Revenue-Based Financing for Small Businesses

Revenue-based financing provides working capital in exchange for a portion of your business's future revenue. What you pay back changes with your sales. That can ease pressure during slower months and increase payments when sales rise.

If you're exploring revenue-based funding to smooth out cash flow, this structure gives you a payment approach tied to what your business brings in.

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What is Revenue-Based Financing and How Does it Work?

Revenue-based financing gives your business upfront capital in exchange for a percentage of future revenue. Instead of a fixed monthly payment, what you pay back adjusts with how much the business brings in, so payments ease up during slower months and pick up as sales improve. Businesses researching revenue based funding are usually looking for exactly this kind of flexibility, capital that moves with the business instead of against it.

This structure can suit businesses with revenue that changes from month to month, or that don't meet a bank's collateral or credit requirements. Expansion Capital Group evaluates revenue performance alongside credit, rather than relying on credit history alone, when reviewing your eligibility.

*Not available in all states.

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Flexible

Weekly/daily remittances

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Scalable

Funding from $5k-$500k

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Dependable

Over 40,000 small businesses funded

What are the Advantages?

  • Repayment Structure | Remittances are based on a percentage of the business's monthly revenue, so they move with performance instead of staying fixed.
  • No Maturity Date | The arrangement continues until the agreed amount is satisfied, rather than following a set term length.
  • Equity-Free Financing | Revenue-based financing does not require a pledge or sale of business equity.
  • Risk for Funders | ECG weighs your revenue performance alongside credit, which can open a path to capital even with a lower credit score.
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How Revenue-Based Financing Compares to a Bank Loan

Business owners researching revenue-based financing are often comparing it to a traditional bank loan.

A bank loan typically carries a fixed monthly payment and an interest rate set before funding begins, along with collateral and credit requirements that can be harder for some small businesses to meet. Revenue-based financing replaces the fixed payment with one tied to your revenue, so it can offer more flexibility when your monthly sales change.

Revenue-based financing also provides funding as a single lump sum, similar to a bank loan, but unlike a line of credit, where you draw funds as needed instead of receiving one deposit.

How Fast Is the Process?

Most applicants receive a decision in as little as 30 minutes, with funding available the same day once approved.* A funding advisor guides you through the process from application to funding, answering questions and explaining what you'll need along the way.

Minimum Requirements

Revenue-based financing can be highly beneficial for business owners seeking flexibility and performance-based funding.

  • At least 6 months in operation
  • At least $8,000 in monthly revenue
  • A personal FICO score of 500 or higher
  • An active business checking account

Additional underwriting criteria will apply. For more eligibility details, visit our Who We Fund page.

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FAQs

How Small Businesses Have Used Revenue-Based Financing

Small businesses have increasingly turned to revenue-based financing as a flexible and accessible way to fund growth. Unlike a traditional loan, revenue-based financing lets you secure capital without giving up equity or meeting strict credit requirements. Instead, financing is based on your business's future revenue, with what you pay back tied directly to it. This approach aligns ECG's interests with yours, since what you owe adjusts with your performance, giving you breathing room during slower periods and keeping pace as you grow.

Small businesses have used revenue-based financing to fund initiatives like expansion projects, marketing campaigns, inventory purchases, and hiring, giving them room to pursue growth while keeping their finances flexible.

A seasonal business like a landscaping or nursery operation often sees revenue swell in spring and summer, then taper off heading into winter. Revenue-based financing can help a business like this stock materials and bring on crew ahead of the busy season, with what it pays back easing off once the calendar slows down again. A restaurant business owner navigating a slower month between holiday rushes might use the same structure to keep the kitchen stocked and payroll covered, without adding a fixed payment on top of an already tight stretch.

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The statement that "funding can occur as fast as the same day" describes the fastest possible timeline and is neither typical nor guaranteed. Actual timing depends on the completeness of your application, ECG's review, the transfer method used, and the processing and cutoff times of your financial institution, which are outside ECG's control. Submitting an application does not guarantee approval, funding, or any particular terms.

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