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.

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 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.

Apply for Revenue-Based Financing for Your Needs

Q: 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.

Revenue-Based Financing Made Simple

$25K-$2M+

Financing Amounts Range

$131,855*

Average Financing Amount

60 Seconds**

Prequalify In

Tailored Support

Dedicated Funding Specialists

*Estimates based on all revenue-based financing transactions January 2025 - December 2025.

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

How Does Revenue-Based Financing From Biz2Credit Work?

In a revenue-based financing (sometimes referred to in the industry as royalty based financing) arrangement with Biz2Credit, you get quick funding (if approved) with a uniquely flexible repayment plan. Revenue-based financing is not a traditional bank loan or line of credit - you don't pay interest on the borrowed funds. Instead, you get a lump sum of money in exchange for a percentage of your estimated future receivables paid back on a periodic basis plus a plus fees until the contract is fulfilled.

In a revenue-based financing agreement with Biz2Credit, the lump sum of money you get can be used for many business purposes, which creates a simple, streamlined process for you to fund any opportunities or challenges that your business will face, such as funding growth opportunities, make equipment purchases, or maintaining cash flow during the offseason.

What are the Benefits of Revenue-Based Financing With Biz2Credit?

One of the aspects of revenue-based financing that appeals to small business owners is its flexibility in terms of repayments. Borrowers pay a percentage of their future sales on periodic basis. The percentage of revenue that you must pay stays the same, but if you enter into a slow period in terms of sales, your payments decrease, giving you flexibility.

While revenue-based financing is generally more expensive than traditional debt financing such as a term loan or business line of credit, it does offer many benefits to small businesses:

Revenue-based financing is not equity financing or venture capital – it allows merchants to access capital to fund whatever business needs they have without giving up ownership in their business.
Revenue-based financing offers a flexible repayment plan. It’s not a loan that requires austere, fixed monthly payment schedules – the repayment structure with this type of financing are cash flow friendly. The percentage of your future revenue doesn’t change, but when challenges come up unexpectedly and your sales slowdown for a period, your payments decrease since the repayment schedule is tied to your sales. For many everyday small business owners, this is one of the most appealing parts of revenue-based financing.
When applying, your credit score does not have to be as high as with other forms of financing because of the repayment structure . Instead, the strength of your sales history is weighed heavily. In short, when applying with Biz2Credit, we look more heavily on your actual revenue, not just your balance sheet.
With revenue-based financing, the specific ways you intend to use the capital you are borrowing is not considered as heavily as it is with some other types of financing. Merchants can work with their cash for any business reason.
Borrowers get funding quickly in a revenue-based financing agreement, unlike other types of financing.

In the past, many have scoffed at revenue-based financing as being too expensive and complex compared to more traditional financing tools. Not anymore. Revenue-based financing is quickly being recognized as an advantageous form of financing by thousands of small businesses globally.

Why Choose Revenue-Based Financing With Biz2Credit?

Biz2Credit is one of the premier financing platforms in the revenue-based financing space because we offer many advantages over many of our competitors:

Biz2Credit’s upper limit on lending amounts in revenue-based financing is higher than many competitors. While many firms offer upper limits of $5 million, we have, on rare occasions, engaged in contracts of up to $10 million.
Biz2Credit offers flexible repayment terms. Some lenders demand daily repayments in their contracts, while we offer various repayment options, giving you more flexibility when incorporating the repayment schedule into your budget.
Biz2Credit requires a minimum 575 credit score, a minimum of one year in business and a minimum of $250,000 in annual revenue to apply, which are lower requirements than some competitors in the revenue-based financing space.
An application with Biz2Credit can be completed online in minutes, far shorter than traditional types of financing.
Biz2Credit has nearly 40 well-trained and knowledgeable small business experts globally - including a dozen in the U.S. - who can work closely with you on structuring solutions that work for your business. We will analyze your needs and construct a revenue-based financing strategy that can help your small business thrive and grow.

Why Would Businesses Need Revenue-based Financing?

If revenue-based financing is more expensive than more traditional types of debt financing, why would small businesses use it? The answer is that it is a structured solution that can be ideal for various types of situations that small businesses face.

Revenue-based financing can be a quick, nimble way to fund many of your business needs without the hassle of filling out long applications and won’t require the strict, monthly repayment plan of a term loan or the possible balloon payments that may be required in some business lines of credit. As more small businesses are finding out, it’s a smart way to finance sudden growth costs or stabilize your cash flow.

Why Biz2Credit?

Time: faster decisions and funding through automation + optimized workflows
Scale: built to handle high volumes without losing responsiveness
End-to-end management: one platform from application to servicing—fewer handoffs
Higher match rate: multiple products + pathways improve approval outcomes
Transparency: real-time status visibility; fewer black-box steps

How do I Apply for Revenue-Based Financing With Biz2Credit?

Biz2Credit offers a simple application process for small business owners who are seeking revenue-based financing. The steps are:

Create Your Biz2Credit Account

Get
Pre-Qualified

See your pre-qualified offers tailored for your business.

Submit Your Application

By completing a short form about your funding needs.

Receive Your Funding Decision

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

Revenue Based Financing Minimum Requirements

Here are the minimum requirements for revenue-based financing with Biz2Credit:

$100,000 or more

in consistent annual revenue
575 or higher

Credit score
1 year or more in business

Time in Business Operations

Getting approved for revenue-based financing can be simpler than securing a traditional bank loan. If you have a strong sales history, you may have a strong chance of approval.

How to Strengthen Your
Revenue-Based Financing Application

Here are a few tips to strengthen your application with revenue based financing companies:

Show Consistent Revenue
Organize Your Financial Records
Be Sure To Highlight Your Business's Profit Margins
Demonstrate Market Demand

Lenders want to see steady sales performance over time from applicants. Monthly or quarterly gross revenue trends will demonstrate your business's stability and growth potential.

Keep up-to-date financial statements. Clean, organized records can make the underwriting process smoother.

Even if revenue fluctuates, showing strong gross margins assures lenders that you can handle repayments.

Show evidence that your products or services have a strong, sustainable market. Include sales data or trends proving your business is poised for growth.

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.

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.

After reviewing offers from other lenders, the offer from Biz2Credit really stood out.

Tiffany Jackson

Owner

TW Tax and Credit Services

I have plans to make Kathis & Kababs a franchise," Vasu shared, "and partnering with Biz2Credit has given me hope for that future.

Vasu Dhall

Owner

Kathis & Kababs Restaurant

Biz2Credit has been our main lender over the years we have been in business. We have such a history now, through ups and downs, I feel like (Biz2Credit) has always been there for us.

Sarita Ekya

Owner

S'Mac (Sarita's Mac & Cheese)

Frequently Asked Questions

1. What is revenue-based financing?

Revenue-based financing is a funding model where businesses receive capital in exchange for a fixed percentage of their estimated future receivables. Unlike traditional loans, there are no fixed monthly payments or interest rates. As you're paying back what is owed, repayment amounts will fluctuate based on the revenue your business generates.

2. How does repayment work in revenue-based financing?

In revenue-based financing, payments are based on a percentage of your future revenue. With this type of financing, if your sales drop the amount of your payment will be adjusted to reflect the change in revenue. The total repayment is based on an agreed upon factor rate.

3. Do I give up equity with revenue-based financing?

No-revenue-based financing doesn't involve business equity. You are using future business income to make investments today into your business.

4. How quickly can I get funding with revenue-based financing?

Revenue-based financing can offer fast funding decisions.

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

Revenue-based financing can work best for businesses with steady, recurring revenue streams. This type of financing can help eCommerce stores, subscription-based services, SaaS companies, and any business that can reliably project future sales. It's ideal for growth-focused companies that want flexible funding without giving up equity.