Repayment that moves with your sales.
A lump sum now, repaid as a share of what the business actually takes in. Strong weeks pay more, slow weeks pay less, and it is over when the agreed amount is reached.
What it is
Revenue-based financing, which most funders call a merchant cash advance, is an advance against future sales rather than a loan. The funder provides a lump sum and takes an agreed share of daily or weekly receipts until a fixed total has been repaid. There is no monthly bill; repayment follows revenue.
We take one application to the funders in our network that work this way, bring back their offers side by side, and go through the repayment share and the total with you before anything is signed.
- Amount
- $5,000 to $2,000,000
- Timing
- Typically one to two business days
- Repayment
- A share of daily or weekly sales
- Collateral
- Not usually required
Why it fits
Payments follow revenue
A slow week means a smaller payment. There is no fixed monthly amount to find when sales are down.
Fast to arrange
Funders decide on bank statements and revenue rather than a long underwriting file, so offers come back in days.
No collateral to pledge
The advance is against sales, not against equipment or property.
A fixed total, then done
You repay an agreed amount and the obligation ends. Nothing accrues over time.
Credit is one factor, not the whole file
Funders weigh revenue and cash flow heavily. A thin or bruised credit history does not close the door by itself.
Use it for what the business needs
Inventory, payroll, a repair, a season's stock. The funder does not direct where it goes.
How repayment works
You receive a lump sum
Once you accept an offer, the funder deposits the full amount to the business account.
A share of sales is remitted
Daily or weekly, an agreed percentage of receipts goes to the funder automatically. The exact share is set in the offer.
It ends at the agreed total
When the fixed repayment amount has been reached, that is the end of it. There is no ongoing balance and nothing accruing.
Who it suits
Restaurants and retail
Steady card sales make a share-of-revenue repayment predictable.
Seasonal businesses
Payments shrink in the off season instead of staying flat.
Service businesses
Salons, cleaners, agencies and contractors with regular receipts.
Anyone short on time
When the money is needed this week, not next month.
Questions
About revenue-based financing
Revenue-Based Financing
By the funder, from your average monthly revenue, your industry, how long you have been trading and your cash flow pattern. It is written into the offer, and we go through it with you before you accept.
The share stays the same, so the payment falls with them. A slow week costs proportionally less. What does not change is the total to be repaid.
It depends on revenue and the share. Steady businesses often clear an advance within months; seasonal ones take longer through the quiet stretch. The offer states an estimated term.
No. It is a purchase of future receivables, which is why there is a fixed total rather than an interest rate, and why repayment follows sales. The distinction matters for how it sits on your books; an accountant can advise.
The other ways to structure it
If this was not quite the one, the fit is usually one of these.