Revenue-Based Financing to Cover Business Growth & Expenses

Q: Why choose revenue-based financing over traditional loans?

Revenue-based financing offers flexible repayment based on a company's revenue, with faster approval and no need for personal guarantees, collateral, or equity dilution. This makes it a popular choice for small businesses over traditional loans.

Q: What happens if my revenue fluctuates?

With revenue-based financing, repayments adjust based on your business income. If your revenue increases, repayments rise, and if it decreases, payments reduce accordingly. For example, if you borrow $50,000 at 10% of monthly sales, a $20,000 revenue would mean a $2,000 repayment. If revenue rises to $40,000, the payment would be $4,000; if it drops to $10,000, the repayment would be $1,000. This continues until the loan is fully repaid.

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

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Revenue-Based Financing Made Simple ⓘ

$25K–$2M+

Financing Amounts Range

$110,000*

Average Financing Amount

60 Seconds**

Prequalify In

Tailored Support

Dedicated Funding Specialists

*Estimates based on all revenue-based financing transactions January 2024 – December 2024.

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

Understanding Revenue-Based Financing

Revenue-based financing (RBF) is a funding solution where businesses receive capital in exchange for a percentage of their estimated future receivables. It’s not a traditional loan, which means there’s no fixed repayment amount or schedule. Instead, repayments depend on your future sales.

If your revenue dips one month or rises the next, your repayment will adjust accordingly. That’s what makes revenue-based financing appealing to growing companies with fluctuating income. Unlike equity financing, you don’t give up ownership or any part of your company. And unlike rigid loans, there’s no pressure to meet high monthly obligations.

This makes revenue-based funding ideal for businesses that want flexibility without sacrificing control.

Why Choose Revenue-Based Financing

Revenue-based financing offers business owners the flexibility they need without the burden of fixed repayments or equity loss. If your company is experiencing growth or fluctuating sales cycles, this option can provide the right balance of support and control.

Here's why more businesses are turning to revenue-based financing as their go-to solution:

Growth-Friendly Terms

Whether you're hiring staff, buying inventory, or expanding locations, the structure of revenue-based funding gives you room to grow. Since repayments match your revenue flow, you’re not overextended during leaner months. This makes it one of the best revenue-based financing options for fast-growing or fast-changing businesses.

Flexible Repayments

One of the biggest advantages of revenue-based financing is that payments automatically adjust based on your monthly revenue. This keeps cash flow predictable and frees you from the stress of missing fixed loan instalments. It's especially helpful for businesses with variable monthly sales. Unlike traditional debt, this funding structure adjusts with your business cycle.

No Equity Dilution

With revenue-based business funding, you don’t trade ownership for capital. Unlike venture funding, you retain full control over your business decisions. This makes it an attractive option for entrepreneurs who want growth capital without giving up a stake in their company. Maintaining 100% ownership means you stay in the driver’s seat while still gaining access to critical business funds.

Faster Access to Funds

Traditional loans often involve weeks of waiting and back-and-forth. With revenue-based financing, the process moves quickly, sometimes within a few days. By analyzing your real-time revenue data or sales reports, platforms can assess your eligibility and move fast. This speed is critical for businesses facing sudden opportunities or urgent needs.

Minimal Collateral

Many revenue-based financing companies don’t require hard collateral like property or inventory. That’s a game-changer for businesses that don’t have physical assets to pledge. Your future income stream becomes the basis for trust.

Simple Qualification

If you've been denied traditional financing due to credit history, revenue-based financing can still be within reach. The structure focuses more on actual performance (your current and projected revenue) than on your FICO score. This is not to say FICO score doesn’t play a role but it is a combination of both the aspects that determine whether you can secure the financing or not. It’s a more inclusive way to fund businesses with real potential.

How to Apply for Revenue-Based Financing

Create Your Biz2Credit Account

Get
Pre-Qualified

See your pre-qualified offers tailored for your business.

Submit Your Application

Complete a short form about your funding needs.

Receive Funding Decision

Once reviewed, we'll let you know your application status.

Is Revenue-Based Financing Right for Your Business?

Simple requirements to unlock revenue-based financing

$250,000 or more

Steady Annual Revenue
575+

Credit Score
At least 12 months

Time in Business Operations

What You Need to Apply for a
Revenue-Based Financing

Qualifying for a business revenue loan is generally simpler than for traditional loans, but certain criteria still matter. If
you're earning consistent revenue and can show clear sales performance, you’re already halfway there.
Here’s what most platforms look for:

Consistent Monthly Revenue

Stability is key. Most providers of revenue-based financing want to see steady sales coming in month after month. A predictable revenue stream, especially if it’s recurring or subscription-based, signals that your business can handle gradual repayments. It’s not about how much you make, but how regularly you earn. At Biz2Credit, we look for at least $250,000 and more in annual revenue.

A Minimum of 575+ Credit Score

Biz2Credit accepts a minimum credit score of 575. This is very important as any application with a score below this one will not get accepted.

At Least 12 Months in Operation

Your business should have some operational history. Biz2Credit accepts applicants with at least 12 months or more in operation. This track record proves your staying power and gives confidence that your revenue pattern is reliable. Longer tenure may improve odds of positive funding decision.

Smarter Ways to Use Revenue-Based Financing

Revenue-based financing is more than just a funding method. It’s a tool that helps fuel targeted growth. With flexible repayments, you can invest where it matters most without stressing about fixed instalments.
Here’s how to put your funds to work:

Inventory Purchases

Seasonal spikes? Sudden demand? Revenue-based financing can help you stock up without draining your reserves. Whether you're in retail, wholesale, or ecommerce, timely inventory means better margins and more sales.

Marketing Campaigns

Growth often begins with visibility. Revenue-based financing give you the freedom to launch new campaigns, test creative strategies, or scale up digital ads. You can grow your customer base faster while keeping repayment aligned with your marketing results. It’s ideal for businesses looking to scale smartly.

Team Expansion

Hiring talent is a critical step in scaling. With revenue-based financing, you can bring in skilled staff like sales reps, engineers, and support teams without delaying payroll or dipping into working capital.

Technology Upgrades

Outdated tools slow you down. Whether you need new software, better hardware, or automation systems, revenue-based financing lets you invest today and pay back gradually. This helps you stay competitive without straining your current operating cash.

Product Development

Launching a new service or product? R&D can be expensive, but revenue-based financing allows you to experiment and iterate without pressure.

How to Strengthen Your
Revenue-Based Financing Application

Getting approved for revenue-based financing is simpler than traditional loans but a few smart moves can boost your odds. Here’s how you can position your business:

Show Consistent, Reliable Revenue
Use Digital Payment and Accounting Tools
Separate Business and Personal Accounts
Highlight Growth Opportunities
Be Transparent and Ready

Most revenue-based financing companies want to see stable income trends. If you’re seeing dips, take steps to even out your cash flow before applying. Recurring payments or repeat customer sales go a long way in building confidence.

Clean data is critical. Sync your POS system, ecommerce platform, or accounting software to demonstrate transparency. These systems offer easy-to-verify sales records that support your eligibility for revenue-based loans.

Keep business transactions separate. A well-managed, active business account makes your numbers easier to track and helps with faster decisions. It also proves that your revenue streams are legit and tied to real operations.

If your revenue is trending up, make that clear in your application. Platforms offering revenue-based business financing want to see that your sales are not only steady but improving. Momentum may increase approval chances.

Have your bank statements, merchant processor data, and other documentation ready to go. The easier you make it to review your business, the faster your revenue-based financing decision will be.

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.

We are so grateful for the opportunity to be able to do what we love during the worst of times and Biz2Credit was the catalyst for that.

— Troy and Raquel Binns* Owners of Binns Martial Arts, Customer Since 2020

We had always dreamt of having a banquet hall, and it came true after the financing from Biz2Credit. We would recommend Biz2Credit 100% without fail, no questions about it.

— Vicky Vij and Raja Jhanjee* Owners of Bukhara Grill, Customer Since 2008

We had a wonderful experience working with Biz2Credit and we wouldn't hesitate to work with them again.

— Antonio Garcia, Jr.* Director of Business Operations

Biz2credit did the application process with us. It was very easy. We were able to continue with the operation. I was very happy with the experience.

— Phil Quilter* Owner of Taj Lounge, Customer Since 2010

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

It was like talking to a family member. It was that comfortable. I would definitely recommend Biz2Credit to other people.

— Caesar and Sarita* Owners of S’MAC, Customers Since 2013

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

Revenue-Based Financing Articles

FROM THE KNOWLEDGE CENTER*

*This information is provided for general information only ⓘ, does not constitute financial advice, and does not necessarily describe Biz2Credit commercial financing products.

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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 funding 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 that your business brings in. With this type of financing, if your sales drop the amount of your payment will be adjusted to reflect the change in revenue. These revenue-based payments can help you navigate those slow months of sales. However, in revenue-based financing you are still responsible for maintaining the operation of your business and making all efforts to continue making payments.

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 financing 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?

This is where the flexible repayment structure of revenue-based financing comes in. Revenue-Based Financing agreements (Receivables Sale Agreements or RSAs) are repaid from an agreed percentage of your business receipts (Receivables) - and only from your business Receivables - until the agreed sale price (Amount Sold) is reached. You also have a right of true-up/reconciliation to ensure that payments are made only from Receivables. In case your revenues change, and if revenue drops and can be demonstrated to be lower, the amount of payment you will make will then adjust accordingly.