Sales-Based Repayment Explained

Traditional business loans require fixed monthly payments regardless of how your business is performing. This creates stress during slow periods and limits growth during good ones.

How Sales-Based Repayment Works

With RiseFi's revenue-based financing, repayment is tied directly to your daily sales. A fixed percentage — typically between 5% and 15% — is automatically deducted from each day's revenue.

Example

• Daily sales: $10,000
• Repayment rate: 10%
• Daily repayment: $1,000

When sales dip to $5,000, your repayment drops to $500. When sales surge to $20,000, repayment increases to $2,000. The system adjusts automatically.

Why This Matters

For Merchants

• No risk of missing a payment during slow periods
• Cash flow stays healthy regardless of seasonality
• Repayment accelerates naturally when business is strong

For Platforms

• Lower default rates compared to fixed-payment products
• Happier merchants with better retention
• Automated reconciliation reduces operational overhead

For Lenders

• Built-in risk mitigation through performance-linked repayment
• Real-time visibility into merchant health
• Higher recovery rates on the portfolio

The Bottom Line

Sales-based repayment aligns the interests of merchants, platforms, and lenders. Everyone wins when the merchant's business grows. That's the core philosophy behind RiseFi's approach to embedded financing.