New York, NY - Expanding a business is rarely predictable. Sales can surge faster than expected - or slow temporarily due to seasonality, market shifts, or operational growing pains. Traditional financing, with fixed monthly payments and rigid terms, often adds risk at the very moment businesses are trying to grow. FundKite is addressing this challenge with a modern business expansion loan alternative built around flexibility: Revenue Based Finance (RBF).

Unlike a conventional business expansion loan, FundKite’s model links repayment directly to a merchant’s actual sales. Instead of fixed installments, repayment is calculated as a fixed ratio of receivables collected - commonly around 10% of sales - until the purchased receivables are fully delivered. There is no fixed repayment term, allowing the financing to expand or contract naturally with business performance.

This structure provides a powerful risk-mitigation advantage for growing businesses. If sales accelerate rapidly, repayment happens faster. If revenue slows, payments automatically decrease. Based on historical performance, repayment typically models out to 8 to 16 months, but the timeline adjusts dynamically with real-world results.

FundKite’s Revenue Based Finance is structured as a purchase of future receivables, not a loan. The company buys a portion of a merchant’s future sales at a discount - generally ranging from 10% to 28% - based on historical revenue performance. The cost of capital is transparent and straightforward: it is the difference between the lump sum received and the total receivables purchased, rather than an interest rate that compounds over time.

This distinction is especially important for entrepreneurs and financial advisors evaluating expansion capital. Because the product is not debt, there are no amortization schedules, maturity dates, or fixed minimum payments that can strain cash flow during uneven growth cycles.

Another advantage of FundKite’s business expansion loan alternative is flexibility for high-performing merchants. Businesses that experience rapid growth and repay earlier than expected may be eligible for discounts on the remaining balance, further reducing the overall cost of capital. This creates alignment between FundKite and its merchants: when the business succeeds, both parties benefit.

The model is particularly well-suited for businesses experiencing:

• Rapid expansion or sudden increases in demand
• Seasonal revenue fluctuations
• Market-driven growth spurts
• New location openings or product launches
• Scaling inventory, staffing, or marketing initiatives

Traditional expansion loans often assume linear growth and predictable cash flow - assumptions that rarely hold true in real-world business environments. FundKite’s approach recognizes that growth is dynamic and financing should be as well.

By eliminating fixed repayment schedules and tying performance directly to sales, FundKite enables businesses to pursue expansion with confidence. Owners can reinvest capital into growth initiatives without worrying that a slower-than-expected month will jeopardize their financial stability.

For merchants seeking a business expansion loan alternative that adapts to performance instead of constraining it, FundKite’s Revenue Based Finance offers a clear, flexible path forward - one designed for modern businesses navigating unpredictable growth.

For more information about FundKite’s revenue-based expansion funding solutions, visit FundKite.com.

Media Contact

Name
FundKite
Contact name
Alex Shvarts
Contact phone
(877) 502-5003
Contact address
2 S. Biscayne Blvd #2350
City
Miami
State
FL
Zip
33131
Country
United States
Url
https://fundkite.com/