Revenue-based financing (RBF) is a flexible way for eCommerce businesses to secure capital without giving up ownership. Payments are tied to a percentage of sales, ensuring they scale with your revenue - higher during busy months and lower during slower periods. Here’s why RBF is a game-changer for online sellers:
- Quick Access to Funds: Get funding in as little as 24 hours if you earn $3,000+ in monthly sales.
- Flexible Payments: Repayments adjust daily based on sales, helping manage cash flow.
- Full Business Ownership: Keep control of your business without giving away equity.
RBF is ideal for sellers on platforms like Amazon, Shopify, or Walmart Marketplace who need funds for inventory, marketing, or growth. Apply easily by connecting your store and bank account to verify sales data. Once approved, you can allocate funds to areas like inventory, shipping, or marketing to drive growth.
RBF Process for Online Sellers
How RBF Payments Work
Onramp Funds simplifies repayments by automatically deducting a set percentage from each sales deposit. This approach aligns payments with your sales performance, so you don’t have to worry about manual transfers. Here’s what you need to qualify for funding.
Getting Approved for RBF
To qualify, you’ll need to meet these requirements:
- Active sales on platforms like Amazon, Shopify, Walmart Marketplace, or TikTok Shop
- At least $3,000 in monthly revenue
- A U.S.-registered business entity
- A secure store integration to verify your sales history
- A connected business bank account for transferring funds
"Applied, got our offer, and had cash in our bank account within 24 hours. Their Austin, TX based team was very professional and helped me deploy the cash to effectively grow our business." - Nick James, CEO Rockless Table [2]
Once approved, the payment process adapts to your sales cycle.
Payment Structure
Payments are flexible, increasing during high-sales periods and decreasing during slower months. They adjust daily based on your sales, when deposits are made, and seasonal trends.
"Your payments sync with your sales, you'll never have to worry about your ability to repay during a slower month. You pay us when you receive sales deposits." - Onramp Funds [3]
Funding your eCommerce Marketing: Revenue-based finance ...
Main RBF Benefits
Revenue-based financing (RBF) offers eCommerce sellers a way to grow while aligning repayments with their sales performance. Let’s break down three major advantages.
Keep Full Business Control
With RBF, you keep complete ownership of your business. You stay in charge of decisions about strategy, products, marketing, and operations. Plus, you have the freedom to allocate funds where they’ll make the most impact.
"Don't give away a stake in your business just to keep up."
- Onramp Funds
Fast Access to Funds
Unlike traditional loans, which often involve long and complex applications, RBF simplifies the process by using your sales data and integrating directly with your store. Here's how it works:
- Quick application: Get an estimate in just minutes.
- Streamlined approval: Decisions are based on your store's performance.
- Fast funding: Receive funds in as little as 24 hours.
- Easy integration: Automated setup with your store.
Flexible, Sales-Based Payments
With RBF, your payments adjust to match your sales, making cash flow management easier, especially during slower periods. Key benefits include:
- Payments that scale with your revenue.
- Smaller payments during low-sales seasons.
- No fixed monthly payment requirements.
- Automated repayments for convenience.
"Onramp offered the perfect solution with revenue-based financing to secure the capital we needed to invest in inventory and pay it back at a reasonable time frame once we made sales. The process was quick, easy, and the support was great."
- Jeremy, Founder and Owner of Kindfolk Yoga
This payment structure helps businesses maintain steady cash flow while keeping financing costs aligned with revenue, which is especially helpful for those with seasonal sales patterns.
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Using RBF to Grow Your Business
Once you've outlined the payment structures and benefits, it's time to calculate your funding needs and secure the right resources.
Calculate Your Funding Needs
Start by analyzing your sales history and future growth to determine how much capital you’ll need. Focus on these key areas:
- Monthly revenue and seasonal trends: Look at your average monthly income and how it fluctuates during different times of the year.
- Projected costs: Consider expenses like inventory, marketing campaigns, and logistics.
- Cash flow patterns: Assess how money moves in and out of your business.
Onramp Funds offers a calculator to quickly estimate funding based on your average monthly revenue. This tool helps you align financing with your business's capacity and growth goals.
RBF Application Steps
Applying for Revenue-Based Financing (RBF) with Onramp Funds is straightforward. Here's how it works:
- Initial estimate: Use their funding calculator to get a preliminary offer. Note that you’ll need at least $3,000 in average monthly sales to qualify.
- Connect your store: Securely link your eCommerce platform (Amazon, Walmart, Shopify, etc.) to verify sales data.
- Review offers: Look through funding options tailored to your business needs.
- Bank account integration: Finalize the process by linking your business bank account.
"As the owner of your business, you know your business best. Use your funds on inventory, shipping and logistics, marketing spend, or anything else that would help grow your business and drive sales. We are always happy to strategize with you!" – Onramp Funds
Once approved, it's time to allocate the funds where they’ll make the biggest impact.
Using Funds Effectively
With RBF’s flexible payment system, you can invest in areas that drive growth and improve operations:
- Inventory: Keep stock levels high to meet customer demand.
- Marketing: Boost visibility and attract more buyers.
- Shipping and logistics: Enhance delivery speed and customer satisfaction.
- Operational needs: Strengthen internal processes to support expansion.
RBF Success Examples
Examples from sellers show how RBF can make a difference: Kindfolk Yoga focused on inventory management to stay in control of their business. Torrie's Natural improved cash flow with automated payment options. Rockless Table benefited from 24-hour funding for quick access to capital. Meanwhile, The Full Spectrum Company achieved same-day approval and funding, enabling rapid growth.
The Full Spectrum Company shared their experience with the process:
"Onramp's process is very straightforward and easy to navigate. I had funds in my account within a day of final approval."
Conclusion
Let's wrap this up:
Key Benefits of RBF
RBF offers repayment flexibility tied to your sales, quick access to capital - sometimes within 24 hours - and lets you retain full ownership of your business.
What to Do Next
Want to take your business to the next level? Here's how:
- Estimate how much funding you need based on your monthly sales.
- Connect your store to receive a personalized offer.
Use the funds for inventory, marketing, shipping, or expanding into new marketplaces.
