Revenue Based Finances

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A key issue with traditional business loans is the nature of the repayment structure. Fixed monthly payments do not offer flexibility for businesses with variable cashflow. Many industries go through busy and slow periods, making it difficult to qualify for traditional loans. Revenue Based Finance can be a great option if your company experiences inconsistent revenue.

Revenue Based Finance is similar to a Merchant Cash Advance, except it is not just limited to businesses with large volumes of debit and credit card sales. Businesses with enough revenue can qualify for large amounts of funding and receive longer terms. Revenue Based Finance is often one of the easier funding solutions to qualify for, and even easier to repay.

What is Revenue Based Finances?

Revenue Based Finance, or a “Business Cash Advance” as it is sometimes called, is a form of funding where your business receives a lump sum of money based on it’s total monthly revenue. You are able to repay this with daily, weekly, or monthly payments. These payments are calculated based on your business’s total sales volume, not just debit and credit card sales - as is the case with a Merchant Cash Advance.

How Does Revenue Based Finance Work?

The funding amount you are eligible for is based on your business’s total monthly revenue. This allows you to receive more money than a Merchant Cash Advance which only looks at your debit and credit card sales.

Your repayment structure will be based on your business’s cash flow, and could take the form of daily, weekly, or monthly payments. Depending on your repayment frequency, a factor rate will be applied to calculate your payment amount. These payments will increase/decrease as your revenue fluctuates, until you have repaid the full amount within the given term.

What Are The Benefits of Revenue Based Finance?

Revenue Based Finance enables businesses to take advantage of their recent growth. You can secure larger funding amounts if your revenue has increased significantly over the past several months. This also means that your business’s credit score and annual revenue will not play a role in your approval process.

Another unique benefit of Revenue Based Finance is the repayment structure. Payments are not fixed, they fluctuate proportionally to your revenue. This is useful for seasonal businesses or for any business with an unexpectedly slow month. They would have access to their Revenue Based Financing during the slow months, and not have to pay back the majority of the debt until a busier season or a rise in sales.

Unlike a Merchant Cash Advance, Revenue Based Finance is not just for businesses with high volumes of debit and credit card sales. All payment methods including checks, bank transfers, cash, and others are included when calculating your funding amount and terms.

Revenue Based Finance usually offers longer terms than Merchant Cash Advances, because it’s repayment structure is on a flexible schedule, be it daily, weekly, or monthly.

What Are The Downsides of Revenue Based Finance?

Revenue Based Finance is often times a business’s last resort when they cannot qualify for other more traditional options like Business Lines of Credit or Business Term Loans.

When a business has poor credit, it increases the likelihood they will default, so products like Revenue Based Finance and Merchant Cash Advances have higher rates. Between the two, Revenue Based Finance is usually more costly due to it’s larger funding amounts and longer terms.

Who Qualifies for Revenue Based Finance?

Approved businesses generally met the following criteria:

Annual Revenue: $120K+
Credit Score: 525+
Time In business: 4 Months+

How To Apply

Our application process is fast and easy, taking just a few minutes to complete, and funds can appear in your bank account in as few as 1-2 business days from approval. Here is how to apply:

Step 1: Contemplate Your Needs

Before you apply, make sure that the funding program is the right solution for your business's needs. Consider whether you will be able to use the funds for your desired purpose, and if the repayment structure is conducive to your cash flow. Take your time to determine the amount of funding your business will most benefit from.

Step 2: Collect Your Documents

Here is what you will need to submit with your application:

A valid driver’s license
1 voided business check
Past 4 months of bank statements
Past 4 months of credit card processing statements

Step 3: Fill Out Our Online Application

To start the application process, give us a call or fill out our short online application. We will ask you to provide some basic information, along with your desired funding amount.

Step 4: Speak to a Representative

Once you apply, a representative will reach out to you, so make sure you have all your documents ready from 'Step 2'. The representative will explain the repayment structure, rates, and terms you qualify for. This will ensure that there are no surprises or hidden fees during repayment. Once you decide, you will be given a final application to submit along with your documents.

Step 5: Receive Approval

If you’ve been approved, you’ll hear back from us within 24 hours. Funds should then appear in your bank account in 1-2 business days.

What If I’m Declined?

Your application may be declined if your business’s cash flow is insufficient at the time of your application. This product places an emphasis on monthly revenue, so applicants with strong sales in the previous 4 months are more likely to receive approval than those without. You may also be asked to provide statements going back farther, even from a previous year.

In some cases, we may conclude that taking on more debt would do more harm than good for your business. In this case, we might recommend a different, more affordable business financing tool. At Signet Capital Group, we can help you explore your options and point you in the direction of the most sensible choices.

Complete the application

Fill out some basic information about your business for a quick decision

Approval in less than 2 hours

We match you with a funding solution that best fits your needs

Same-day funding

Be approved and get the funds transferred to you in as little as 2 hours