Revenue Based Financing

Revenue-based financing (RBF) provides businesses with capital in exchange for a percentage of future revenue. Instead of fixed monthly payments or interest rates, repayments fluctuate based on performance—higher when revenue is strong and lower when sales decline—making it more flexible than traditional loans.

Unlike venture capital, RBF does not require giving up ownership, allowing founders to retain full control. For entrepreneurs in Wisconsin and the Midwest, it can be a practical option for funding expansion, new products, or operations, especially for businesses with predictable revenue. While it offers flexibility, it can become costly if revenue grows quickly. Overall, RBF aligns repayment with performance, offering growth capital without sacrificing equity.