Invoice Finance vs Revenue-Based Finance — Which Is Better?
Invoice finance advances against specific unpaid invoices with costs of 0.5-3%. Revenue-based finance provides a lump sum repaid as a fixed percentage of monthly revenue, typically costing 6-12% of the total amount. Invoice finance is cheaper for B2B businesses with invoices. Revenue-based finance suits subscription and recurring revenue businesses.
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Oliver Mackman
Director, Market Invoice
Oliver leads Market Invoice's editorial and comparison research. With a background in UK commercial finance, he oversees provider analysis, rate verification, and industry reporting across all verticals.
Last reviewed: 6 April 2026