Ever thought about a better way to fund your business? One where your repayments are tied directly to your sales, so you don't have to give up a piece of your company.

If that sounds appealing, you should know about revenue based financing (RBF). It’s a flexible alternative that’s gaining real traction.

Here is something important to note: the global RBF market hit $6.4 billion in 2023. But it's projected to grow to over $178 billion by 2033, expanding at nearly 40% each year. That surge tells you just how many founders and investors are starting to prefer this model.

What Is Revenue Based Financing (RBF)?

In simple terms, revenue based financing provides capital upfront. You then repay that amount as a fixed percentage of your future monthly revenues. There's no rigid payment schedule, no need for personal collateral, and most importantly, you retain complete ownership.

It's a non dilutive option, which means you get to keep full control of your company. There’s no giving away shares or control.

Repayment flexes with your revenue slow months mean smaller payments; busy months let you pay more.

Instead of paying interest, you repay a pre agreed multiple of the principal (often 1.2× to 2.5×).

Typically, the deal structure includes monthly revenue share until that cap is met.

This makes RBF a blend between debt and equity financing you get the upfront capital of a loan, but repayments are tied to performance, and you don’t give up ownership like with equity funding.

How Does It Work? A Step by Step View

  • You apply for funding, often with a revenue history and projected growth. Some providers require minimal paperwork.
  • Say you get a capital advance of $100,000.
  • You agree to repay 6% of your monthly revenue until you’ve paid back 1.5 times the amount, which comes to $150,000 in total.
  • Payments adjust with your business slower months mean smaller amounts, while stronger months help you pay it off faster.
  • Once you hit the cap, the repayments end and you’re done.

Why RBF Wins for Businesses

  • One of the biggest advantages of RBF is that payments move with your cash flow. When revenue dips, you pay less, and when sales are strong, you pay it off faster.
  • It’s also quick and flexible. For instance, some providers can give approval in minutes and deliver funds within a day, often with very little paperwork involved.
  • Unlike bank loans, you don’t need to put up assets or have a perfect credit score. What matters most to RBF lenders is your revenue.
  • This is why it works especially well for businesses with steady or recurring income, such as SaaS companies, subscription services, or eCommerce stores.

 

Case Study 1

Private Medical Practice

  • The challenge:
     A small women’s health clinic in Houston needed funding to buy new diagnostic equipment and grow its telehealth services. But banks were unwilling to help because the clinic had tight cash flow and inconsistent insurance payments.
  • How LNS helped:
    We provided a revenue based financing option that gave the clinic fast access to funds without fixed monthly payments. Repayments were tied to their income, so they could stay on track even during slower months.
  • The outcome:
    The clinic upgraded its equipment, increased its patient intake, and grew its telehealth appointments by 40% within six months.
     


 

Case Study 2

E-Commerce Warehouse Operator

  • The challenge:
    A fast growing e-commerce business selling custom home goods was getting ready for its busiest time of year. Inventory needs were higher than ever, but when they tried to get a loan, the banks said no because their revenue went up only during certain seasons
  • How LNS helped:
    We offered a line of credit based on real time sales data and projected demand. This allowed the business to draw funds only when needed and keep cash flow healthy without overborrowing.
  • The outcome:
    The company met seasonal demand with ease and ended the quarter with a 50% revenue increase compared to the previous year without the stress of a fixed loan payment hanging over them.


 

Case Study 3

Independent Trucking Company

  • The challenge:
    A solo trucking operator wanted to expand his fleet by adding a second truck. However, his credit history wasn’t strong, and traditional banks wouldn’t lend without a long financial history or collateral.
  • How LNS helped:
    We offered a working capital advance based on his recent contracts and incoming payments. No collateral was required, and funds were delivered within 48 hours.
  • The outcome:
    He bought the second truck, took on two new contracts, and doubled his monthly income all within 90 days.


 

Real Solutions for Real Businesses

These stories aren’t outliers they’re everyday examples of how flexible lending changes lives.

At LNS Group, we believe funding should adapt to the business not the other way around. Whether you’re in healthcare, logistics, tech, or retail, our job is to understand your business, listen to your goals, and design a solution that works for you.

That could mean:

  • A short term loan to cover seasonal inventory
  • A line of credit to smooth out cash flow gaps
  • Revenue based financing tied to your performance

When RBF Might Not Be the Right Fit

  • If revenue dips sharply, repayments slow, extending the payback period significantly.
  • You’re giving up a portion of every sale, so high margin consistency is key.
  • Cost can be higher than traditional debt, depending on the multiple agreed.
  • Risk of misalignment: incentives of lender and founder may differ if revenue fluctuations are extreme.

 

Case Study 1

How RBF Works for LNS Group Clients

Here are three case studies that tied in with LNS Group’s offerings including Term Loans, Credit Lines, and Revenue Based Financing:

E-commerce Brand Expanded Inventory

  • Risk of misalignment: incentives of lender and founder may differ if revenue fluctuations are extreme.
  • The Outcome: As demand surged, they repaid faster, freeing them from inventory loans with fixed payments or interest. They stocked inventory, made sales, and scaled without diluting ownership.
  • Scenario: A growing online apparel brand needed $50,000 to stock seasonal inventory just ahead of peak shopping.

 

Case Study 2

SaaS Startup Hit Growth Milestones

  • Solution: Instead of giving equity, they tapped LNS Group’s RBF, agreeing to pay 4% of revenue until 2× ($400,000) had been repaid monthly.
  • The Outcome: As new subscriptions rolled in, they paid faster. In quieter months, they weren’t stretched thin by fixed loan payments. This preserved equity and aligned payment with growth.
  • Scenario: A SaaS provider needed $200,000 to hire a small team and boost marketing to push product adoption.

 

Case Study 3

Equipment Financing Boosting Efficacy Without Depleting Reserves

  • Solution: They chose LNS Group’s RBF and agreed to repay 7% of daily revenue until 1.5× ($30,000) had been repaid.
  • The Outcome: Holiday traffic meant brisk daily repayment. After the rush, business slowed and so did payments ensuring stable cash flow during off peak periods.
  • Scenario: A local Spanish café wanted $20,000 to stock up and hire holiday season staff.

 

The Final Word

Revenue based financing puts you in control. You get the funds when you need them, pay back in line with your sales, and still keep full ownership of your business. No surprise this space is growing fast it was worth $6.4 billion in 2023 and is expected to jump to $178.3 billion by 2033.

If your business brings in recurring revenue, has healthy margins, or steady cash flow, RBF can be a strong alternative to taking on loans or giving up equity.

 

Ready to move forward? Choose LNS Group

If you're looking for flexible, fast, and founder friendly funding, LNS Group has you covered. With options like Revenue Based Financing, plus Term Loans and Credit Lines, we make getting working capital simple and tailored to your business growth.

Apply now with LNS Group, get the funds you need, and repay on your terms.

Let’s grow smarter together.




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