Revenue-Based Line Of Credit
Kingsmen Capital provides a flexible revenue-based line of credit that helps businesses access working capital quickly, tied to their cash flow. This financing solution allows companies to secure funding without pledging assets, making it ideal for businesses looking for fast, scalable support.
What Is a Revenue-Based Line of Credit?
A revenue-based line of credit is a financing solution where businesses access capital based on their monthly or recurring revenue. Instead of relying on collateral, lenders evaluate cash flow and recent performance to determine eligibility and credit limits.
This structure provides businesses with flexible funding that grows alongside revenue, making it a popular choice for companies that need quick access to working capital without asset requirements.
How a Revenue-Based Line of Credit Works
A revenue-based line of credit operates as a revolving facility, allowing businesses to draw funds as needed and repay based on cash flow.
Revenue-Based Approval
Approval is based on your company’s recent revenue performance rather than collateral. This allows businesses with strong cash flow to qualify quickly.
Revolving Credit Structure
As funds are repaid, they become available again, giving businesses continuous access to capital without reapplying.
Flexible Repayment
Repayments are structured around your revenue cycle, helping reduce pressure during slower periods and improving overall cash flow management.
Revenue-Based Line of Credit vs Traditional Bank Credit
| Feature | Revenue-Based Line of Credit | Traditional Bank Loan |
|---|---|---|
| Approval Criteria | Based on revenue and cash flow | Based on credit score and assets |
| Collateral | Not required | Often required |
| CRA | Payoff CRA | CRA must be up to date |
| Flexibility | Revolving and adaptable | Fixed structure |
| Credit Score | Minimum credit score of 625 | Minimum credit score of 750 |
Many businesses choose a revenue-based line of credit when they need faster approvals and flexible repayment structures compared to traditional financing.
Here’s why our revenue-based line of credit stands out:
Businesses across Canada use a revenue-based line of credit because it provides fast access to working capital without collateral.
Fast, Cash Flow Driven Approvals
Approval is based on your company’s recent revenue, not collateral. With no real estate required, even younger businesses can qualify quickly and easily.
flexible access to working capital
Use your line of credit whenever you need it, from covering payroll to funding marketing campaigns. Draw, repay, and redraw as your cash flow requires.
No collateral, no hassle
Unlike traditional credit facilities, our revenue based line of credit does not require assets to be pledged, removing barriers and speeding up the process.
ongoing funding support
Your line of credit is not just a one time injection, it is a revolving facility. As you repay, funds become available again, ensuring long term support for your business.
Government Backed Confidence
Our financing programs are government backed, giving you peace of mind that you are supported by a trusted, reliable source of capital.
How Businesses Use a Revenue-Based Line of Credit
Businesses commonly use a revenue-based line of credit for:
- Managing cash flow fluctuations
- Covering payroll and operational expenses
- Funding marketing and growth campaigns
- Purchasing inventory
- Bridging short-term working capital gaps
Who Qualifies for a Revenue-Based Line of Credit?
Businesses applying for a revenue-based line of credit typically meet the following criteria:
- Registered Canadian business
- Consistent monthly revenue
- Minimum operating history (often 6–12 months)
- Active business bank account
- Basic financial documentation
Because approval is based on revenue, businesses without significant assets can still qualify.
Frequently Asked Questions About Revenue-Based Line of Credit
A revenue-based line of credit allows businesses to borrow funds based on 35% of their annual gross revenue rather than assets. This is an exclusive program only provided by Kingsmen Capital.
Many businesses receive approval within 3–5 business days once all documents have been submitted.
A revenue-based line of credit is typically a 1st position GSA against your business replacing your banking facility.
Funding amounts vary based on revenue but typically range up to 35% of annual growth sales up to $250,000.
Businesses use this financing for cash flow management, payroll, marketing, inventory, and operational expenses.
Apply for a Revenue-Based Line of Credit in Canada
Apply today to secure funding that grows with your revenue.