AVI Business Solutions

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...

For many small- and medium-sized business owners, the word “debt” carries a negative connotation. It is often associated with financial stress, cash shortages, or past mistakes. In reality, debt is neither good nor bad in itself. When used strategically, debt can be one of the most powerful tools available to fuel growth, stabilize operations, and position a business for long-term success. The key question is not whether a business should use debt, but when it makes sense to use debt as a growth lever rather than a survival crutch . Understanding Good Debt vs. Bad Debt Before discussing timing, it is critical to distinguish between productive debt and destructive debt. Productive debt is used to generate additional revenue, improve efficiency, or create long-term value. Examples include funding inventory that will sell quickly, purchasing equipment to increase capacity, or investing in marketing that reliably generates new customers. Destructive debt is typically used to cover chroni...

  For small and medium-sized businesses, cash flow is not just a financial metric; it is the lifeblood of daily operations. Payroll, inventory, rent, marketing, and unexpected expenses all depend on having the right amount of capital available at the right time. When internal cash is not enough, external financing becomes a strategic tool. Two of the most common options are business loans and lines of credit . Understanding which aligns with your cash flow predictability can help you feel more confident and in control of your financial decisions.  Understanding how each option works and how it affects cash flow can help business owners make smarter, more sustainable financing decisions. Understanding Business Loans A business loan provides a  lump-sum capital advance  that is repaid over a fixed period, typically  with fixed monthly payments. These loans are usually used for larger, one-time investments expected to generate long-term value, helping business own...