New York, NY - As small businesses continue to navigate unpredictable markets, rigid loan structures have become increasingly impractical and, in many cases, harmful to merchants facing seasonal swings, emergencies, or unstable economic conditions. FundKite is reshaping how businesses access capital through its Revenue Based Finance (RBF) program, a small business loans alternative designed to eliminate fixed repayment terms and provide true flexibility.

Rather than issuing a loan, FundKite structures its funding as a purchase of future receivables, making it fundamentally different from debt. Repayment is based on a fixed percentage of the merchant’s gross sales, often around 10% until the purchased receivables have been fully delivered. This means there is no fixed term, no rigid monthly payments, and no risk of defaulting due to temporary revenue drops.

“Traditional loans were not built for the way small businesses actually operate,” said Alex Shvarts, CEO of FundKite. “Sales go up and down based on weather, supply chains, local events, or global crises. Our revenue-based structure ensures that payments move with the business, not against it.”

This performance-driven model provides one of the most significant advantages for business owners: natural protection during slow periods. If sales decrease due to external events such as a hurricane, a recession, or a pandemic shutdown, the repayment amount automatically adjusts, reducing financial strain and preserving working capital when merchants need it most.

“Our goal has always been to put the business owner first,” Shvarts added. “Revenue Based Finance allows us to do exactly that - provide capital without saddling entrepreneurs with fixed terms or inflexible obligations. It’s a smarter, safer way for small businesses to grow.”

FundKite’s RBF typically results in a repayment period between 8 and 16 months, depending on sales performance. Instead of evaluating funding in terms of an APR or interest rate, businesses are encouraged to consider the cost of capital. For example, receiving a $90,000 lump sum with a total receivable cost of $100,000 represents a clear and transparent exchange, without compounding interest or long-term debt.

Key benefits of FundKite’s Small Business Loan Alternative include:

• No Fixed Terms - Repayment continues only until receivables are fully delivered.
• Payments Tied to Sales - A fixed percentage ensures flexibility, safety, and alignment with real cash flow.
• True Purchase Structure - Not a loan, eliminating many legal and financial burdens associated with debt.
• Built-In Protection - Payments decrease naturally during slow periods, reducing risk for the merchant.
• Transparent Cost of Capital - Simple, upfront costs that are easy for owners to evaluate.

FundKite’s model is particularly valuable for merchants who have been constrained - or even damaged - by traditional lending products with strict repayment schedules. By replacing fixed terms with adaptive repayment, FundKite is providing a sustainable capital solution built for modern business realities.

For more information about FundKite’s revenue-based small business loan alternatives, visit FundKite.com.

Media Contact

Name
FundKite
Contact name
Alex Shvarts
Contact phone
(807) 502-5003
Contact address
2 S. Biscayne Blvd #2350
City
Miami
State
FL
Zip
33131
Country
United States
Url
https://fundkite.com/