Revenue-Based Term Loans
Term Loans Where Payments Move with Your Revenue
From $10K to $500K with payments that scale automatically — pay more when revenue is strong, less when it dips. No rigid fixed payments.
Ready to Get Started?
Apply now to get pre-qualified. Soft credit check only — no impact to your score. Instant pre-approval to share.
Rates, terms, fees, and funding timelines vary by lender, applicant eligibility, and program requirements.
Revenue-based term loans combine the predictability of a term loan with the flexibility of revenue-based repayment. Your monthly payment automatically adjusts based on your business revenue performance — you pay more when revenue is strong and less when it dips. This structure eliminates the biggest risk of traditional term loans: a fixed monthly payment you can't afford during a slow month.
This structure is ideal for businesses with seasonal revenue fluctuations, variable monthly income, growth-stage companies reinvesting heavily, and businesses that need fixed capital but flexible repayment. Underwriting is primarily revenue-focused, making this accessible to businesses that may not qualify for traditional bank financing due to credit score, time in business, or profitability.
Unlike a traditional term loan where you receive a lump sum and pay a fixed monthly amount, a revenue-based term loan gives you a lump sum but with payments calculated as a percentage of your monthly revenue. If your revenue doubles, your payment doubles (but remains affordable because it's proportional to revenue). If your revenue drops by half, your payment drops by half — giving you breathing room when you need it most.
This structure is particularly valuable for e-commerce businesses, seasonal retailers, agencies with project-based revenue, and any business where monthly income is unpredictable. The total repayment amount is typically fixed (similar to a factor rate), but the timeline to repay varies based on your revenue performance. If revenue is strong, you repay faster; if revenue is slow, you repay over a longer period.
A Simple, Fast Process
Connect Your Revenue Data
Link your business bank account. The lender analyzes your revenue history to determine your eligibility and loan amount.
Get Pre-Qualified
Based on your revenue data, you receive a pre-qualified loan offer. Revenue-focused underwriting means credit score is less critical.
Compare Loan Offers
Review offers from multiple revenue-based lenders — loan amounts, repayment percentages, and total repayment costs.
Receive Funds & Repay Flexibly
Receive your lump sum. Repayments automatically adjust based on your monthly revenue — more when strong, less when slow.
How Businesses Use This Financing
Seasonal Businesses
Get a term loan with payments that naturally decrease during slow months and increase during peak season.
E-Commerce Operators
Fund inventory and ad spend with payments that scale with your monthly sales performance.
Growth-Stage Companies
Deploy capital for growth while reinvesting heavily — payments stay proportional to revenue, not fixed.
Project-Based Businesses
Agencies and contractors with variable project revenue benefit from payments that flex with income.
Businesses Avoiding Fixed Payments
If rigid fixed monthly payments keep you up at night, revenue-based repayment provides peace of mind.
- Payments scale with revenue — no unaffordable fixed monthly payments
- Revenue-focused underwriting — accessible to more businesses
- No collateral required (many lenders)
- Fixed capital deployment — you know how much you're receiving
- Accessible to younger businesses (6+ months)
- Fast funding — 3–14 days from application
- Repay faster when revenue is strong, slower when it dips
- Builds a track record for graduation to traditional financing
- ◆6+ months in business
- ◆Minimum $10K monthly revenue (varies by lender)
- ◆Business bank statements (3–6 months)
- ◆Revenue verification through bank data
- ◆Business registration
- ◆Personal credit score 550+ (varies by lender)
- ◆Business bank account with online access
The E-Commerce Brand That Needed Holiday Inventory
How a revenue-based term loan funded $200K in inventory with payments that matched seasonal sales
An e-commerce brand selling outdoor gear needed $200,000 to purchase inventory for the holiday shopping season. The business generated 60% of its annual revenue between October and December, with very low sales from January through March. A traditional term loan with fixed monthly payments would have been dangerous — the $8,000/month payment would have been fine during peak season but crushing during the slow winter months.
The founder came to Let's Syndicate and was matched with a revenue-based term loan provider. The lender offered $200,000 with a total repayment of $248,000 (equivalent to a factor rate of 1.24), collected as 8% of monthly revenue. During peak season (October–December), when the business was generating $120,000/month, the payment was $9,600/month — easily affordable. During the slow months (January–March), when revenue dropped to $25,000/month, the payment was just $2,000/month — manageable.
The loan was repaid in 11 months instead of the projected 14, because the holiday season was stronger than expected. The flexible payment structure meant the business never faced a payment it couldn't afford — during the best months, it paid more and shortened the loan; during the worst months, it paid less and preserved cash flow. The founder later qualified for a conventional bank line of credit based on the revenue track record the loan had helped build.
Result: $200K funded. Total repayment $248K (factor 1.24). Payments ranged from $2K to $9.6K/month based on revenue. Repaid in 11 months. Graduated to bank line of credit.
Fixed Payments Are the Hidden Killer of Seasonal Businesses
A traditional term loan gives you a lump sum with a fixed monthly payment. For a seasonal business, that fixed payment is a ticking time bomb — manageable during peak season, devastating during slow months. Many seasonal businesses fail not because they're unprofitable, but because a fixed loan payment hits during a month when revenue can't cover it. The result is missed payments, damaged credit, and a spiral that can destroy an otherwise healthy business.
Let's Syndicate connects you with revenue-based term loan providers whose payments flex with your revenue. Your single application reaches lenders who understand that seasonal and variable revenue is normal — not a red flag. You compare repayment percentages, total costs, and terms from multiple lenders, and choose the one that gives you capital without the fixed-payment trap.
- Payments that flex with revenue — no unaffordable fixed monthly payments
- Lenders who understand seasonal and variable revenue models
- Compare repayment percentages and total costs from multiple lenders
- Repay faster when revenue is strong, slower when it dips
- A graduation path to conventional bank financing as your profile strengthens
Common Questions About Revenue-Based Term Loans
Your payment is calculated as a fixed percentage of your monthly revenue. For example, if your repayment percentage is 8% and your revenue is $50,000 in a given month, your payment is $4,000. If your revenue drops to $20,000 the next month, your payment drops to $1,600. The percentage stays constant; the dollar amount flexes.
The total repayment amount is typically fixed at the outset — similar to a factor rate. For example, a $100,000 loan with a total repayment of $124,000 means you'll repay $124,000 total, regardless of how long it takes. If revenue is strong, you repay faster; if revenue is slow, you repay over a longer period, but the total amount stays the same.
Both use revenue-based repayment, but there are key differences. MCAs are typically shorter-term (3–12 months) with daily or weekly debits. Revenue-based term loans are longer-term (6–24 months) with monthly payments and a fixed total repayment amount. Revenue-based term loans are generally more transparent and often cheaper than MCAs.
Minimum revenue requirements vary by lender but typically start at $10,000–$15,000 per month. Higher monthly revenue qualifies you for larger loan amounts. The key factor is consistency — lenders want to see that your revenue, even if variable, is predictable and sustainable.
Yes. Revenue-based term loans use revenue-focused underwriting, so your personal credit score is less critical than your revenue history. Many lenders approve borrowers with credit scores as low as 550. Lower credit may result in a higher total repayment cost (higher factor rate).
Move forward and Let's Syndicate.
Carry Let's Syndicate in Your Pocket
Install our mobile app on iOS or Android — track your application, chat with your concierge, and get funded on the go.
Let's Syndicate is a business funding marketplace. All credit decisions, rates, terms and outcomes are determined by participating lenders, investors or third-party providers.