Access to capital remains one of the most persistent challenges facing small and medium-sized businesses. Traditional loans often require strong credit, collateral, and fixed monthly payments that do not always align with how modern businesses generate revenue. As a result, many founders are exploring alternative funding models that provide flexibility without sacrificing growth potential. One of the most talked-about options is revenue-based financing. Revenue-based financing is neither debt in the traditional sense nor equity dilution. Instead, it sits between the two, offering a structure that adjusts repayment based on business performance. For the right company, it can be a powerful growth tool. For the wrong one, it can become an expensive constraint. Understanding when revenue-based financing works and when it does not is essential before committing to this funding model. What Is Revenue-Based Financing Revenue-based financing allows a business to receive upfront capital in exch...