RBF · New York City, NY
Revenue-Based Financing in New York City, NY
Revenue-based financing is repaid as a share of revenue until a set total is paid. In New York, non-bank providers must give a disclosure with an estimated APR, which depends on how fast they expect you to repay. Model your own slow months to see how long it really takes.
Check business eligibilityFunding specialists, not a lender. No approval guarantee.
Updated October 30, 2026
Decision guide
NYC revenue-based financing: model the slow months
A good fit when
- Steady or growing revenue that can carry the remittance share.
- A use that raises revenue soon, such as inventory or marketing.
- Payments that fall when sales fall.
- No other revenue-based agreement open.
Look elsewhere when
- Seasonal revenue that would stretch repayment far beyond plan.
- A cheaper term loan or line available for the same use.
- Taking a second agreement to repay the first.
- An offer without New York's standardized disclosure.
| Monthly revenue | Monthly remittance | Months to repay |
|---|---|---|
| $150,000 | $12,000 | About 9.0 |
| $110,000 | $8,800 | About 12.3 |
Illustrative only, not an offer. The disclosed APR assumes the provider's estimate of your revenue; ask what estimate they used.
The estimate behind the APR
For sales-based financing, the disclosed APR depends on the provider's estimate of how quickly you will repay. If your revenue is lower than their estimate, repayment takes longer and the effective annual cost is lower, but the total stays the same.
Early payoff
Ask whether paying off early reduces the total owed. Many agreements keep the full cap.
Official sources (checked October 19, 2026): New York Financial Services Law, Article 8 (Commercial Finance Disclosure Law).
What a funding specialist adds. Nowbiz models the remittance at your actual revenue and compares it with term and line options on total cost. The provider sets eligibility and terms.
Prepare
Documents that settle the decision
- Twelve months of bank statements or processor reports
- Revenue by month
- Current debt and open advance balances
- The New York disclosure for each offer
- The written cap, share, fees and early-payoff terms
Local funding context
Why New York City, NY businesses consider revenue-based financing
New York City is the densest small-business market in the country: tens of thousands of restaurants, bodegas, salons, boutiques, contractors, medical practices, professional firms, garment and food producers and e-commerce brands operating across five boroughs. Manhattan concentrates professional services, hospitality and retail; Brooklyn and Queens add manufacturing, food production, logistics near the airports and immigrant-owned businesses in every trade; the Bronx and Staten Island add wholesale food distribution, contractors and home services.
Operating costs are the highest in the nation. Retail and restaurant rents in prime Manhattan and Brooklyn corridors dwarf national averages, the city sits in New York’s top minimum-wage tier, and commercial rent tax applies to larger Manhattan leases below 96th Street. Businesses also navigate city-level licensing, health inspections and paid-leave rules. Seasonality is driven by tourism peaks in summer and December and a slow January and February for dining and retail.
Revenue-based financing in local practice. In New York City, contractors rarely fit RBF because revenue is lumpy and invoiced rather than transactional; e-commerce brands are the original RBF customers, funding inventory and ads against marketplace and Shopify data. Restaurants with strong delivery-platform and card revenue use a revenue share that eases during slow weeks.
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 |
|---|---|---|
| Retail and e-commerce | Holiday inventory, marketing | Lines of credit and revenue-based financing |
Local numbers
New York City business and SBA lending figures
The Census Bureau counted 235,767 business locations with paid employees in New York City, in its 2023 County Business Patterns, and 79% of them had fewer than 10 employees. Average annual payroll was $106,300 per employee across 4,085,556 jobs.
In the SBA's 2026 fiscal year (October 2025 through September 2026), 103 lenders approved 1,205 SBA 7(a) loans totaling $567.8 million for businesses in the five boroughs, an average of $471,000 per loan. By number of loans, the most active were TD Bank, National Association (220 loans); Newtek Bank, National Association (148 loans) and Northeast Bank (102 loans). Certified development companies approved 43 SBA 504 loans totaling $74.3 million for real-estate and equipment projects there; the most active was Trenton Business Assistance 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 | New York City (its five counties) |
|---|---|
| Employer business locations (2023) | 235,767 |
| Share with fewer than 10 employees | 79% |
| SBA 7(a) loans approved, FY2026 | 1,205 ($567.8 million) |
| Lenders making SBA 7(a) loans here, FY2026 | 103 |
| SBA 504 loans approved, FY2026 | 43 ($74.3 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 New York City.
Local rules and help
What to check in New York before you apply
| Factor | Detail |
|---|---|
| State cost disclosure rule | Commercial Finance Disclosure Law: standardized disclosures including an estimated APR on most financing up to $2.5 million from non-bank providers (banks, true leases and real-estate-secured loans are exempt) |
| Where business liens are filed and searched | New York Department of State, Division of Corporations, State Records and UCC |
Checked October 15, 2026 against official sources: New York Department of State, Division of Corporations, State Records and UCC. 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 New York City business with predictable, trackable revenue.
The full guide to revenue-based financing in New York 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 $246,000 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 New York City, NY: at the stated inputs, $246,000 produces a total remittance between $270,600 and $369,000. An assumed collection period produces average payments between $22,550 and $30,750; 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 New York City, NY business
Illustrative revenue-based financing figures for $246,000 using hypothetical rate assumptions. Actual offers depend on underwriting and the funding partner.
$26,650 per month (assumed average) and $319,800 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 | $22,550 / month (assumed average) | $270,600 | 1.10x; assumed 12 months; actual payments vary with revenue |
| Midpoint | $26,650 / month (assumed average) | $319,800 | 1.30x; assumed 12 months; actual payments vary with revenue |
| Higher scenario input | $30,750 / month (assumed average) | $369,000 | 1.50x; assumed 12 months; actual payments vary with revenue |
Secure eligibility check
Fast Funding Review
Share a few details about your New York City 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 New York City, NY
Compare the products a New York City 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 New York City, NY: 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 New York City, NY?
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 New York City, NY?
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.
Is revenue-based financing in New York City different from the rest of the state?
The product is the same, but city operating costs change what fits. Lenders see higher rent-to-revenue ratios and size offers accordingly, and daily-remittance products carry more risk in a business with a slow winter and high fixed costs. The Commercial Finance Disclosure Law applies citywide.
How do city-agency and MTA contracts affect revenue-based financing for a New York City vendor?
They are high-quality but slow receivables, frequently 60 to 90 days or more. Factors and receivables-based lenders like them, and any fixed-payment revenue-based financing should be scheduled against realistic city payment dates rather than invoice dates.
Where can a New York City owner get free help preparing for revenue-based financing?
The SBA’s New York district office, NYC Small Business Services and SBDCs at Baruch, Pace, LaGuardia and other campuses offer free counselling and loan-readiness help. They do not replace a private review but can sharpen the file before it goes to funding partners.