A traditional small business loan might have lower rates — but most growing businesses can't qualify. Revenue Based Financing funds in 24 hours with revenue as the primary qualifier. Here's the full comparison with real numbers.
Apply for RBF — 24-Hour FundingTalk to a funding advisor
Choose RBF if: You need capital in 24 hours, your credit is below 650, you've been in business less than 2 years, or you can't wait 30–90 days for bank approval. RBF approves based on revenue — not credit score.
Choose a traditional small business loan if: You have 650+ credit, 2+ years in business, strong financials, and time to wait. Bank rates (6–12% APR) are significantly cheaper than RBF factor rates.
Reality check: 80%+ of small business loan applications are declined by banks. If you need capital now and your bank says no — RBF is the answer.
MFE's Revenue Based Financing (RBF) is a fixed-payment advance based on your monthly bank deposit revenue. It's designed for businesses that need capital fast without the red tape of traditional lending.
Monthly revenue: $65,000 | Advance: $78,000 (1.2× monthly revenue)
Factor rate: 1.28x | Total payback: $99,840 | Cost: $21,840
Term: 9 months | Daily ACH: $99,840 ÷ 180 business days = $555/day
Used for: 3 new HVAC units ($45K), van wrap and marketing ($12K), new technician hire and training ($21K). Revenue increased from $65K to $95K/month within 6 months.
A traditional small business loan from a bank or credit union uses APR-based interest, monthly installment payments, and a rigorous credit and financial underwriting process.
Loan amount: $100,000 | APR: 9% | Term: 60 months
Monthly payment: $2,076 | Total paid: $124,560 | Interest cost: $24,560
Requirements to qualify: 700+ credit score, 2+ years business history, $150K+ annual revenue, 2 years tax returns showing profitability, personal financial statement. Application to funding: 45–60 days.
| Requirement | RBF (MFE) | Traditional Bank Loan |
|---|---|---|
| Min. Credit Score | 500+ | 650–700+ |
| Time in Business | 6+ months | 2+ years |
| Revenue Requirement | $10,000+/month deposits | $150,000+/year, profitable |
| Tax Returns | Not required | 2 years required |
| Business Plan | Not required | Required for most loans |
| Collateral | Not required | Often required (equipment, real estate) |
| Personal Financial Statement | Not required | Required |
| Profitability Required | No — revenue-based | Yes — must show profit |
| Application Time | 2 minutes | Days–weeks |
| Approval Time | 2–4 hours | 30–90 days |
| Funding Time | Same day–24 hours | After full underwriting |
| Product | Rate | Term | Monthly/Daily Payment | Total Cost | Time to Fund |
|---|---|---|---|---|---|
| Bank Term Loan | 9% APR | 60 mo | $1,557/mo | $18,420 | 45–60 days |
| Bank Term Loan | 12% APR | 36 mo | $2,490/mo | $14,640 | 30–45 days |
| Online Lender | 24% APR | 24 mo | $3,956/mo | $19,944 | 3–7 days |
| MFE RBF (1.25×) | 1.25 factor | 12 mo | $391/day | $18,750 | 24 hours |
| MFE RBF (1.35×) | 1.35 factor | 12 mo | $422/day | $26,250 | 24 hours |
At competitive factor rates, MFE's RBF can match the total cost of a bank loan — but funds in 24 hours instead of 45–60 days and requires no tax returns, collateral, or profitability. For businesses that qualify for bank loans, banks are cheaper. For everyone else, MFE is the solution.
A contract just came in that requires $80K in materials by next week. A bank loan takes 60 days. RBF funds tomorrow. The speed premium of 10–20% in cost is justified by the revenue you'd lose waiting.
Fast-growing businesses often show losses because they're reinvesting revenue. Banks see a loss and decline. MFE sees $80K/month in deposits and approves — because revenue is what matters.
Medical emergency, divorce, or a prior business failure can crater your personal credit score. RBF at 500+ credit score gets you capital while you rebuild. Banks require 650–700.
Banks require 2 years in business and 2 years of tax returns. If you started 8 months ago and have $25K/month in revenue, MFE can fund you. Banks can't.
Revenue based financing (RBF) uses fixed daily ACH payments based on your revenue, approves in 24 hours, and requires no collateral or strong credit. A traditional small business loan uses monthly payments with APR-based interest, requires good credit (650+), collateral, and 2+ years in business — and takes weeks to fund.
Yes, in most cases. RBF uses factor rates (1.1–1.5x) which equate to higher effective rates than traditional bank loans. However, RBF funds in 24 hours vs 30–90 days for bank loans, requires no collateral, and approves businesses that banks decline. The premium is for speed and accessibility.
MFE's RBF approves businesses with credit scores as low as 500. Approval is primarily based on monthly revenue — $10,000+ in bank deposits. Traditional small business bank loans typically require 650+ personal credit and 2+ years of profitable financials.
MFE can approve and fund RBF in as little as 24 hours. Submit 3 months of bank statements and basic business information. Traditional bank loans take 30–90 days from application to funding.
Yes. MFE's RBF is available for businesses with as little as 6 months in business. Traditional bank loans typically require 2+ years of business history and 2 years of tax returns.
MFE's RBF advances up to $500,000. Funding amount is typically based on 1–2x your average monthly revenue. A business with $50,000/month in deposits may qualify for $50,000–$100,000.
No. MFE's RBF is unsecured — no specific collateral is required. A UCC-1 blanket lien on business assets and a personal guarantee are standard, but no specific asset is pledged.
A traditional loan makes sense when you have 650+ credit, 2+ years in business, strong financials, and can wait 30–90 days for funding. Bank loans offer lower rates (6–12% APR) and longer terms. If you qualify, the lower cost is worth the longer process.
MFE's Revenue Based Financing approves in hours, funds in 24 hours, and doesn't require tax returns, collateral, or a 700 credit score.
Apply in 2 Minutes (305) 384-8391Expertise: Our team includes certified funding specialists with years of experience helping businesses access capital.
Trust & Transparency: We're committed to transparent lending practices with no hidden fees or surprise terms.
Fast Approvals: Our streamlined process provides decisions within 24 hours in most cases.
Flexible Solutions: We work with you to customize funding solutions that match your specific business needs and cash flow.