RBF · Denver, CO
Revenue-Based Financing in Denver, CO
Revenue-based financing in Denver works like one of the City's own taxes on retail marijuana stores: both take a fixed share of sales, so both rise and fall with revenue. The City's tax information page lists Denver's own rate on retail marijuana at 10.65%, against 5.15% for general sales, and Denver's 2026 Annual Disclosure Statement lists a 5.5% retail marijuana special sales tax alongside the 5.15% general rate. The State of Colorado adds its own 15% on retail marijuana, for a combined rate of 26.75%, while medical marijuana is taxed at the general rate. For a retail store weighing a remittance tied to a fixed share of revenue, the City's 10.65% is a cost that comes off the same sales first.
Check business eligibilityFunding specialists, not a lender. No approval guarantee.
Updated October 30, 2026
Decision guide
Revenue-based financing in Denver: a 5.5% special tax that scales like your sales
A good fit when
- A repayment that rises and falls with revenue the same way the City's 5.5% special tax does.
- A Denver retail marijuana store that wants repayments to move with monthly sales.
- Budgeting the combined 10.65% city tax rate separately from the revenue-based repayment percentage.
- Comparing the total repayment factor against months of typical revenue before signing.
Look elsewhere when
- Treating the City's 5.5% special sales tax as part of the financing repayment; they are separate.
- A fixed-payment term loan for a business with swinging month-to-month marijuana sales.
- Assuming the 10.65% city rate includes Colorado's own 15% state rate on retail marijuana.
- Signing a revenue-based agreement without knowing the total repayment factor in dollars.
| Item | Figure |
|---|---|
| City tax on $80,000 at the combined 10.65% city rate (5.15% general + 5.5% special) | $8,520 a month to the City |
| Revenue-based remittance at 8% of the same $80,000 in monthly revenue | $6,400 a month |
| Months to repay a $100,000 advance at a 1.3x total repayment factor ($130,000) | About 20.3 months |
Illustrative only, not an offer. The 8% remittance and 1.3x factor are assumptions set by the financing company, not the City; the 10.65% figure is Denver's own rate, separate from the State's 15% and RTD and special district taxes.
Where the special tax goes
Effective November 2021, revenue from the 5.5% special sales tax goes 2.5% to the General Fund, 2% to the Affordable Housing Property Tax and Other Local Revenue Fund, and 1% to the Malone Fund for small-business grants and loans, a share subject to annual budget approval that may be adjusted or eliminated.
Get every cost in writing
Colorado has no commercial-financing disclosure law like California’s or New York’s. Ask for the total repaid, fees, schedule and an annualized cost.
Official sources (checked October 22, 2026): City and County of Denver: Business Tax Information (tax rates), City and County of Denver 2026 Annual Disclosure Statement.
What a funding specialist adds. Nowbiz is a team of funding specialists, not a lender, and helps Denver cannabis and other cash-driven businesses compare revenue-based offers against their own sales pattern. The financing company sets the repayment percentage and factor.
Prepare
Documents that settle the decision
- Point-of-sale revenue reports
- Denver sales tax license and recent filings
- Six months of business bank statements
- Year-to-date profit and loss
- Two years of business tax returns
Local funding context
Why Denver, CO businesses consider revenue-based financing
Denver is the commercial and financial capital of the Mountain West, with a diversified economy of professional and financial services, healthcare and the Anschutz Medical Campus in neighboring Aurora, aerospace and technology, energy, a nationally known restaurant and craft-brewing scene, a large construction and development trade, and logistics along Interstates 25 and 70 and around Denver International Airport.
Denver sets a local minimum wage above Colorado’s already high floor, commercial rents in LoDo, RiNo, Cherry Creek and the Tech Center are the highest in the region, and construction labor is scarce and expensive. Weather is variable: heavy spring snow, summer hail and winter cold interrupt exterior work, and ski-season and summer tourism, conventions and sports calendars shape hospitality demand.
Revenue-based financing in local practice. In Denver, restaurants with strong delivery-platform and card revenue use a revenue share that eases during slow weeks; contractors rarely fit RBF because revenue is lumpy and invoiced rather than transactional. Agencies and firms with retainer revenue use RBF to hire ahead of contracted growth.
What to evaluate
- Underwriting emphasizes trailing revenue and deposit consistency
- Payments are structured around an agreed share of revenue
- Funding timing is set by the provider after approval
- The structure does not require giving up business equity
| Sector | Local driver | Products commonly considered |
|---|---|---|
| Restaurants and breweries | City wage floor, high rents, equipment | Equipment loans, lines, term loans |
| Contractors and subcontractors | Developer payment cycles, retainage | Factoring and equipment financing |
| Professional and tech services | Hiring ahead of contracts | Lines of credit |
| Healthcare practices | Equipment, buildouts | Equipment financing and SBA 7(a) |
Local numbers
Denver business and SBA lending figures
The Census Bureau counted 27,422 business locations with paid employees in Denver County, which includes Denver, in its 2023 County Business Patterns, and 73% of them had fewer than 10 employees. Average annual payroll was $89,800 per employee across 489,563 jobs.
In the SBA's 2026 fiscal year (October 2025 through September 2026), 52 lenders approved 198 SBA 7(a) loans totaling $106.0 million for businesses in Denver County, an average of $536,000 per loan. By number of loans, the most active were Newtek Bank, National Association (27 loans); The Huntington National Bank (20 loans) and U.S. Bank, National Association (20 loans). Certified development companies approved 18 SBA 504 loans totaling $19.4 million for real-estate and equipment projects there; the most active was B:Side Capital.
How to use these numbers: they describe the local market, not your odds. SBA figures count only loans the SBA guarantees, and a business is approved on its own revenue, credit and cash flow, whichever product it applies for, including revenue-based financing. A lender that is already active in the county is a reasonable place to ask about SBA options before comparing faster, costlier products.
| Measure | Denver County |
|---|---|
| Employer business locations (2023) | 27,422 |
| Share with fewer than 10 employees | 73% |
| SBA 7(a) loans approved, FY2026 | 198 ($106.0 million) |
| Lenders making SBA 7(a) loans here, FY2026 | 52 |
| SBA 504 loans approved, FY2026 | 18 ($19.4 million) |
Sources: U.S. Census Bureau, County Business Patterns 2023; U.S. Small Business Administration, 7(a) Lender and 504 CDC Activity Reports, FY2026 (data as of September 30, 2026, by project county). County figures include the whole county, not only Denver.
Local rules and help
What to check in Colorado before you apply
| Factor | Detail |
|---|---|
| State cost disclosure rule | No state commercial-financing disclosure law; ask for total cost and an annualized rate in writing |
| Where business liens are filed and searched | Colorado Secretary of State (free online searches) |
Checked October 15, 2026 against official sources: Colorado Secretary of State (free online searches). Confirm current rules before relying on them.
How it works
How revenue-based financing works
Revenue-based financing (RBF) advances a lump sum in exchange for a fixed percentage of future monthly revenue, remitted until the business has paid a predetermined cap, typically 1.1 to 1.5 times the advance. There is no fixed maturity: a strong sales month accelerates repayment, a weak one slows it. The structure was popularised by software and e-commerce investors and has spread to any Denver business with predictable, trackable revenue.
The full guide to revenue-based financing in Colorado covers the mechanics, the application review checklist, the timeline, best uses and watch-outs in depth.
Cost structure
Revenue-based financing cost: caps, revenue share and a $185,000 example
Check the definition of revenue, remittance percentage, repayment cap and any minimum payments. Ask how refunds, seasonality and reconciliation are handled. A fixed cap can have a very different annualized cost depending on how quickly the business remits it.
Hypothetical example for Denver, CO: at the stated inputs, $185,000 produces a total remittance between $203,500 and $277,500. An assumed collection period produces average payments between $16,958 and $23,125; actual revenue-linked collections can differ. Use the interactive estimator to test revenue and collection assumptions rather than treating an average as a fixed payment.
Build the same comparison from a dated written offer. Include amounts deducted before funding, payment dates, additional charges and any balance due at the end. Test the cash remaining in a weaker month before choosing an amount. Provider approval and a manageable payment are separate questions.
Payment estimator
Estimate revenue-based financing payments for a Denver, CO business
Illustrative revenue-based financing figures for $185,000 using hypothetical rate assumptions. Actual offers depend on underwriting and the funding partner.
$20,042 per month (assumed average) and $240,500 in total payback (1.30x; assumed 12 months; actual payments vary with revenue).
Hypothetical figures using the stated term or collection period. Fees are excluded. Revenue-based amounts are averages over an assumed period, not fixed payments.
| Scenario | Estimated payment | Total payback / customer settlement | Basis |
|---|---|---|---|
| Lower scenario input | $16,958 / month (assumed average) | $203,500 | 1.10x; assumed 12 months; actual payments vary with revenue |
| Midpoint | $20,042 / month (assumed average) | $240,500 | 1.30x; assumed 12 months; actual payments vary with revenue |
| Higher scenario input | $23,125 / month (assumed average) | $277,500 | 1.50x; assumed 12 months; actual payments vary with revenue |
Secure eligibility check
Fast Funding Review
Share a few details about your Denver business and the revenue-based financing amount you have in mind to start a confidential, no-obligation review. This step does not use a hard credit pull.
- No hard credit pull to apply
- Review and funding times vary by provider
- 5+ years in the industry
- Encrypted, private document handling
Documents
Data and documents for a revenue-based financing application
Prepare the records requested by the provider. Complete documents help the review but do not guarantee a decision or funding date.
- 6 to 12 months of business bank statements or a live bank connection
- Read-only access to your payment processor, marketplace or subscription platform
- Government-issued ID for owners
- Formation documents and EIN
- A summary of existing financing and remittance schedules
- Year-to-date profit-and-loss for larger amounts
Alternatives
Alternatives to revenue-based financing in Denver, CO
Compare the products a Denver business is most likely to be offered alongside revenue-based financing; each guide below sets out structure, timing, credit guidelines and uses side by side.
Common questions
Revenue-based financing in Denver, CO: what owners ask
How is revenue-based financing different from an MCA?
The labels can overlap. Compare how payments are calculated, whether they adjust with actual revenue, the total repayment obligation, fees, reconciliation rights and guarantees. Do not assume every revenue-based offer has a particular payment frequency or lower cost than an MCA.
How quickly may revenue-based financing close in Denver, CO?
There is no single funding deadline for every provider. Ask for the expected review and disbursement dates after the file has been assessed, including any outstanding documents, verification and signing conditions. Do not commit to an expense on the assumption that an advertised fastest time applies to your request.
Is revenue-based financing only for software companies in Denver, CO?
No single industry defines every revenue-based product. Some providers specialize in software or recurring-revenue businesses; others consider different business models. Confirm the provider's industry, revenue-history and repayment requirements for the actual offer.
How does Denver’s construction labor shortage affect revenue-based financing for contractors?
Scarce crews and rising wages push contractors to finance equipment that substitutes for labor and to use lines of credit to pay workers promptly while developers pay in 60 to 90 days. Factoring general-contractor invoices is common on larger commercial jobs.
Are Denver breweries and restaurants good candidates for revenue-based financing?
Yes, provided the file reflects the city’s costs. Tanks, kitchen lines and refrigeration support equipment financing, card volume supports lines and revenue-linked products, and lenders look for steady deposits through the spring shoulder season between ski and summer peaks.
Which local resources complement revenue-based financing in Denver?
The SBA’s Colorado district office is in Denver, the Colorado SBDC network has a Denver centre, and the city’s Office of Economic Development and local CDFIs run loan and counselling programs, particularly for minority- and women-owned businesses.