grow with your sales.
• More than 12 months: you can compare against lines of credit and term loans, which usually cost less.

More than the number of months, quality matters: sales coming in every week, no long gaps, no frequent overdrafts, all in a single business account.

When it makes sense and when it does not

It makes sense when the money generates sales soon: inventory you know will sell, a machine that doubles your output, a large order from a confirmed customer or the busy season ahead. Because the payment depends on your sales or is collected frequently, it works best when the money comes back fast.

It does not make sense for covering recurring losses, testing an idea that is not selling yet, or expenses that pay off over years, like remodeling your space. In those cases the cost piles up without the business generating the means to cover it.

Three questions before you sign:

1. Can I explain in one sentence how this money will generate more in sales than it costs?
2. Does the payment fit in my worst week of the last three months?
3. Will I compare this offer with at least one other, in writing?

If the answer to any of these is no, wait, borrow less or look for a cheaper option. To see every route open to a business that is just starting, see the best business funding for startups.

Typical mistakes new businesses make with this financing

• Taking the first offer that shows up. New businesses get flooded with offers by email and text as soon as they register their LLC. Always compare with at least one other, in writing.
• Borrowing the maximum you are offered. Being approved for an amount does not mean you need it. The more you take, the more you repay and the more the holdback weighs on your sales.
• Taking a second advance to cover the first. It is the fastest way for a young business to run out of cash flow. If the payment does not fit, talk to your funder about lowering the payment before adding another.
• Forgetting taxes. New businesses often underestimate what they need to set aside for the IRS. If financing eats that money, the problem shows up in April.
• Confusing sales with profit. You can sell a lot and earn little. Before you finance growth, check your real margin by product or service.

How to get your new business ready to apply

1. One business account. Deposit all your sales there: card, cash, Zelle, transfers. What lands in personal accounts does not count.
2. No negative days. Overdrafts are one of the first red flags funders look for.
3. Keep personal expenses separate. If you pay your home rent from the business account, your numbers look worse than they are.
4. Register your business. EIN, LLC or DBA, and local licenses up to date. Many funders ask for them.
5. Have your sales reports ready. Export monthly reports from your point of sale or platform.
6. Ask only for what you need. An amount that is reasonable for your sales is more likely to be approved and easier to repay.

Once your business shows steady sales, Merchant Fund Express reviews your sales and deposits, and applying is free and does not affect your credit: you can apply with Merchant Fund Express in a few minutes.