Commercial Real Estate vs. Revenue-Based Financing: Compare Business Funding
CRE loans vs. revenue-based financing — long-term property financing compared to flexible revenue-tied growth capital.
Commercial Real Estate Loan: Commercial real estate loans finance the purchase, renovation, or refinance of income-producing or owner-occupied commercial property. Revenue-Based Financing: Revenue-based financing provides capital in exchange for a fixed percentage of future monthly revenue until a set repayment cap is reached.
Commercial Real Estate Loan vs. Revenue-Based Financing — side by side
| Commercial Real Estate Loan | Revenue-Based Financing | |
|---|---|---|
| Typical amount | $250,000 – $25,000,000 | $25,000 – $1,000,000 |
| Typical term | 5 – 30 years | 6 – 36 months |
| Rate | 6% – 12% APR | 6% – 12% of monthly revenue |
| Minimum time in business | 2 years | 6 months |
| Minimum credit score | 650+ | 550+ |
Which is right for your business?
- Commercial Real Estate Loan tends to fit best when you need purchase or renovation.
- Revenue-Based Financing tends to fit best when you need saas growth or e-commerce inventory.
Frequently asked questions
Is RBF or a CRE cash-out refinance cheaper?
A CRE cash-out refinance is almost always cheaper in total cost (5–9% vs. 20–50% effective cost of RBF). But the refinance takes 30–60 days and requires the property to qualify. RBF funds in days with minimal documentation — speed has a price.
