Revenue-Based
Financing

Revenue-Based Financing allows small businesses to raise funds by pledging a percentage of future, ongoing revenues in exchange for capital provided by a lender. 

Revenue-Based Financing is distinct from debt financing — interest is not paid on an outstanding loan balance and there are no fixed payments. Instead, payments are proportional to a firm’s performance, offering businesses a flexible, patient source of financing.

Revenue-Based Financing Education

Learn more about how Revenue-Based Financing works with our educational video series.

Created in partnership with Next Street, this program looks at Revenue-Based Financing basics, shows an example of a loan, discusses its pros and cons and helps you compare to other financing options. Click on the videos to learn more.

Part 1: Introduction

Part 2: Case Study Example

Part 3: Pros & Cons

Part 4: Comparing Loan Options

Details on Revenue-Based Financing

  • These terms are subject to change.

    • Term: 60 months

    • Multiple: up to 1.5x

    • Monthly payment: 8% of total monthly revenue

    • Cap APY/APR: 20%

    • Origination Fee: 4%

    • No prepayment penalty

  • Eligible businesses can be from any industry and at any stage of the business life cycle — from startup to mature — however AltCap is initially targeting entrepreneurs that are looking for capital to fuel significant growth. Revenue-based financing is not meant to use to finance normal working capital needs — i.e. to maintain existing levels of business activity — or to refinance existing debt.

    An AltCap Business Development Officer can help you decide if revenue-based financing is right for your business.

  • To apply for a revenue-based financing, you will be asked to provide the following documents:

    Personal Documentation

    • Two forms of ID (each signer) – One with a picture other with a name only

    Business Documentation

    • Business Plan (if the business is under one year in operation)

    • EIN (Tax ID) Form

    • Articles of Organization / Incorporation

    • Certificate of Good Standing

    • Operating Agreement (for LLC) or By-Laws (for Corporations)

    • Business Insurance/Liability Insurance

    Financial Documentation

    • Three years of financial

    projections

    • Last three years of business tax

    returns including all schedules

    • Last three years of financial

    statements

    • Business Debt Schedule

    • Last six months of business bank statements

    • Ensure your financial statements are up to date, accurate, and clearly reflect an understanding of your business operations.

    • Craft a detailed and well-supported plan for how you will use the funds. This should include the projected return on investment, whether through potential revenue growth or operational efficiencies.

    • Prioritize building relationships with your lenders by maintaining open communication and demonstrating a track record of reliability — this can significantly enhance your chances of loan approval.

    • Explore all your options, whether they involve traditional bank loans, SBA loans, or specialized industry-specific funding programs.

    • Maintain liquidity and reduce existing liabilities whenever possible to improve the overall financial health of your business and make it more attractive to lenders.

  • Si necesita un préstamo para pequeñas empresas y necesita ayuda en español, comuníquese con Karina Lopez al (833) 549-2890 o karina@altcap.org.

  • If you have an existing revenue-based financing loan and have questions about your loan terms or if you need to update your information, please contact Viva Young at 816-269-7809 or viva@altcap.org.

    If you need to make a payment on your existing AltCap loan, please contact Viva Young at 816-269-7809 or viva@altcap.org.

  • Small business owners who have questions about the application process should contact a Business Development Officer at info@altcap.org or (833) 549-2890.

Start the Revenue-Based Financing Loan Process

For businesses in Colorado, Kansas, Missouri, Nebraska and Texas.

Take a listen

AltCap CEO Ruben Alonso discusses revenue-based financing, microlending, and more on the RBFN podcast. Click here to listen.

Contact us to learn more

Articles for Entrepreneurs Exploring Small Business Loans

Frequently Asked Questions

  • As a mission-driven Community Development Financial Institution (CDFI), AltCap can often overcome traditional lending constraints. Challenges like previous denials, credit scores, bankruptcy, and limited collateral, may be overcome by other positive aspects of your business, like community impact, additional guarantors, or other sources of revenue. We’ll work to understand your needs and create solutions to help you grow your business.


  • Yes. We lend capital to small businesses regardless of their industry, size, or stage of growth. Owners of startups will be asked to provide a business plan, financial projections, and other documentation in lieu of historical financial statements.

  • No, AltCap does not offer depository services or consumer banking products, but we have other local CDFI and banking partners who can serve your unique needs. Visit the KC CDFI Coalition or speak to your Business Development Officer to learn more. 


  • AltCap and its affiliate, AltCap California, serve entrepreneurs in California, Colorado, Kansas, Missouri, Nebraska and Texas.

  • Yes. We understand that your business has unique needs and while you work hard to be resourceful, challenges can arise. We will accept applications from businesses with up to two active loans and at least six months of payment history. Our team will work with you to assess your ability to take on new debt and what collateral may be available to support your needs.

  • AltCap can provide entrepreneurs $5,000 to $250,000 in debt capital to launch, operate or grow their small businesses. Proceeds may be used to fund equipment, marketing, payroll, services, capital expenses, and more. The amount you can borrow will depend on your capital needs and your ability to cover the debt service. 

  • Collateral is not always required of our borrowers but providing collateral may help you access better loan terms. Discuss your collateral options with your Business Development Officer. UCC’s are required for all business loans.

  • No. AltCap does not require a minimum credit score for most products. We work with you to understand the circumstances of your credit and evaluate it alongside your financials, management abilities, and growth potential.

  • Our goal is to provide capital in a timely manner.  On average, an AltCap loan can take 30-45 days from application submission to credit decision to complete. Questions or challenges may arise as we review your documents, and it is critical that you provide a timely response to keep the analysis and underwriting process moving.

  • In addition to accessible capital, AltCap provides other business support and services to our clients. We also collaborate with other lenders and business advisors to provide you with the support you need to start, grow, and sustain your business. Talk to your Business Development Officer about your options and visit our affiliate organizations, equity2 and Community Capital Fund.