Revenue-based financing: What is it, and who is it for?

A supplier offers you a batch of goods at half price – if you pay today. The perfect spot on the right street suddenly opens up. A campaign could fill the shop, but only if you buy in bulk and front the costs yourself first. Opportunities rarely show up when your account is flush.

Capital has gotten more expensive across the board – especially for smaller and newer businesses. The OECD's Financing SMEs and Entrepreneurs 2026* shows that interest rates on business loans remain at historically high levels. A conventional business loan is also built for larger, long-term investments – not for the smaller, urgent need that comes up when an opportunity knocks.

That's where revenue-based financing comes in. It's a fast-growing model: globally, the market is expected to climb from $9.8 billion in 2025 to nearly $16 billion in 2026. In Denmark it's still relatively new – and for many café, retail, and service owners, it could be exactly the tool they've been missing.

What is revenue-based financing?

Revenue-based financing is a model where you receive a lump sum upfront and pay it back as a fixed percentage of your daily revenue. There's no interest rate. Instead, you pay one fixed fee that you know from day one.

It differs from a conventional business loan in three ways. You don't pay interest – just one fee agreed upfront. You don't make fixed monthly payments – you pay a share of what you actually sell. And you know the total amount you owe before you sign anything.

The model is built for businesses that take card payments and have revenue that fluctuates day to day and season to season.

How repayment works

This is where revenue-based financing really stands apart. Repayment follows your revenue – not the calendar.

• The money lands directly in your business account, typically fast after approval.

• A small, fixed percentage of your daily card sales goes automatically toward repayment.

• Busy day? You pay more. Quiet day? You pay less. The pace follows the business.

• The total amount is fixed from the start – one fee, no interest, no hidden costs.

• No collateral, no personal guarantee. The assessment is based on your card sales – not a lien on your car, home, or any other assets.

In practice, this means the financing pays itself off as the money comes in. You're never stuck making a fixed payment in a slow month. And you don't need to put up any security – the whole thing is based on the business selling.

A worked example

Sofie runs a café. Summer is coming, and she wants to add more tables to the terrace and bring in an extra staff member for the season – an investment of DKK 100,000.

Instead of a loan with interest and fixed instalments, she goes with revenue-based financing:

• She receives DKK 100,000.

• On top of that, one fixed fee is added – in this example, DKK 10,000. From day one, Sofie knows exactly what she owes: DKK 110,000. No interest.

• Each day, a fixed share of her card sales goes toward repayment – in this case, 15%.

• On a busy Saturday with DKK 8,000 in card sales, she pays DKK 1,200. On a quiet Tuesday with DKK 2,000, she pays DKK 300.

The result: Sofie pays the most when business is good – and the least when it's quiet. The financing moves with the business.

This example is for illustration purposes. Your actual offer will depend on your turnover and history.

Who is revenue-based financing suited to?

The model works for businesses that sell regularly and take card payments. That typically means:

• Cafés, restaurants, and bars

• Retail and specialist shops

• Hair salons, clinics, and other service businesses

• Webshops with a steady sales flow

To qualify, your business needs to meet a few basic criteria: you take card payments, you have at least three months of trading history, and your funding need is somewhere in the range of DKK 0–500,000. These requirements exist because the model is built around your card sales – it's your revenue that determines both the amount and drives repayment.

Common uses include stocking up ahead of peak season, renovating or fitting out new premises, bringing on extra staff, or pushing marketing spend when the momentum is there.

Revenue-based financing or a business loan – which should you choose?

It depends on the amount and what it's for.

At kompasbank, we offer business loans from DKK 500,000 to DKK 25 million, business leasing, and overdraft facilities. Those products are built for larger investments, equipment, and longer time horizons.

If your need is smaller – and you take card payments – revenue-based financing is often the better fit. That's why kompasbank has partnered with YouLend, who offer exactly that solution for micro and small businesses. When your need doesn't match our own products, we point you in the right direction rather than turning you away with a no.

When is revenue-based financing not the right choice?

Revenue-based financing isn't the answer to everything – and it's not meant to be.

• If you don't take card payments, this model won't work for you right now. A business loan, leasing, or overdraft is the way to go.

• If you need more than DKK 500,000, a business loan is usually the right call.

• If you're buying machinery, vehicles, or equipment, business leasing will typically free up more liquidity.

• For large, long-term investments, a loan or leasing will generally serve you better.

Also worth keeping in mind: revenue-based financing is fast and flexible, but if you convert the fixed fee into an annualised cost, it can work out higher than a conventional business loan. For a short, specific need, the speed and flexibility usually make it worthwhile. For big, long-term investments, they rarely do.

The short version: use revenue-based financing when you have a quick, short-term need and steady revenue to repay against. For everything bigger, kompasbank's own products are the right fit.

Get started

Does your business take card payments and need flexible financing of up to DKK 500,000? Revenue-based financing via YouLend might be exactly what you're looking for. 🚀

Apply for financing via YouLend.

Not sure which solution is right for you, or need something bigger? Book a meeting with kompasbank and we'll find the right match.

Sources: OECD