Best Revenue-Based Financing Loans & Lenders for Small Businesses of December 2024

Fuel your small business growth by exploring a variety of reputable lenders offering specialized revenue advance financing solutions tailored for quick access to funds and sustainable revenue enhancement. Whether you're looking to seize new opportunities or navigate cash flow challenges, these lenders are committed to supporting your small business journey.

What Is Revenue-Based Financing?

You might be looking for investors but not wanting to give up equity in your business. Revenue-based financing offers a solution for raising capital while retaining equity. With this financing method, investors provide upfront funds in exchange for a percentage of the company's ongoing gross revenues. That way, you can repay investors over time, directly tied to your revenue performance—without giving up equity.

Our Choices for Revenue-Based Lenders

Here is a list of five recommended sources for revenue-based lending.

Advertiser Disclosure We do not act as a lender but provide you with a range of options that fit your business needs. Small Business Choice may earn compensation from some of our partners, which may affect how and where their products appear on our site. Please note our site does not include all available options.

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Best for Business Loans With Good Credit

Fora Financial is an excellent choice for business financing if you have good credit, offering fast approvals and competitive interest rates. Their flexible terms and easy application process make accessing capital simple and efficient.

Fora Financial

Fora Financial offers flexible revenue-based financing with quick access to capital, ideal for businesses with fluctuating income.

  • Fast approval process with minimal paperwork.
  • No restrictions on how you use the funds.
  • Repayment terms that adjust with your business's revenue.
  • High approval rates, even for businesses with uneven cash flow.
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Credibly

Credibly is an excellent option for revenue-based loans because it offers flexible funding options, competitive rates, and a quick application process tailored for small businesses.

  • Provides funding up to $600,000, giving businesses access to significant working capital.
  • Uses a simple repayment structure, making it easy to understand and plan for cash flow.
  • Prioritizes small and medium-sized businesses with flexible qualifications, helping more businesses access funding.

AltCap

AltCap is a great choice for revenue-based loans due to its mission-driven approach that supports underserved businesses and promotes economic development:

  • Focuses on supporting minority and underserved communities, increasing access to funding.
  • Offers personalized guidance to help businesses understand funding options.
  • Provides flexible loan products, suitable for different stages of business growth.
  • Particularly suited for entrepreneurs looking for capital to fuel significant growth.

National Business Capital

National Business Capital is a strong contender for revenue-based loans because of its wide array of loan products and a commitment to making the funding process simple and accessible.

  • Provides a variety of loan options, including revenue advances, to suit diverse business needs.
  • Partners with over 75 lenders, increasing the likelihood of finding the right funding solution.
  • No minimum credit score required, making funding accessible for businesses of all financial standings.

Shield Funding

Shield Funding is an ideal choice for revenue-based loans for businesses needing quick, transparent funding solutions without the hurdles of traditional lenders.

  • Specializes in small business loans, focusing on providing funds to those underserved by traditional banks.
  • Features flexible repayment plans, designed to meet the unique needs of different businesses.
  • Provides transparent loan terms, allowing business owners to make informed decisions confidently.
  • Approvals are not based on credit score and past credit history, helping businesses that struggle with traditional credit requirements.

Frequently Asked Questions About Revenue-Based Financing

The main difference lies in the repayment structure. A merchant cash advance is typically repaid through daily or weekly deductions from credit card sales, whereas a revenue advance is repaid from a broader set of revenue sources, not limited to credit card sales, and can have more flexible repayment terms.

A revenue-based loan can be used for a variety of purposes, including inventory purchase, equipment upgrade, marketing efforts, expansion projects, or any other operational needs. It provides the liquidity needed to invest in growth opportunities without stringent use restrictions.

Revenue-based loans work by providing businesses with capital upfront in exchange for a portion of future revenues. Repayment terms are typically linked to the business's income, making them flexible. The amount and pace of repayment adjust with the business's revenue fluctuations, offering a tailored financing solution.

To qualify for revenue-based loans, businesses need to demonstrate consistent revenue generation and a solid business model. Your historical revenue streams, profitability, and future revenue projections are assessed to determine eligibility and the financing terms.

Revenue-based loans are ideal for businesses with strong and consistent revenue streams but may not have significant assets for collateral. They are particularly suitable for SaaS companies, e-commerce platforms, and other digital businesses, as well as traditional businesses looking for flexible financing options.

Pros include flexible repayment terms that align with your business's revenue, no need for collateral, quick access to capital, and the ability to retain ownership and control of your business without diluting equity.

Cons might include potentially higher costs over traditional financing due to the convenience and flexibility of the product, a requirement for a proven revenue history which newer businesses might not have, and the impact on cash flow due to the ongoing repayment model.

To apply for a revenue-based loan from an online lender, you'll typically need to provide your business's financial details, including revenue history, bank statements, and tax returns. After submitting your application, the lender will review your revenue to determine loan eligibility and terms, often offering a decision within a few days. Many online lenders have simple applications, allowing for fast approval and funding.

Revenue-based loans can significantly benefit a small business by providing flexible, non-dilutive financing that aligns with the business's growth. This type of loan allows businesses to access capital based on their revenue potential, supporting strategic investments and operational needs while maintaining cash flow.

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