Flexible Repayment
Revenue-Based Financing That Scales With Your Sales
Revenue-based financing ties repayment directly to a percentage of monthly or daily sales instead of a fixed payment, so the amount owed each period rises and falls with the business. Valhalla funds these structures directly, from $10,000 to $5,000,000, with approved businesses typically funded within 24 hours.
- $10,000 to $5,000,000 available
- Payment scales with monthly revenue
- No fixed collateral required
- Funded in 24 hours
Risk-free, no-commitment application. No hard credit pull to check options.
Structure
How Revenue-Based Repayment Is Calculated
Instead of committing to a fixed daily ACH amount, a revenue-based structure sets a percentage of gross monthly revenue or daily card sales that is remitted until the total payback amount is satisfied. If a business agrees to remit 10 percent of monthly revenue against a $120,000 payback obligation, a $200,000 month results in a $20,000 payment while a $100,000 month results in a $10,000 payment, and the total time to payoff shortens or lengthens accordingly.
This structure removes the risk of a fixed payment exceeding available cash during a slow month, which is the main cause of default stress in fixed-payment products during seasonal downturns. The trade-off is that a business cannot know its exact payoff date at the outset, and total interest cost, while fixed as a dollar figure, is paid over a variable timeline. Businesses with unpredictable but generally healthy revenue, such as seasonal retailers or event-based service providers, are the strongest fit for this structure.
- Payment tied to a set percentage of revenue
- No fixed payoff date; timeline flexes with sales
- Best fit for seasonal or variable-revenue businesses
- Requires ongoing revenue reporting or linked accounts
Sizing the Percentage
The percentage withheld is set at funding based on the business's margin and typical monthly deposit range, aiming to leave enough working capital for operating expenses even in a strong month. A percentage set too high can strain cash flow during peak months just as much as a fixed payment can strain it during a slow month, so Valhalla calibrates the rate against historical deposit data rather than a flat industry default.
Reporting Revenue Accurately
Because the payment is calculated from actual revenue, most structures require the business to report monthly sales or route payments through a linked account so the remittance can be verified against real deposits. Businesses that prefer not to share ongoing revenue data may find a fixed-payment product simpler to administer, even though it offers less flexibility during a downturn.
Comparing Revenue-Share to Fixed-Payment Products
A fixed-payment merchant cash advance or term loan offers a known payoff date and a predictable daily debit, which some owners prefer for budgeting purposes even if it is less forgiving during a slow stretch. A revenue-based structure trades that predictability for downside protection, since the payment automatically shrinks when sales soften, reducing the odds of a missed payment during a temporary dip.
Businesses should think about which risk they are more concerned about: the risk of a fixed payment straining cash flow in a bad month, or the uncertainty of not knowing the exact payoff date. Valhalla presents both structures where a business qualifies for either, and many owners choose revenue-share specifically because their industry has meaningful month-to-month swings in deposits.
Qualifying for Revenue-Based Financing
Standard qualifications apply: six or more months in business, $15,000 or more in average monthly deposits, a 500 or higher personal credit score, and four months of bank statements. Businesses with clear seasonal patterns or documented revenue swings are often better matched to this structure than a flat, industry-average approval, since Valhalla can size the remittance percentage around the actual pattern shown in the statements.
There are no upfront fees to apply, and businesses across all 50 states are eligible. Structured terms are typically ready within 48 hours, and funds are released within 24 hours of a signed agreement, consistent with Valhalla's standard funding timeline across products.
Minimum qualifications
- 6+ months in business
- $15,000+ monthly deposits
- 500+ FICO floor
- Active business bank account
The path to the hall
Funded in one working day.
Apply
One-page application. Entity details, monthly revenue, and what the capital is for.
Submit four statements
Your four most recent business bank statements. Underwriters return offers in 2–4 hours during business hours.
Choose your structure
Multiple offers side by side: factor or rate, term, daily vs weekly debit, holdback options.
Sign and fund
Sign before the 1 PM ET cutoff and funds wire the same day. After cutoff, next business morning.
FAQ
Revenue-Based Financing — questions worth answering.
How is revenue-based financing different from a merchant cash advance?
Both are repaid from business revenue rather than a fixed loan schedule, but revenue-based financing typically ties the remittance to a percentage of total monthly revenue rather than daily card sales specifically. The core difference from a standard fixed-ACH MCA is that the payment amount moves directly with reported revenue rather than staying constant.
Will my payment always be exactly the agreed percentage?
Yes, in a true revenue-share structure the remittance is recalculated each period based on actual reported or verified revenue, so the dollar amount changes month to month while the percentage stays fixed. This is the core mechanism that allows payments to shrink automatically during slower periods.
How do I know when the financing will be paid off?
The payoff date is not fixed in advance because it depends on how quickly revenue accumulates toward the total payback amount. Valhalla provides an estimated timeline based on historical revenue at the time of funding, but the actual date will shift if revenue comes in higher or lower than that estimate.
Do I have to share ongoing sales data?
Most revenue-based structures require some form of ongoing reporting, whether through linked bank or processor accounts or periodic statement submission, so the remittance can be calculated and verified accurately. Businesses uncomfortable with this can typically opt for a fixed-payment structure instead.
Is revenue-based financing cheaper than a fixed-payment advance?
Not necessarily; the total dollar cost is generally comparable for similar risk profiles, since the trade-off is flexibility rather than a lower price. The benefit is reduced strain during slow periods, not a lower total cost of capital, so businesses should compare the total payback figure across structures.
Can seasonal businesses qualify for this structure?
Seasonal businesses are often the best fit for revenue-based financing precisely because a fixed payment can be difficult to sustain during their off-season. Valhalla reviews the full deposit history, including seasonal swings, to size a remittance percentage that fits the business's actual annual pattern rather than an average month.
Related
Related funding options and reading
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