Compare · revenue-based finance
Revenue-based finance vs a business loan: an honest comparison
Revenue-based finance (RBF) vs a structured term loan or working-capital line: cost, repayment mechanics, dilution and when RBF genuinely fits.
Revenue-based finance (RBF) advances cash in exchange for a fixed share of future revenue until a set multiple is repaid. It is fast and flexible, and it suits some high-margin online businesses well. Westford does not provide RBF; we provide term loans and revolving lines priced as interest.
The right answer depends on your margins, growth and how predictable revenue is.
| Revenue-based finance | Westford loan / line | |
|---|---|---|
| Cost basis | Fixed multiple of advance | Interest rate + stated fees |
| Repayment | % of revenue, often daily/weekly | Scheduled monthly or revolving |
| Amount | Typically smaller | USD 50,000 – 250M |
| Collateral | Usually none | Secured or unsecured options |
| Speed | Very fast | Under USD 10M: typically less than 14 days |
When RBF can fit
- Small, fast-growing e-commerce or SaaS businesses
- Highly seasonal revenue where a % of sales is easier than fixed payments
- Amounts below Westford's USD 50,000 minimum
When a loan or line usually fits better
- Established revenue and two years of accounts
- You want a known interest rate rather than a revenue multiple
- Larger amounts — USD 50,000 to 250M
- You want to avoid daily or weekly revenue sweeps
Compare the true cost
Convert an RBF multiple into an effective annual rate using the expected repayment period. Faster growth means faster repayment — and a higher effective rate. Use our calculator for the loan side.
Next steps: check the eligibility checker, review indicative rates, run the calculator or apply. Prefer to talk? Call +1 (302) 579-5439 or book a deal officer.
Indicative information only; not an offer of credit. All facilities are subject to credit approval, KYC and documentation.
People also ask
Does Westford offer revenue-based financing?
No. We offer term loans and unsecured working-capital lines instead.
Is RBF more expensive than a loan?
Often, once the multiple is converted to an effective annual rate — but it depends on how quickly you repay.
Can I refinance RBF with Westford?
Yes, qualifying businesses can refinance RBF or merchant cash advances into a structured term loan.
How are fees handled?
Any fees are set out in writing in your term sheet and facility agreement before you commit. Only pay into bank details confirmed in your signed agreement — never by gift card, crypto or to a personal account.
USD 1M+ facilities
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Mon–Fri 8 AM–6 PM local
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Mon–Fri 8 AM–6 PM local
Call +1 (302) 579-5439 or WhatsApp, or hold a 45-minute deal-officer slot below.
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