Revenue-based loans are a flexible financing option where small businesses and startups repay borrowed funds as a percentage of their future revenue, rather than through fixed monthly payments. This type of loan is ideal for businesses with fluctuating income, as repayments adjust according to the company’s earnings—higher during strong months and lower during slower periods. Unlike traditional loans, revenue-based financing does not require collateral or a perfect credit score, making it accessible to startups and growing businesses with limited financial history. Lenders typically assess the business’s past and projected revenue to determine loan eligibility and repayment terms. This financing option is particularly popular among businesses in sectors with recurring revenue, such as e-commerce, SaaS, and subscription-based models, as it aligns funding with cash flow.