Economic Uncertainty Drives Demand for Diverse Financing Options
Washington, D.C. — The Revenue Based Finance Coalition (RBFC) today highlighted new data showing American small businesses continue to face significant financial pressure. The findings underscore the importance of preserving access to a broad range of financing options.
A new report from Revenued, On Shaky Ground: How Small Business Owners Are Navigating Rising Costs, Shrinking Cash, and a Broken Funding System, finds that many small businesses are facing rising costs, tighter cash flow, and continued economic uncertainty. According to the report, businesses are increasingly relying on external capital to support inventory purchases, payroll, and growth investments.
“Small business owners are managing real financial strain. Costs continue to rise and access to traditional credit remains limited,” said Mary Donohue, Executive Director of RBFC. “Ensuring entrepreneurs can choose from responsible, flexible capital options is critical to their ability to stay competitive and continue growing.”
The Revenued report highlights several trends affecting small businesses nationwide, including:
- Persistent inflationary pressure on operating costs
- Cash flow volatility across many sectors
- Continued barriers to accessing traditional bank financing
- Growing demand for flexible funding solutions
For many small business owners, traditional bank loans remain difficult to obtain. Underwriting requirements, collateral expectations, and lengthy approval timelines are burdensome. As a result, alternative financing products, including revenue-based financing, have become an important source of working capital for thousands of small businesses.
Revenue-based financing allows businesses to access capital and repay it as a percentage of future revenues. This model aligns repayment structures with the realities of fluctuating cash flow.
“Entrepreneurs need practical financing tools that reflect how modern small businesses actually operate,” Donohue said. “Revenue-based financing and other non-bank options can help close funding gaps and provide a pathway for businesses with strong revenue potential to invest in their future.”
The RBFC emphasized that policymakers should carefully consider how regulatory decisions may affect small businesses’ ability to access diverse financing products.
“Overly restrictive policies risk reducing the availability of responsible capital at a time when many businesses are still navigating economic uncertainty,” Donohue said. “Supporting access to financing should remain a priority for leaders focused on small business stability and growth.”
The coalition encourages policymakers, regulators, and industry leaders to work collaboratively to support responsible innovation in small business financing and maintain a competitive marketplace that serves entrepreneurs nationwide.
The Revenued Q1 2026 Small Business Financial Health Report is available here.
About RBFC
The Revenue Based Finance Coalition (RBFC) represents responsible providers of flexible growth-oriented funding for small and medium-sized businesses. Bringing together funders, brokers, ISOs, and industry vendors, RBFC advocates for policies that expand access to revenue-based financing, promotes regulatory compliance, and supports a sustainable financial ecosystem that helps businesses invest, hire, and grow. For more information, visit www.rbfc.net.