Once approved and the deal goes live, most deals fund within a day (often within minutes to hours), so you’ll never miss another growth opportunity.
REVENUE
BASED
FINANCING
Revenue based funding as low as 1% per month
Kickfurther funds up to 100% of your inventory costs at flexible payment terms so you don’t pay until you sell. Fund your entire order(s) on Kickfurther each time you need more inventory so you can put your existing capital to work growing your business without adding debt or giving up equity.
- Often 30% lower cost than alternate lenders & factors
- Quickly fund $5,000,000+ in inventory
- Create a custom payment schedule (1-10 months)
- Fund inventory with no payments until revenue lands
How Revenue-Based Financing Works
The revenue-based financing structure is similar to debt financing because the company will be providing investors with regular payments in return for their initial capital. However, it does not require any interest. You also won’t have to offer up collateral to investors or transfer ownership as you would in an equity model.
A Step-by-Step Look at How Revevue-Based Financing Works
- Apply for Funding: Platforms that provide funding will usually approve amounts that range from $10,000 to $10 million.
- Receive Capital: Once approved, you get the funds without any interest or collateral requirements.
- Share Your Revenue: Repayment is typically flexible so you can make higher payments when revenue is good and lower payments on slower months.
- Complete Repayment: Continue paying until you’ve repaid a set multiple of the original amount.
Here’s how it works, in a nutshell: If you receive $50,000 and agree to pay 7% of your monthly sales, your repayments will adjust based on your revenue. When sales slow down, you pay less, and this helps you manage your cash flow more easily.
Revenue-based financing is used as a form of growth capital. There may be limitations on what you can use the money for put in place by the lender. In most instances, you can use it for a variety of business needs including marketing, sales, development, hiring staff, and more.
When is Revenue-Based Financing Is a Good Option
Revenue-based financing can be a smart choice for businesses looking to grow without giving up equity. It works well in situations where flexible repayments aligned with revenue are essential for managing cash flow.
Revenue-based financing Can be Useful in the Following Situations::
Fast-Growing Companies
If your business is scaling quickly and you need extra cash for marketing or inventory, you only pay a small share of your sales. This keeps more money in your pocket for further growth.
Businesses That Want to Keep Control
If you want to grow without bringing in outside investors or giving up any ownership, this option gives you the cash you need while keeping you in charge.
Companies Handling Large Orders
If you get a big order but don’t have the cash to fill it, revenue-based financing can cover your production costs and help keep everything running smoothly.
Post-Seed Companies Needing More Cash
If you’ve already raised seed money but need extra funds to continue growing, revenue-based financing gives you that boost without affecting your initial investment.
Eligibility Criteria for Revenue-Based Financing
To qualify for revenue-based financing, most platforms require that your business meets several key criteria:
- An annual revenue of at least $200,000, with consistent monthly revenue of $15,000 or more
- Strong gross margins, typically around 50% or higher
- A clear path to profitability (not mandatory, but recommended)
- Minimal existing debt
- A diverse customer portfolio, serving at least five different clients
- Some platforms may have geographic restrictions, providing funds only to businesses in certain regions
Keep in mind that while revenue-based financing is often promoted as flexible—much like income-based business loans—the strict eligibility requirements can rule out many businesses.
If your company doesn’t meet these rigid standards, it might be time to consider other funding options that better match your needs.
Ideal Candidates for Revenue-Based Financing
Revenue-based financing isn’t right for every business. It works best for certain types of companies, such as:
- Technology Startups: These businesses have scalable models and steady recurring revenue. They can manage flexible repayments well.
- SaaS Firms: Companies that offer subscription-based software enjoy consistent monthly income, making this funding option a natural fit.
- Subscription Businesses: With predictable revenue, these companies can easily match their payments to their sales.
- Digital Media Companies: Those earning money from ads or service fees are well suited to revenue-based financing.
Choose Kickfurther For Revenue-Based Financing
Kickfurther helps you cover up to 100% of your inventory costs with payment terms you control. You can fund your entire inventory order each time you need more stock, letting you use your cash to grow your business without adding debt or giving up equity.
Here are the Benefits of Choosing RBF with Kickfurther:
- No Upfront Repayments: You start paying only when your new inventory begins to sell. Set a repayment plan that fits your cash flow.
- No Equity Sacrifice: Kickfurther provides the funds you need without taking any ownership in your business.
- Not a Traditional Loan: Since Kickfurther isn’t a loan, it doesn’t add debt to your books. This avoids the downsides of standard debt financing.
- Quick and Reliable Access: Get fast access to funds when supplier payments are due, so you never miss an opportunity.
By financing your largest expense — inventory — Kickfurther frees up capital for other critical areas like product development, advertising, or hiring, keeping you in full control of your business growth.
Scale Your Business Beyond Limits with Revenue-Based Funding
Fund your entire order each time you need more inventory. Put your existing capital to work growing your business without adding debt or giving up equity.
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HOW IT WORKS
- Create Your online account Create a business account, upload your business information, and launch your deal
- Get funded within minutes to hours Once approved, our community funds most deals within a day, often within minutes to hours, so you’ll never miss another growth opportunity.
- Control your payment schedule We pay your manufacturer to produce inventory. Make the introduction and you’re off and running! Outline your expected sales periods for customized payment terms. At the end of each sales period, submit sales reports and pay consignment profit to backers for each item sold.
- Complete and repeate Complete your payment schedule and you’re done! Often once the community knows you, you’re likely to get lower rates on your next raise.
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Frequently asked questions
Not seeing your questions here? Please feel free to reach out!
What is revenue based financing?
Revenue based financing involves investors agreeing to provide a company with capital in exchange for a percentage of its ongoing gross revenue. It is an attractive option for many businesses as it does not require the company to sacrifice equity or put up its assets as collateral. It also requires less documentation which makes for an easier, less time-consuming process.
How does revenue based financing work?
The revenue based financing structure is similar to debt financing because the company will be providing investors with regular payments in return for their initial capital. However, it does not require any interest. You also won’t have to offer up collateral to investors or transfer ownership as you would in an equity model.
Platforms that provide funding will usually approve amounts that range from $10,000 to $10 million. Repayment is typically flexible so you can make higher payments when revenue is good and lower payments on slower months.
How does Revenue Based Financing work with Kickfurther?
Brands can access funding for new inventory (or can get reimbursed for recently produced goods) from marketplace participants. The marketplace allows brands to access private funding at costs that can improve with each use. Your revenue based funding goes directly to your manufacturer for production of goods and you make no payments until you receive and begin selling new inventory.
Why do you need revenue based financing?
Revenue based financing can be useful in the following situations:
- Your company is growing quickly, and you need more money to meet marketing needs and inventory demand.
- Your company is planning to expand and, while you have enough cash flow to stay afloat, you are not in a position to raise capital from investors, and you don’t want to give up equity.
- Your company just got a big order and does not have the funds to fulfill it, or it requires funds to fulfill it while maintaining abundant capital for optimal liquidity
- Your company has raised a seed round of investment, but you are setting it aside to meet capital needs and you need extra money to grow.
How is revenue based financing used?
Revenue based financing is used as a form of growth capital. There may be limitations on what you can use the money for put in place by the lender. In most instances, you can use it for a variety of business needs including marketing, sales, development, hiring staff and more.
Revenue Based Financing vs. Other Loan Options
When you compare revenue based financing to other types of loans, you may find it comes with its share of advantages.
It is preferable to venture capital which involves investors putting huge amounts of company in a business they believe in. This type of funding is terrific for getting expansion off the ground, but it comes at a high cost. It also often requires the company to give up equity and provide seat board control to investors.
RBF may also be easier to acquire than a bank loan as it does not require as much documentation which prolongs the approval process.
Is revenue-based financing a loan?
No, RBF differs from a loan in many ways. For example, it does not require interest or fixed payments. Rather, payments are proportional to revenue. It also does not involve collateral.
Revenue-based financing vs. debt financing
Debt financing involves the company raising money by selling debt instruments to investors. These include fixed income products like bonds, bills, or notes. It is a good option for some businesses because it does not require the company to give up equity.
However, RBF has its advantages over debt financing. For one, it only takes a portion of the revenue to recover the amount funded. This eliminates the pressure of paying fixed monthly installment.
Other benefits it offers over debt financing include:
- A more streamlined application process
- No collateral required
- Fewer covenant restrictions
Revenue-based financing vs. equity financing
Equity financing is the process of raising capital by selling shares of the company. Once you get into an equity financing situation, the lenders are brought on as shareholders of the business. They will have their say in business decisions and they will continue to collect profits until the relationship is terminated.
With RBF, only a small percentage of the business is shared with the investing platforms and ownership remains intact.
What are the requirements to qualify for revenue based financing?
Generally, requirements for revenue based financing include the following:
- An annual revenue of $200,000 or higher
- A consistent revenue with high gross margins (typically a revenue of at least $15,000 a month with growth margins of at least 50%)
- Profitability isn’t always required but it’s recommended for businesses to at least have a defined path to profitability
- Little to no existing debt
- Company diversity in that you are supplying products of services to at least five clients
- Location may also be taken into consideration; some platforms will only provide funds for businesses in certain countries
RBF is mostly exclusive to SaaS and technology companies as well as subscription-based businesses. And because the financing is largely based on sales and revenue instead of credit score and business history, revenue based financing for startups is a common option.
Is revenue based financing best for your business?
Revenue based financing does not fit every business model. As previously mentioned, it is typically used for technology, SaaS and subscription-based businesses. If your company does not fall into one of these categories, you may have a hard time getting approved for Revenue Based Financing.
However, if you do meet the category requirements, you may find that Revenue Based Financing is a terrific option. It eliminates the fixed loan payment structure which can be stressful and may even inhibit your business’s growth.
It also does not require you to give up equity which means you can retain 100% of ownership in your business.
What is required to get funding with Kickfurther?
You must sell a physical product to get funded on Kickfurther. Your business must be compliant with State and Federal regulations and have an established track record of sales. Kickfurther is for inventory financing so you must have a physical product. Finally, all businesses are subject to approval by the Kickfurther quality team.
How fast will I get funded?