Revenue Is Your Collateral.
Revenue-based loans deploy capital against your existing revenue stream. Every month, a fixed percentage of gross receipts repays the advance — automatically. No equity. No fixed payment. No bank guarantee.
How Revenue-Based Loans Work
The structure is straightforward. You receive a lump sum — typically 1 to 3 months of average monthly revenue. A fixed percentage of your monthly gross receipts automatically repays the advance.
When revenue is strong, repayment accelerates. When revenue slows — seasonal dips, slow months — repayment slows proportionally. The cost multiple (1.1x–1.5x) is fixed at origination.
Qualification Criteria
Most Magic Valley operators qualify if they meet these benchmarks:
- $10,000+ in average monthly gross revenue
- 6+ months in business with documented revenue history
- Active business bank account (3 months of statements required)
- No open bankruptcies or active liens that block financing
Credit score is a secondary factor. Lenders underwrite primarily against revenue consistency — not FICO score.
What Industries Qualify
Revenue-based loans work across every major industry in the Magic Valley:
- Construction & Contracting — Bridge mobilization costs or payroll gaps between contract payments
- Restaurants & Food Service — Fund equipment, renovations, or seasonal inventory
- SaaS & Technology — Borrow against MRR without touching the cap table
- Healthcare Practices — Bridge insurance reimbursement delays with revenue-backed capital
- eCommerce — Fund inventory ahead of peak seasons without diluting equity
- Ag-Tech & Agriculture — Deploy capital aligned with Magic Valley harvest cycles
RBF vs. SBA Loan vs. VC Equity
| Factor | Revenue-Based Loan | SBA Loan | VC Equity |
|---|---|---|---|
| Equity surrendered | None | None | 15–30% per round |
| Personal guarantee | Typically none | Required | Not required |
| Time to funding | 24–72 hours | 4–8 weeks | 3–6 months |
| Revenue requirement | $10k+/month | $250k+/year | High-growth trajectory |
| Repayment | % of monthly revenue | Fixed monthly payment | Exit event or dividends |