Revenue-based financing

Our dual role as both fund manager and investor aligns our interests closely with those of our capital partners.

It reflects our conviction in specialty finance as a durable, high-growth segment of the private credit market.

Revenue-based financing (RBF) provides small and medium-sized businesses with working capital in exchange for a fixed percentage of future revenues and receivables, purchased at a discounted rate and collected on a regular, predetermined schedule.

It can also be structured as a loan. Deals are underwritten with bank-grade diligence and are typically secured by UCC filings and personal guarantees, providing a structured, collateral-backed alternative to conventional lending.

RBF sits within the broader specialty finance market, a fast-growing segment of the roughly $1.7 trillion private credit industry. It exists to fill a persistent gap: bank approval rates have declined significantly over the past several years, and a large share of small business financing needs continue to go unmet or underfunded.

Unlike traditional bank loans, which can take 45 to 60 days to fund and rely on rigid, backward-looking credit criteria, RBF delivers capital in a matter of days, giving businesses fast, flexible access to the funding they need to grow.

RBF is built for companies whose revenue is proven but whose cash arrives unevenly. It funds the gap between the two.

What is revenue-based financing?

Revenue-based financing (RBF) provides small and medium-sized businesses with working capital in exchange for a fixed percentage of future revenues and receivables, purchased at a discounted rate and collected on a regular, predetermined schedule.

Is revenue-based financing a loan?

Usually not. It is typically a purchase of future revenues and receivables, but it can also be structured as a loan. Each agreement states which applies.

What kind of business is it for?

Lower and middle market businesses whose revenue is proven but whose cash arrives unevenly, and which need working capital faster than a bank can provide it.

How fast can a business receive funding?

In a matter of days, compared with the 45 to 60 days a traditional bank loan can take to fund.

How is revenue-based financing secured?

Deals are underwritten with bank-grade diligence and are typically secured by UCC filings and personal guarantees.

Where does revenue-based financing fit at AVS Partners?

It is our core strategy within private credit, including financing for businesses in the government contracting sector, where predictable receivables and contract-backed revenue make it particularly effective.

Can I invest through this website?

No. AVS Partners does not offer investments through this website. Nothing on it is an offer to sell, or a solicitation of an offer to buy, any security.