Diversity of Products Within Revenue-Based Financing
Revenue-based financing has become extremely popular; So popular that it’s spawned its own variations of products. Some are loans, some are not. Many of the terms in the public vernacular are simply colloquial. The details are instead in the individual contracts. Refer to those contracts to understand how something works. Loans are absolutely repayable while non-loans structured as purchases tend to not be. The loans tend to have a hard term length built in if a merchant’s sales are well below what was projected even if it was based on a percentage of sales. Below is a small snapshot of how products are marketed with a percentage-of-sales payment mechanism.
One thing is certain. The trend of relying on a merchant’s revenue to determine payments is rapidly expanding.
Product diversity in revenue-based financing
Sample of small business finance providers
Paid Via a % of Sales You Say?
| Company |
What they call it |
Paid Via a % of Sales |
Loan |
Not a Loan |
| DoorDash Capital |
Merchant Cash Advance |
✓ |
|
✓ |
| Walmart Capital |
Merchant Cash Advance |
✓ |
|
✓ |
| eBay Seller Capital |
Merchant Cash Advance |
✓ |
|
✓ |
| Lightspeed Capital |
Merchant Cash Advance |
✓ |
|
✓ |
| Shopify Capital |
Merchant Cash Advance |
✓ |
|
✓ |
| Pipe |
Merchant Cash Advance |
✓ |
|
✓ |
| Wayflyer |
Merchant Cash Advance |
✓ |
|
✓ |
| Coalition of funders |
Revenue Based Financing |
✓ |
|
✓ |
| Founders First Capital Partners |
Revenue Based Financing |
✓ |
✓ |
|
| Washington State RBF Fund |
Revenue Based Financing |
✓ |
✓ |
|
| NYC Future Fund |
Revenue Based Financing |
✓ |
✓ |
|
| Clearco |
Cash Advance |
Partially |
✓ |
|
| Square Loans |
Business Loan |
✓ |
✓ |
|
| Shopify Capital |
Business Loan |
✓ |
✓ |
|
| PayPal Working Capital |
Business Loan |
✓ |
✓ |
|
Last modified: March 30, 2026
Category: merchant cash advance, Revenue Based Financing