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Revenue-Based Financing to accelerate your business growth

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.

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

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:

Grow your Business
Cover one-time business expenses
Hire staff
Buy equipment
Pay down operational costs
Purchase inventory
Expand your workplace

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.

Repayment from business receipts

Enjoy predictability and flexibility with daily, weekly or biweekly payments from your business receipts. Business owners have a right to reconciliation against actual revenues earned.

Dedicated Funding Specialists

Consult a funding specialist to determine what options fit your business best, or ask for help at any time along the way as you provide business information and documents.

Prequalify in 60 Seconds

After you create your Biz2Credit account, you will get an initial estimate in as fast as 60 seconds of the amount your business may prequalify to receive. Subject to final documentation requirements and eligibility reviewⓘ.

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.

"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:

Annual Revenue Greater than $250k
575 credit
score or above
At least 6 months in business

How to Apply for Revenue-Based Financing

Step 1

Create Your Account

Provide us with your basic business information to help us understand your funding needs. If eligible, your business will be prequalified.

Step 2

Submit Your Application For Funding

Then complete the application by submitting documentation about your business's finances.

Step 3

Connect With Your Funding Specialist

At any time during the process, connect with one of our funding specialists about your application. Your specialist can update you about your application status and eligibility for Revenue-Based Financing.

Step 4

Get
a Funding Offer

Receive a funding offer for your business. Subject to final documentation requirements and eligibility review.

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A Business Owner’s Guide to Understanding Working Capital Loan Interest Rates

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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 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.

Take your business to the next level. Apply for funding today.

Apply Online

Or Call: 800-200-5678

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