Revenue Based Funding

An alternative revenue source that is overlooked by many small businesses is the Revenue-Based Financing (RBF) loan model. Essentially the way it works is that you receive the …

An alternative revenue source that is overlooked by many small businesses is the Revenue-Based Financing (RBF) loan model. Essentially the way it works is that you receive the loan now without having to put up collateral, and you pay back the loan over time using your increased revenues. This is really the best of both worlds because the business owner and the investor both have the same goal – development of the business into a profitable and growing entity. Banks don’t care if your business grows and prospers; they just want their monthly payment on the 15th.

With RBF, often called royalty-based financing, the organization giving you the loan has a vested interest in your success. These loans are best for companies with little in the way of physical assets, but high growth potential and high profit margins. A business doing between $1 million and $10 million per year can qualify for loans between $100,000 – 500,000 from a company like JDB Financial LLC who will find the best lender for your particular situation.  A Revenue Based Financier has a very quick  turnaround  because they don’t need to verify the assets like a traditional loan, and only verify your revenue with your financial paperwork. Your loan payments are a percentage of the company’s monthly gross revenue. So if your revenue goes down your payment goes down, and if the revenue goes up then the payment increases along with it. Using a Revenue Based Financing loan to grow and expand your business could be the answer to your funding dilemma.

The Structure:

Claim up to $26,000 per W2 Employee

  • Billions of dollars in funding available
  • Funds are available to U.S. Businesses NOW
  • This is not a loan. These tax credits do not need to be repaid
The ERC Program is currently open, but has been amended in the past. We recommend you claim yours before anything changes.

The Client borrows 5% to 10% of the annual gross flowing through the bank account. The terms of the loan are based on strength of borrower, loan amount and your bank statements.
1) 6 months bank statements showing minimum of $10,000.00 monthly cashflow
2) Minimum 550 credit score
3) Copy of state issued ID
4) Copy of business license or professional license
5) Voided business account check
6) Copy of terms & signature page of business lease agreement.
7) Complete one page application
8) Last year’s tax returns are sometimes required.
No upfront fees! Flexible Terms, Close in Days


1) The Merchant doesn’t have to figure out the valuation of the business and this form of
financing does not dilute the ownership equity of the business.
2) The Merchant does not have to give up any equity in the business and there is no personal guarantor
or change of management. It also does not require the Investor to have a board seat.
3) The Merchant pays the loan back on a variable basis according to the ebb and flow of cash flow. It
turns a traditionally fixed expense into a variable expense.
4) The Investor receives his ROI without having to have an exit strategy such as an IPO or acquisition.
5) The Merchant is under less pressure since the Investor is getting immediate repayment.
6) Borrowing costs are tax deductible.
7) The Cost of Capital is 25% to 35% targeted vs. 150% equity.
8) The Factor Rate is much less than an effective interest rate required by an equity Investor on their
invested capital if business should be sold.
9) The legal fees are lower than with equity financing.
10)RBF focuses less on the personal credit score and more on the business situation, revenue model and
business cycles. As sales increase, Merchant is qualified for increased funding.
11)Does not require hard assets as collateral. This is an unsecured form of financing.
12)The Merchant qualifies for continual rounds of funding without excessive paperwork.
13)Minimum documentation, 24 hour approvals, fast funding (within 7 days).
14)Does not encumber the Merchant or his company with liens, contingent or even standing liabilities on
the books of the business.
15)The Merchant and the Investor have the same goals regarding the growth of the business. Both are
looking towards the long-term growth of the business instead of an impending liquidity event to
satisfy the interests of the Investor.
16)Loan can be paid off faster as revenues grow. The Investor benefits by receiving increasing payments
as revenues increase. Return to the Investor can be lower because the ROI is received more quickly.
17)There are no restrictive covenants regarding business usage of loan proceeds.

Contact  James Bullock for more info 330 832 5253 or email at


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Claim Up to $26K Per Employee

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