Revenue Based Financing

Revenue-based financing (RBF) is a type of funding where a business receives capital from investors in exchange for a percentage of its future revenue. Unlike traditional loans, there is no fixed monthly payment or interest rate; instead, repayments fluctuate based on how well the business is performing. If revenue is high, the payments are larger, and if revenue is lower, the payments are smaller, which can make this type of financing easier to manage for startups and growing businesses. Unlike venture capital, revenue-based financing does not require giving up ownership in the company, so founders retain full control while still accessing growth capital. For entrepreneurs in Wisconsin and the Midwest, RBF can be a flexible option for funding projects, expanding operations, or launching new products, especially for businesses with predictable revenue streams such as subscription services, retail, or small-scale manufacturing. The amount of financing a business can receive and the repayment structure are usually based on projected revenue, so careful planning and financial forecasting are important. While RBF offers more flexibility than traditional loans, it can be more expensive in the long run if the business grows quickly, because payments are tied to a percentage of sales. Overall, revenue-based financing is a practical option for Midwest entrepreneurs who want access to growth capital without giving up equity, while aligning repayment with their business performance. It provides a balance of financial support and control, making it especially attractive for businesses looking for a manageable and performance-based funding solution.