RBF · Houston, TX
Revenue-Based Financing in Houston, TX
Revenue-based financing is repaid as a share of revenue until a fixed total is reached. In Texas it counts as sales-based financing under HB 700, so offers under $1 million from a registered provider come with a cost disclosure. The key question is how long the total takes to repay in a slow stretch.
Check business eligibilityFunding specialists, not a lender. No approval guarantee.
Updated October 30, 2026
Decision guide
Houston revenue-based financing: what happens to the payment when sales fall
A good fit when
- Revenue is steady or growing and margins can carry the remittance share.
- The money funds something that raises revenue soon, such as inventory or marketing.
- You prefer payments that fall when sales fall over a fixed loan payment.
- No other sales-based financing is open.
Look elsewhere when
- Seasonal or storm-affected revenue that would stretch repayment far beyond plan.
- A lower-cost term loan or line is available for the same purpose.
- Taking a second agreement to repay the first.
- An offer from a provider that is not registered with the Texas OCCC.
| Monthly revenue | Monthly remittance | Months to repay |
|---|---|---|
| $100,000 | $6,000 | About 10.8 |
| $70,000 (a slower stretch) | $4,200 | About 15.5 |
Illustrative only, not an offer. The total repaid stays $65,000 in both cases; slower sales stretch the term, which lowers the effective annual cost but keeps the obligation open longer.
HB 700 in plain terms
Since September 1, 2025, Texas requires providers and brokers of commercial sales-based financing to register with the Office of Consumer Credit Commissioner, and providers must give a cost disclosure on specific offers under $1 million. Banks and credit unions are exempt.
What counts as sales-based
HB 700 covers financing repaid as a percentage of sales or revenue, including fixed payments that are reconciled back to a percentage of revenue. Revenue-based financing fits that definition.
Official sources (checked October 19, 2026): Texas HB 700 (2025), enrolled text.
What a funding specialist adds. Nowbiz models the remittance at your actual monthly revenue, including slow months, and compares it with term and line options. The provider sets eligibility and terms.
Prepare
Documents that settle the decision
- Twelve months of bank statements or processor reports
- Revenue by month, to show seasonality
- Current debt and any open advance balances
- The provider's Texas disclosure and registration details
- The written cap, remittance percentage, fees and early-payoff terms
Local funding context
Why Houston, TX businesses consider revenue-based financing
Houston is the largest city in Texas and the energy capital of the United States, with an economy that also includes the Texas Medical Center, the Port of Houston and Ship Channel, NASA’s Johnson Space Center and one of the most diverse restaurant and small-business communities in the country. Oilfield-services contractors, fabricators, industrial cleaners, trucking companies and engineering firms sell to large operators on long terms, while physician groups, home-health agencies and medical suppliers cluster around the Medical Center and its satellite hospital districts.
Houston has no zoning and abundant land, so commercial rents are moderate for a city its size outside the Galleria and downtown, and the state minimum wage tracks the federal rate, though skilled trades and oilfield work pay far above it. The operating risks are weather: hurricane season runs from June through November, flooding can close businesses for weeks, and summer heat compresses outdoor work into early mornings. Energy price swings ripple through every vendor on the Ship Channel and in the Energy Corridor, so deposit histories in Houston often show a cycle that lenders will ask about.
Revenue-based financing in local practice. In Houston, contractors rarely fit RBF because revenue is lumpy and invoiced rather than transactional; restaurants with strong delivery-platform and card revenue use a revenue share that eases during slow weeks. Manufacturers with direct-to-consumer channels use RBF for inventory; B2B manufacturers lean on factoring.
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 |
|---|---|---|
| Energy and oilfield services | Slow-paying operators and commodity swings | Factoring and receivables-backed lines |
| Healthcare practices | Medical Center growth and equipment upgrades | Equipment financing and term loans |
| Port and Ship Channel logistics | Trucks, trailers and yard equipment | Equipment financing and freight factoring |
| Restaurants and hospitality | Buildouts on Westheimer and Bellaire; storm interruptions | Working capital and lines of credit |
Local numbers
Houston business and SBA lending figures
The Census Bureau counted 111,215 business locations with paid employees in Harris County, which includes Houston, in its 2023 County Business Patterns, and 70% of them had fewer than 10 employees. Average annual payroll was $80,600 per employee across 2,182,164 jobs.
In the SBA's 2026 fiscal year (October 2025 through September 2026), 125 lenders approved 769 SBA 7(a) loans totaling $643.5 million for businesses in Harris County, an average of $837,000 per loan. By number of loans, the most active were Newtek Bank, National Association (77 loans); Zions Bancorporation, National Association (59 loans) and Northeast Bank (58 loans). Certified development companies approved 27 SBA 504 loans totaling $46.8 million for real-estate and equipment projects there; the most active was Capital Certified Development Corporation.
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 | Harris County |
|---|---|
| Employer business locations (2023) | 111,215 |
| Share with fewer than 10 employees | 70% |
| SBA 7(a) loans approved, FY2026 | 769 ($643.5 million) |
| Lenders making SBA 7(a) loans here, FY2026 | 125 |
| SBA 504 loans approved, FY2026 | 27 ($46.8 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 Houston.
Local rules and help
What to check in Texas before you apply
| Factor | Detail |
|---|---|
| State cost disclosure rule | HB 700 (since September 2025): standardized disclosures and registration for sales-based financing such as advances under $1 million; other products not covered |
| Where business liens are filed and searched | Texas Secretary of State (SOS UCC Portal) |
Checked October 15, 2026 against official sources: Texas Secretary of State (SOS UCC Portal). 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 Houston business with predictable, trackable revenue.
The full guide to revenue-based financing in Texas 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 $187,000 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 Houston, TX: at the stated inputs, $187,000 produces a total remittance between $205,700 and $280,500. An assumed collection period produces average payments between $17,142 and $23,375; 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 Houston, TX business
Illustrative revenue-based financing figures for $187,000 using hypothetical rate assumptions. Actual offers depend on underwriting and the funding partner.
$20,258 per month (assumed average) and $243,100 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 | $17,142 / month (assumed average) | $205,700 | 1.10x; assumed 12 months; actual payments vary with revenue |
| Midpoint | $20,258 / month (assumed average) | $243,100 | 1.30x; assumed 12 months; actual payments vary with revenue |
| Higher scenario input | $23,375 / month (assumed average) | $280,500 | 1.50x; assumed 12 months; actual payments vary with revenue |
Secure eligibility check
Fast Funding Review
Share a few details about your Houston 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 Houston, TX
Compare the products a Houston 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 Houston, TX: 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 Houston, TX?
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 Houston, TX?
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 hurricane season affect revenue-based financing for a Houston business?
Lenders read a Houston file with June to November in mind. A restaurant or retailer that lost weeks to a storm will show a dip in deposits that an underwriter expects, so an explanation and insurance documentation help. Contractors and restoration companies see the opposite: a surge of work and slow insurer payments, which suits receivables-based products and lines of credit more than a fixed daily debit.
Can a Houston contractor serving refinery turnarounds use revenue-based financing?
Yes. Turnaround contracts are large, short and paid on terms by plant owners and prime contractors, so payroll and equipment mobilization arrive before the first invoice clears. Lines of credit, factoring of prime-contractor invoices and equipment financing for lifts, welders and trucks are the usual structures; bring the contract, the schedule and the customer’s payment history.
Are Texas Medical Center practices and suppliers good candidates for revenue-based financing?
Generally. Physician practices, imaging centers, labs and home-health agencies near the Medical Center bill insurers and Medicare on predictable but slow cycles, which supports receivables-backed lines and factoring, while equipment and buildout requests are financed against the asset. Vendors and service companies invoicing the hospital systems have creditworthy but slow receivables that factors know well.