Flexible, fixed-cost financing to help you grow your business.
What is revenue-based financing?
Revenue-based financing is a flexible financing option that makes it possible for you to access the funding you need without giving up any equity in your business.
Using revenue-based financing, your business receives funding from a financing company in exchange for a percentage of its ongoing revenue.
Unlike traditional loans, where fixed monthly payments are made regardless of how well your business is doing, revenue-based financing lets you pay down your financing using a percentage of your business’s revenue until a predetermined total amount is reached.
Because revenue-based financing is tied directly to a small business’s regular revenue performance, during periods of high revenue, the payment amounts are higher, while during periods of low revenue, payment amounts decrease
Is revenue-based financing debt or equity financing?
Revenue-based financing is, technically, neither debt nor equity financing since funds are received through the financing company’s purchase of a small business’s future sales.
While revenue-based financing can look like debt financing since you will be receiving a lump sum of funds from your financing company and then making payments to your financing company, there is no interest involved. Instead, there is a fixed cost to the financing, based on a factor rate, that is paid back with a fixed percentage of your revenue – on a daily, weekly or monthly basis, depending on your final agreement.
Revenue-based financing does not pass over any equity to the financing company, meaning the financing company will not have any ownership of your company like it would with venture capital or any other form of equity financing. Instead, revenue-based financing is a flexible option that allows you to get the funds you need, while still maintaining full control and ownership of your business