Apply Now arrow

Revenue-Based Financing to accelerate your business growth

Fast and flexible financing for your business that's easy and reliable.

working Capital hero

Revenue-Based Financing Overview

Prequalify in

60 Seconds

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

Average Funding Amount:

$92,643*

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

Flexible financing that works for your business

Our revenue-based financing product is designed for small businesses.

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

Some popular reasons to seek revenue-based financing are:

Learn About Revenue-Based Financing

Revenue-based financing is not a loan, so there is no fixed term or interest rate. Payments are flexible based on business performance, with a right to reconcile against actual business receipts.

From One Entrepreneur to Another: We Get You

We understand what's behind building a business you believe in.

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?

Most customers get started with:

  • annualRevenue

    Annual Revenue Greater than $250k

  • credtScore

    575 credit
    score or above

  • monthlyBusiness

    At least 6 months in business

How to Apply for Revenue-Based Financing

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”