Grow, Don’t Owe With Revenue-Based Business Loans
Unstable Revenues Giving You Worry Lines?
Earn more, pay more; earn less, pay less. Revenue-based small business loans and revenue-based financing are ideal for businesses with fluctuating revenues.
Get Used To Hearing “Yes”
500 minimum credit score and a team that appreciates your business’s potential. No wonder we have nearly twice the approval rate of the corporate business lenders.
We’re In The Business of Supporting Your Business
It takes 10 minutes to pre-qualify and as fast as 4 hours to get approved. No wonder 30,000+ businesses across the U.S. rely on us for business loans.
What is Revenue-Based Financing?
Revenue-based financing, also known as royalty-based financing, is a financing model in which businesses secure capital from an investor in exchange for a portion of the business’s monthly revenues. Usually, this amount will be a fixed percentage of the business’s revenues.
Naturally, that means that the business will pay more on months when generated revenues are higher, and less when revenues dip. This makes revenue funding optimal for business owners with strong—but fluctuating— gross revenues, or those with highly predictable revenues.
An increasingly popular form of funding, revenue financing is especially popular with tech companies and B2B software-as-a-service (SAAS) companies in particular, as such companies often have subscription-based sales.
Before we delve further into the pros, cons, and eligibility requirements of revenue-based lending, let’s look at the differences between revenue loans and equity or debt-based loans.
Unleash Your Business With Revenue-Based Loans
“I already had an existing dry cleaning business in another city, and an opportunity came to expand. We tried to go through traditional banks and private lenders, but unfortunately, the experience was very difficult and the terms were even harder. I called Credibly, and within two days I was able to get the funds that I needed. We were able to improve our business and the process was very, very easy.”
Revenue-Based Funding vs. Other Forms of Funding (Debt and Equity)
As mentioned above, revenue financing differs from both equity financing—including venture capital, growth capital and angel investing—and debt financing in notable ways.
Unlike traditional debt financing loans, which typically require fixed monthly payments and a set interest rate, revenue-based investing doesn’t accumulate interest. While the amount you’ll repay for a revenue loan may vary month to month, the percentage you’re paying won’t.
Funding that you receive from venture capitalists or private equity or angel investors, meanwhile, will entitle those investors to partial ownership. Equity financing offers the advantage of a lack of monthly payments, but it also means that you’re committed to forfeiting a portion of your equity, and therefore perhaps forfeiting some of your control over your business.
Up To $400,000 in 24 Hours…With Our Small Business Revenue-Based Loans and Financing
Are Revenue-Based Business Loans and Financing Right For You?
We love flexible financing as much as you do. But are small business loans based on revenue right for you?
With the pros and cons of getting a revenue loan, one could say it’s a financing option best suited for established companies that have a steady revenue history and aren’t worried about where revenues will be coming from in the future.
That’s not to say that businesses with inconsistent revenues over the course of the year can’t benefit (such as those with seasonally-fluctuating revenues), but revenue-based financing firms will generally want to see evidence of guaranteed revenues going forward. As stated above, businesses that operate on a subscription model (like SAAS companies) are also great candidates for revenue funding.
- Low credit scores and fluctuating annual revenues are eligible.
- Get approved and funded in as little as 48 hours.
- No fixed monthly installments to worry about.
- Unlike with venture capital, you don’t lose control of your business.
- Flexible payments don’t mean no payments—can your revenue streams support the loan?
- Borrowing may get expensive for lower credit scores.
- Some small business loans based on revenue may require collateral.
We Have More Than Just Revenue-Based Small Business Loans and Funding Options
Sold on revenue loans but not sure you’d qualify? Revenue-based financing isn’t the only alternative financing to traditional bank loans and equity financing.
At Credibly, we offer a range of small business financing options that suit a range of needs, including for business owners who don’t have a track record of solid gross revenues or an especially high credit score.
Enjoy lower interest rates and friendlier repayment terms.
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Working Capital Loan
Flexible loans that help you meet your day-to-day needs.
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Stop waiting months to save up for equipment you need now.
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All Financing Options
Still looking for the right growth capital? Check out all our financing options.
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We See You, Not a Balance Sheet
You’re not just a credit score and P&L sheet to us. We’ll understand your business and connect you to the best revenue-based business loans and financing.
Your Business, You’re Boss
We aren’t venture capitalists looking to take over, we’re partners cheerleading your success. How do you think we got a 4.8 rating on TrustPilot…?
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Small businesses financed across the USA
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How To Apply For Revenue Based Business Loans
Approval In As Fast As 4 Hours
Receive Funds Same-Day
Don’t Wait For Feasts, Stop Struggling Through Famine
Get the financing you need to stabilize your cash flow and grow your business.
* $15K+ avg. deposits for a three-month average and the most recent month.