Capital that flexes with your sales.
Repayment that moves with revenue — heavier in strong months, lighter in slow ones. We structure the advance around how your business actually earns, through our Stretch Finance affiliate.
What is revenue-based funding?
Revenue-based funding is an advance against future revenue, repaid as a fixed percentage of sales rather than a fixed monthly payment — so payments scale down in slow months and up in strong ones.
That percentage is the whole point. A fixed loan payment doesn’t care what kind of month you had; a revenue share does. When you have a slow month, the remittance flexes with it. When sales surge, you work the balance down faster. We’re not standing outside your business collecting a number — we share the rhythm of it, which is why this structure suits seasonal swings and short cash-conversion cycles so well.
It also changes what we underwrite. We size and evaluate revenue-based funding around revenue performance — your deposits and receipts, and the consistency behind them — rather than collateral or FICO alone. Capital Source has funded businesses since 2015, with over $500 million in active funding programs and no SIC-code restrictions on the industries we’ll consider.
When is revenue-based funding the right tool?
Revenue-based funding fits best when the business is growing quickly or running strong, consistent sales — and needs capital sooner than collateral-based structures can move. Be clear-eyed about the trade: that flexibility is priced accordingly, so the best uses are the ones that grow your earning capacity rather than patch a hole. The operators we fund typically put it to work in four places:
Expanding to meet demand
More staff, more capacity, a second location — when demand is already proven and the constraint is capital, not customers.
Scaling proven marketing
When you know what a channel returns, funding more of it is a structuring decision, not a gamble.
Buying inventory in bulk
Volume pricing rewards businesses that can buy big. The advance funds the buy; the margin funds the remittance.
Bridging the season
Stock up and staff up ahead of your busy window — or carry through the quiet one — with payments that follow the curve.
Remittances are typically automatic — a daily or periodic ACH, or a split of card-processing receipts — so repayment runs in the background while you run the business.
Your revenue is the asset.
Tell us how the business earns and where it’s headed — we’ll structure an advance around the rhythm of your sales.
What if a different structure is the better lever?
Sometimes it is — and we’d rather build you the right structure than sell you this one. If your value sits in equipment, inventory, or unpaid invoices, a collateral- or receivables-based facility may cost less and stretch further:
- Asset-Based LendingBorrow against what the business owns
- Invoice FactoringTurn receivables into working cash
- Line of CreditDraw, repay, and redraw as needs move
- All SolutionsThe full menu of structures we build
Not sure which fits? That’s our job, not yours — read about how we operate, or start the conversation and we’ll design around the deal.
Frequently asked questions
How is revenue-based funding different from a loan?
A loan carries a fixed monthly payment regardless of how the month went. Revenue-based funding is an advance against future revenue, repaid as a fixed percentage of sales — so the dollar amount you remit scales with what the business actually earns.
What happens if I have a slow month?
Because the remittance is a percentage of revenue, a slower month typically means a smaller dollar remittance. The structure is designed to flex with your sales rather than hold you to a fixed amount, with the specifics governed by each funding agreement.
What do you evaluate?
We look at revenue performance — deposits, receipts, and the consistency of your sales — and at the business itself, rather than collateral or FICO alone. All funding is subject to review, underwriting, and approval.
How fast is a decision?
Decisions can come as fast as 24–48 hours once we have what we need. Timing depends on the completeness of the file, so the fastest path is a full picture of your revenue up front.
Strong sales deserve capital that keeps up.
If the revenue is real and the opportunity is in front of you, let’s structure the advance around it.