Revenue-Based Financing - US Business Financing

Revenue-Based Lending

Smaller payments for slower months

At US Business Financing, we recognize the unique challenges that businesses operating in low to moderate income areas face. To address these challenges, we offer a specialized financing solution known as revenue-based financing. This innovative approach provides businesses with greater flexibility compared to traditional bank debt, without the need for equity dilution. Revenue-based lending operates similarly to a traditional term loan; however, instead of a fixed monthly payment, a percentage of the business’s revenue is utilized for repayment.

This distinctive structure allows for more manageable payments during slower revenue months, mitigating the financial strain that businesses often encounter during such periods. Conversely, in months of robust revenue generation, the repayment amount increases accordingly, enabling businesses to make larger payments and expedite the repayment process. This adaptive payment structure aligns with the fluctuating nature of business revenue, providing businesses in low to moderate income areas with a sustainable financing option that supports their cash flow and growth objectives.

Business Characteristics

Profitable, break-even or clear path to profitability
Growing revenues or positive trends
Recurring contracts and predictable revenue models are a best fit
Time in business: 12-18 months minimum

Revenue-Based Lending Criteria

Term: 2 – 5 Years
Funding amounts from $50K – $1MM
Revenue-Based Financing:
A portion of revenues will be paid monthly at a pre-established percentage until the principal and additional fees have been repaid
Typically 3%-9% of monthly cash receipts

Initial Underwriting Needs

2 years of financial statements (balance sheet, P/L, cash flow) broken out by month
Revenue by customer
Debt schedule
Projections (if available)

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