Revenue-Based Financing (RBF) is a fast, flexible way for Shopify sellers to access funding without giving up ownership. It works by providing upfront capital, repaid as a percentage of sales, so payments adjust with your revenue. Here's why Shopify sellers are turning to RBF:
- Quick Funding: Get funds in as little as 24 hours after approval.
- Flexible Repayment: Payments scale with your sales, easing cash flow during slow periods.
- Ownership Retention: Keep 100% control of your business - no equity needed.
- Simple Requirements: Qualify with just $3,000 in monthly revenue.
Compared to traditional loans or equity funding, RBF is faster, more flexible, and tailored for eCommerce businesses. Use it for inventory, marketing, or scaling your store without the stress of fixed payments or giving up control.
| Comparison | RBF | Bank Loans | Equity Funding |
|---|---|---|---|
| Ownership Impact | Retain 100% ownership | Retain 100% ownership | Give up partial ownership |
| Repayment Structure | % of sales | Fixed monthly payments | No repayment |
| Payment Flexibility | Adjusts with revenue | Fixed, regardless of sales | N/A |
| Approval Process | Based on store performance | Credit score & collateral | Business valuation |
| Timeline | < 24 hours | Weeks | Months |
RBF is ideal for Shopify sellers who need fast, flexible funding to grow their business.
How to get Revenue-based Financing for your Shopify Store?
Main Benefits for Shopify Sellers
Revenue-based financing offers Shopify store owners a practical way to grow their businesses without the complications of traditional funding methods.
Keep 100% Ownership
A standout perk of revenue-based financing is that it allows you to maintain complete ownership of your business. Unlike equity financing, there’s no need to give up shares or control. This means you retain full authority over decisions, future profits, your brand’s direction, and the pace of your growth.
"Don't give away a stake in your business just to keep up." - Onramp Funds
Alongside this, repayment terms are designed to align with your sales cycles, giving you more control over your financial planning.
Pay Based on Sales
The repayment system adjusts to your sales performance, making it a great fit for eCommerce businesses that experience seasonal fluctuations. Rather than dealing with fixed monthly payments, which can be stressful during slower periods, payments automatically scale with your revenue.
Here’s how this helps:
- Payments decrease during slower sales periods.
- No pressure to meet fixed amounts during revenue dips.
- Easier cash flow management for peak inventory purchases.
- Predictable payments tied to actual business performance.
This flexibility ensures you can focus on growth without worrying about rigid repayment schedules.
24-Hour Funding
Quick access to funds is another key advantage. With revenue-based financing, you can secure capital in as little as 24 hours, enabling you to act on growth opportunities immediately.
"Onramp's process is very straightforward and easy to navigate. I had funds in my account within a day of final approval." - Adam B., The Full Spectrum Company
Fast funding is especially helpful for:
- Managing unexpected inventory demands.
- Taking advantage of bulk discounts or supply chain deals.
- Launching urgent marketing campaigns.
Nick James, CEO of Rockless Table, shared his experience:
"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."
This speed and simplicity make revenue-based financing a powerful tool for Shopify sellers looking to scale efficiently.
Setting Up RBF for Your Shopify Store
Review Your Metrics
Before applying for revenue-based financing, take a close look at your performance metrics. Many providers require an average of at least $3,000 in monthly sales to qualify. Assess your monthly revenue, seasonal sales trends, inventory costs, marketing expenses, and cash flow. This will help you determine how much funding you need and confirm eligibility.
Choose the Right RBF Provider
Find a financing provider that understands eCommerce businesses. Look for features like clear fee structures (usually between 2–8%), fast approval times, flexible repayment options, and strong Shopify integration. Providers like Onramp Funds are known for offering these benefits.
Link Your Shopify Store
Connecting your Shopify store is simple and secure. This step allows the provider to analyze your sales data and create a funding offer tailored to your needs. Grant read-only access to your sales data so they can evaluate your business. Once connected, you’ll receive a customized funding offer to help grow your store.
Spend Strategically
Once you’ve secured funding, use it wisely. Invest in areas that will grow your business, such as increasing inventory, launching marketing campaigns, improving shipping processes, or upgrading your operations.
Monitor Your Progress
Keep an eye on your business metrics to ensure the funding is being used effectively. Track indicators like sales growth, inventory turnover, marketing ROI, repayment progress, and overall cash flow. Regularly reviewing these metrics will help you measure the impact of your investments.
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RBF vs Other Funding Types
When considering funding options for your Shopify store, it's important to compare Revenue-Based Financing (RBF) with more traditional methods. Here's a breakdown of the key differences to guide your decision.
Funding Options Compared
| Funding Aspect | Revenue-Based Financing | Traditional Bank Loans | Equity Funding |
|---|---|---|---|
| Ownership Impact | Retain 100% ownership | Retain 100% ownership | Give up partial ownership |
| Repayment Structure | Percentage of monthly revenue | Fixed monthly payments | No repayment required |
| Payment Flexibility | Adjusts with sales | Fixed payments, regardless of sales | N/A |
| Approval Process | Based on store performance data | Credit score and collateral | Business valuation |
| Typical Timeline | Less than 24 hours | Weeks | Months |
| Best Used For | Inventory, marketing, operations | Long-term fixed assets | Major expansion |
RBF is particularly well-suited for eCommerce businesses. Unlike traditional loans, which require fixed payments no matter your sales, RBF adjusts payments based on your actual revenue. This flexibility is especially helpful during seasonal highs and lows or in response to unexpected market changes.
Another advantage of RBF is the speed of funding. Providers typically analyze your store's performance data and can deliver capital in under 24 hours. Traditional loans, on the other hand, often involve lengthy approval processes, credit checks, and paperwork, taking weeks to finalize. This quick access to funds allows Shopify sellers to seize time-sensitive opportunities without delay.
For Shopify businesses aiming to grow while maintaining control, RBF is a great option. Unlike equity funding, which requires giving up partial ownership, RBF lets you access growth capital without sacrificing your stake in the business. This means you retain full decision-making authority over your store's future.
Finally, the approval process for RBF is tailored to eCommerce. Rather than focusing on credit scores or requiring collateral like traditional lenders, RBF providers prioritize your store's performance metrics. This makes funding more accessible for online retailers.
These factors highlight why RBF is a strong choice for Shopify sellers looking to scale their businesses quickly and efficiently.
Onramp Funds Features
Onramp Funds provides tools designed to help Shopify sellers manage their funds effectively, building on the benefits of revenue-based financing (RBF).
Quick Funding Process
Onramp Funds makes accessing capital fast and hassle-free. Once approved, funds are delivered within 24 hours. The platform connects securely to your Shopify account in read-only mode, analyzing your sales data to make decisions based on your actual performance - no personal credit checks required.
eCommerce Platform Support
Onramp Funds integrates seamlessly with Shopify. Their team in Austin provides personalized support to help you make the most of your funding.
"Onramp has simplified cash flow by automating everything: easy to request, set it and forget it payments - quick and fast!" - Torrie V., Founder and Owner of Torrie's Natural
Clear Fee Structure
Onramp Funds uses a straightforward fee model that adjusts payments based on your sales. Here's a breakdown of the key features:
| Feature | How It Helps You |
|---|---|
| Revenue-Based Payments | Payments scale with your sales performance |
| Automated Collections | Payments are processed automatically |
| No Hidden Fees | Costs are transparent and upfront |
| Flexible Terms | Repayment aligns with your business growth |
These features are designed to simplify financing and provide flexibility tailored to your business needs.
Conclusion
Main Points
Revenue-based financing (RBF) offers Shopify sellers a way to grow their businesses without giving up ownership or dealing with rigid repayment terms. This funding model adapts to your business performance, providing a practical solution for scaling operations.
Here’s a quick look at the benefits RBF brings to Shopify sellers:
| Benefit | What It Means for You |
|---|---|
| Quick Access | Receive funding in as little as 24 hours |
| Flexible Payments | Repayments adjust based on your sales |
| Growth Support | Use funds for inventory, marketing, or operations |
| No Equity Loss | Keep 100% ownership of your business |
With these advantages, RBF offers a clear path to growth.
Getting Started
Getting started with RBF is simple for Shopify sellers. Once you confirm your eligibility, the process moves quickly from application to funding.
An automated repayment system aligns with your sales, so you can focus entirely on running your business. Work with the support team to fine-tune your funding strategy and fuel your business growth.
