Apply Now arrow

Revenue-Based Financing to Cover Business Growth & Expenses

Flexible financing up to $2M+ to cover daily operational needs.

working Capital hero

Revenue-Based Financing Made Simple

Loans Range Support

$25K-$2M+

Average loan amount

$92,643*

Prequalify in

60 Seconds**

Tailored-Support

Dedicated Funding Specialists

*Estimates based on all revenue-based financing transactions January 2023 - December 2023.

**Create your Biz2Credit account to get an initial estimate of how much your business could receive.

Funding Made Simple: Pay as You Earn.

Our flexible repayment program is tailored to your business's revenue cycle.

This type of financing gets your business the support and working capital you need fast.

Some popular reasons to seek revenue-based financing are:

What is Revenue-Based Financing?

Revenue-based financing (RBF) is a type of flexible funding option where repayment is linked to your business revenue. There are no fixed terms. Your payment amount is calculated based on a percentage of estimated future receivables. It is ideal for companies seeking flexible payment arrangements. Businesses often seek RBF to:

  • Expand Operations: Open new locations or boost production.
  • Drive Growth: Fund marketing and advertising campaigns.
  • Restock Quickly: Manage inventory to meet demand.
  • Build Your Team: Hire and train for growing needs.

Understanding Revenue-Based Financing

  • Revenue-based financing (RBF) is a type of flexible funding option where repayment is linked to your business revenue.
  • There are no fixed terms. Your payment amount is calculated based on a percentage of estimated future receivables.
  • It is ideal for companies seeking flexible payment arrangements.

Pros of Revenue-Based Funding

  • Flexibility: Repayments are linked to your business revenue.
  • Quick Access to Funds: Get approved fast to tackle pressing business needs.
  • No Fixed Terms: Focus on growth, not rigid repayment schedules.

Important Requirements

  • Higher Costs: Flexible payments may come with higher overall costs compared to traditional loans.
  • Revenue Dependency: Slower months mean slower repayments, which could extend the repayment timeline.
  • Eligibility Requirements: Requires steady, recurring revenue for approval.

Flexible Revenue-Based Funding for Modern Businesses

Biz2Credit offers custom repayment options for maximum flexibility, with dedicated specialists to help you succeed.

Trusted by Thousands of Small Business Owners in America.**

Simply because we get what you go through to build a business you believe in.

**Disclaimer: All stories are real, as told by real business owners. Customers do not receive monetary compensation for telling their stories.

Maryam Zadeh

"We were growing so fast, but we didn't have the working capital we needed.

Biz2Credit was so great because they were there for us when nobody else was."

Maryam Zadeh

Owner of HIIT BOX
Customer since 2018

Is Revenue-Based Financing Right for Your Business?

Simple requirements to unlock revenue-based financing

  • annualRevenue

    Steady Revenue
    Annual revenue of $250,000 or more.

  • credtScore

    Credit Score
    575+

  • monthlyBusiness

    Time in Business
    At least 12 months in operations

How to Apply for Revenue-Based Financing

Simple steps to secure revenue-based funding.

Revenue-Based Financing Articles

Frequently Asked Questions

Why choose revenue-based financing over traditional loans?

There are plenty of benefits of using revenue-based financing for raising capital compared to traditional loans. There is flexibility in repayment as funding is dependent upon the company’s revenue. So, if a business performs better, the repayment rate increases but if the performance is down, then the repayment amount would be low too. Moreover, the approval and funding processes of revenue-based financing is typically quicker than other types of financing. And unlike traditional loans, revenue-based financing usually doesn't usually need personal guarantees or collateral. And there is no need for equity dilution. All these and more make revenue-based financing a popular option with small businesses.

How does revenue-based financing impact my credit?

Revenue-based financing can have several impacts on your credit. Since this loan is intertwined with your business’s revenue, and not personal credit, it won’t affect your personal credit score. But in case of defaults, your business’s credit profile will take the brunt of it. So, make sure you do timely payments.

What happens if my sales drop and I can't make a payment?

Since revenue-based financing is tied to your business revenue, it means payments are adjusted based on the revenue. In a nutshell, if your sales drop, your payments will decrease proportionately, which will help you navigate those slow months of sales. But if you can’t make the payment at all, it might put you at risk of getting any loans in the future and you will be liable for penalties by the lender.

What types of businesses benefit most from revenue-based financing?

A lot of businesses prefer opting for revenue-based financing because of its flexible repayment structure and the fact that it is not based on equity. But this type of loan is best suited for businesses with fluctuating revenues. These can include seasonal businesses, e-commerce, SaaS, subscription-based businesses or startups.

What happens if my revenue fluctuates?

You don’t have to worry. This is where the flexible repayment structure of revenue-based financing comes in. If your business income increases, the repayment will proportionately increase. Same goes if your income decreases, your payment amount will decrease accordingly. For example, if you have taken a loan of $50000 against 10% of your monthly sales and your revenue in the 1st month is $20000 then your repayment amount will be $2000. If you make $40000 in the second month, the repayment amount will be $4000 but if your revenue drops in the next month to $10000 then you will have to pay $1000. This continues until you have completely paid the loan in full.
x
”Your browser does not support the images displayed on this website. Please try to access the site from the latest version of Google Chrome, Safari, Microsoft Edge or Mozilla Firefox”