Washington, D.C. — The Revenue Based Finance Coalition (RBFC) is underscoring the important role revenue-based financing (RBF) plays in supporting small businesses, while cautioning that a recently published Credible Law industry report presents an incomplete picture of small business financing options.
Flexible funding solutions are used by small business owners to manage day-to-day cash flow, respond to seasonal revenue fluctuations, purchase inventory, and pursue growth opportunities. RBF products are designed to align repayment with business performance. The products offer a much needed alternative for companies that may not qualify for traditional bank loans.
“Access to practical, flexible capital can make the difference between stagnation and growth for small businesses,” said Mary Donohue, Executive Director of RBFC. “Revenue-based financing helps thousands of entrepreneurs bridge cash flow gaps, invest in their operations, and continue serving their customers and communities.”
The RBFC took issue with the Credible Law report focusing on litigation, enforcement actions, and historical controversies. The report failed to account for the broader market context, including the large number of businesses that use RBF successfully.
“A report built primarily around disputes does not reflect how the market functions for most businesses,” Donohue said. “Small business owners are making real use of these financing tools every day to manage payroll, cover operating expenses, and navigate economic uncertainty.”
The coalition also noted that the report frequently conflates the actions of independent brokers and intermediaries with those of financing providers, which can create confusion about how the industry operates.
“Like any financial sector, there are areas where stronger standards are needed,” Donohue said. “That is why responsible providers have supported greater transparency, broker oversight, and clear disclosure requirements in multiple states. Targeted solutions can address misconduct without limiting access to funding that many businesses depend on.”
RBFC further emphasized that RBF differs in important ways from traditional loan products. Repayment structures are tied to business revenue, timelines can vary based on performance, and funding decisions often rely on real-time business data rather than collateral requirements or lengthy underwriting processes. For businesses facing tight margins or high rejection rates from conventional lenders, these features can provide a meaningful pathway to capital.
“The small business finance conversation should focus on expanding responsible access to funding, not narrowing the options available,” Donohue said. “Broad conclusions drawn from a subset of legal cases overlook the positive role flexible financing plays in supporting entrepreneurship and economic activity. Responsible RBF providers remain committed to ethical practices, transparent disclosures, and policies that strengthen the small business funding ecosystem.”
RBFC encouraged policymakers, regulators, and members of the media to consider the full range of market data, repayment outcomes, and financing alternatives when evaluating reports about the sector.