A quick funding process that offers revenue based business loans to business owners.
Last Updated on March 26, 2025
Shield Funding TeamIf you find qualifying for traditional business loans difficult, it may be time to consider a revenue based business loan.
Shield Funding has been providing revenue based business loans for more than a decade and is willing to take a chance on the growth of your business. With a solid plan and consistent revenue, a revenue-based business loan help take your business to the next level.
The process for securing working capital based on your existing business’ revenue is fast and easy, and even if you have bad credit you can be approved. Get started by applying online and see how much money is available to secure for your business.
What Do I Need to Qualify?
Below is a list of the general requirements to get approved for business funding with our basic program.
How Do I Apply?
Applying has never been easier. You can either call our toll free number 24 hours 7 days a week at:
OR
Apply for Revenue Based Business Loans!
Work with a direct lender and get a business loan as fast as the same day. Shield Funding offers competitive rates and terms on all it’s funding programs. Apply now with a trusted lender that has been helping business owners secure working capital for two decades.
A revenue based business loan provides the capital needed to grow your business. This capital comes in the form of a private business loan and comes from a lender who believes in what you’re doing.
Lenders expect these loans to be used to develop new products, expand your sales force, or venture into new markets. They’re not bound by the same regulations as a bank loan. Approvals and funding can be obtained in a relatively short period—much shorter than the months it may take a bank to reach a decision.
Revenue based business loans are all about your earnings—repayment terms are calculated as a percentage of your revenue. When reviewing your loan application, the lender focuses primarily on your revenue stream and your business plan. Lenders look for the potential to increase your revenue. Ultimately, the faster your business grows, the faster you pay off the loan.
So it’s key to have a plan for growing your revenue. You’ll need to present that plan convincingly to the lender.
Another factor lenders consider is your gross margin. Gross margin is your revenue minus the cost of goods sold divided by revenue. Lenders offering revenue-based business loans require a minimum 50% gross margin. This threshold helps guarantee that your revenue stream will be sufficient to support your business expenses as well as the monthly loan payment.
Your credit score and past credit history play little to no role in the approval process. Borrowers with growing monthly revenue can still qualify for a loan even if they haven’t been in business for very long or have had financial problems in the past. Fortunately for borrowers, revenue based loans rarely have any collateral requirements and are another form of unsecured business loans.
Borrowers are also able to obtain higher financing amounts with revenue based loans than with traditional loans. Revenue based business lenders are willing to take on more risk, because the repayment is tied to monthly revenue. On the flip side, the borrower pays more interest on these loans because of the higher risk.
Revenue based business loans provide fast, flexible funding that’s tied directly to your business’s income, making them an ideal solution for companies with steady sales but limited access to traditional financing. These loans are commonly used to purchase inventory ahead of busy periods, invest in marketing to increase sales, or hire additional staff to meet growing demand. Because repayment is based on a percentage of your daily or weekly revenue, this type of loan adjusts with your cash flow—helping you manage expenses without added financial stress.
Revenue based financing is also useful for businesses looking to expand quickly or take advantage of time-sensitive opportunities. Whether you’re opening a new location, upgrading equipment, or covering short-term operating costs, this funding option gives you the capital you need—fast—while offering flexibility that supports your business’s unique financial rhythm.
Before moving forward with a revenue based business loan, it’s important to evaluate your cash flow and understand how repayment will affect your finances. Since repayments are tied to your business’s income, the amount you owe adjusts with your sales—but you still need to make sure your revenue is consistent enough to cover those payments comfortably.
Review your monthly income, operating expenses, and profit margins to determine how much flexibility you have. While this type of funding offers quick access to capital, it may come with higher costs or shorter terms, so it’s essential to understand the total repayment amount, including any fees. Ensuring the loan aligns with your cash flow will help you manage payments without disrupting your day-to-day operations.
Borrowers who have a strong revenue growth plan are ideal for revenue-based business loans. The loan proceeds can be immediately directed toward growth projects—and that’s what lenders like to see when they’re betting on your growth. New product development, increasing your sales force, and new sales initiatives are excellent uses for a revenue-based loan. These efforts directly affect revenue growth. As they pay off, you pay down your loan faster, which lowers your ultimate borrowing cost.
If you don’t have collateral or are troubled by past credit problems, but have strong revenue growth, you may be the perfect borrower for this type of loan. These lenders care more about where your business is growing than where you came from. A solid business plan will do more to support your case for a revenue-based business loan than a lengthy review of your credit history that traditional banks are tied to. Seasonal revenue streams cause trouble for some business. They struggle to make expense payments during down months. Adding the stress of a set loan payment won’t do much to help. With a revenue-based business loan, your payment will fluctuate along with your revenue. This type of repayment plan is designed to keep your expenses in line with your cash flows.
Need money fast to take advantage of a growth opportunity? Niche lenders in this area don’t drag out your wait for an approval. You can get approved and have the cash in hand to start growing their business in several days or a few weeks. However, it’s important to note that you might not be the best candidate for this type of loan if you aren’t 100% sure that your business will be experiencing a solid amount of growth. This isn’t a loan that will keep you afloat—if you’re struggling, the higher interest rates could be be problematic. If you anticipate growth, though, revenue based business loans will help you make it happen! Does this sound like a good fit for your business? Give us a call to chat about our revenue based business funding options and other possibilities for funding your business!
Qualifying for a revenue based business loan depends on several key aspects of your business’s financial health. Unlike traditional loans that heavily weigh your credit score, lenders offering revenue based financing focus more on your sales performance and income consistency. They’ll consider how long your business has been operating, your average monthly revenue, and your recent bank activity.
Other factors such as your industry, seasonal income fluctuations, and how reliably you manage your financial obligations can also play a role. Since repayments are tied to your revenue, lenders want to ensure your business brings in steady income. These loans are typically approved quickly, so lenders rely on a clear picture of your current financial status to make fast, confident decisions.
The amount you can qualify for with a revenue based business loan is primarily determined by your monthly sales and the consistency of your business deposits. In most cases, lenders may approve funding up to 70% or more of your average monthly revenue. For example, if your business consistently brings in $50,000 per month, you could be eligible for a loan of around $35,000 or more.
Lenders evaluate your cash flow patterns, deposit history, and the overall stability of your business to determine how much you can borrow. The stronger and more reliable your financial performance, the greater your chances of receiving a higher funding amount through revenue based financing.
With a revenue based business loan, repayment typically begins soon after funding and is automatically deducted from your daily or weekly sales. Instead of fixed payments, you repay a percentage of your revenue—usually between 2% and 8% per month, with 5% being the average. This flexible structure adjusts with your business performance, so payments are lower during slower periods and higher when sales are strong, helping you manage cash flow more effectively.
However, it’s important to note that these loans often carry higher costs than traditional business loans. Depending on your business and credit profile, you may repay approximately 1.35 times the amount borrowed over the loan term. While this type of funding offers speed and flexibility, it’s important to weigh the overall cost against your expected return.
The cost of a revenue based business loan depends on a few key factors, including the percentage of your monthly revenue used for repayment and the overall terms of the agreement. Typically, lenders collect between 2% and 8% of your monthly sales, with the average being around 5%. Instead of traditional interest, these loans use a fixed repayment total based on your business and credit profile.
On average, you can expect to repay about 1.35 times the amount borrowed over the life of the loan. Since payments are tied to your income, they adjust based on your revenue—offering flexibility during slower months. This structure provides quick access to capital with repayment terms that move with your business’s performance, though it’s important to consider the higher overall cost compared to traditional loans.
This is likely one of the most important benchmarks you will use to compare lending options. If one lender offers a better interest rate than the other and all other things remain the same you can have a good idea of the rate comparison. You must keep in mind that different products such as credit cards or car loans work using traditional financing interest rates and APR, but many alternative funding programs quote in a factor rate or annualized interest rates so try to compare options based on the types of loans they are most similar to. And ultimately it will come down to what you have to pay back when all is said and done.
When comparing lending options, whether quoted in factor rates, interest rates, or any other framework, what is most important is what you will pay back when all is said and done. For this reason you should always try to look at what you will pay over the entire life of the loan.
A revenue-based business loan is repaid through a percentage of daily or weekly sales, whereas traditional loans require fixed monthly payments. This makes revenue-based loans more flexible, adjusting payments based on the business’s cash flow.
Lenders analyze monthly revenue, transaction volume, and consistency of cash flow to determine how much a business can borrow. The more stable and higher the revenue, the larger the loan amount you may qualify for.
Yes, some businesses use revenue-based loans to refinance or consolidate high-interest debt. However, the feasibility depends on your revenue and whether the loan terms offer a financial advantage.
Repayment is based on a fixed percentage of daily or weekly revenue, meaning that if sales are high, payments increase, and if sales are low, payments decrease. This ensures businesses can repay at a pace aligned with their earnings.
Yes, businesses with existing debt can qualify for a revenue-based loan, but lenders will assess current obligations and cash flow to determine whether additional financing is manageable.
Most lenders require businesses to have at least $10,000 to $15,000 in monthly revenue, though some may have higher or lower requirements depending on risk factors.
These loans generally do not impact personal credit unless the lender requires a personal guarantee. However, missed payments or defaulting could lead to negative marks on business credit reports.
