Steps to Apply:
1
Quick Application:
Complete our simple online form and receive swift approvals.
2
Explore Choices:
Compare various options to find the ideal solution for your needs.
3
Personalize Your Terms:
​Choose the options that best suit your business objectives.
4
Get Funding:
Access funds within a few business days for most programs.
Get the Best Small Business Loan for Revenue-Based Financing
​At Merchant Pro Funding, we offer flexible Revenue-Based Financing solutions designed to grow with your business.
Need help? Reach out to us:
Email: CS@merchantprofunding.com
Tailored Business Loans with
Revenue-Based Financing
One of the most significant flaws of traditional small business loans is the repayment terms. Fixed monthly payments can be challenging for businesses with fluctuating revenue due to seasonal trends or industry-specific cycles. Many companies cannot qualify for traditional bank loan products for this exact reason. Consistent revenue isn't always possible when your industry experiences busy and slow seasons. If this sounds like your business, Revenue-Based Financing may be the right financing product for your needs.
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Revenue-based business loans are easy to qualify for and, depending on your sales volume, even easier to pay back. This unique product is similar to a merchant cash advance, but it's not just for businesses with high debit and credit card sales volumes. You can also access higher borrowing amounts and longer terms.Revenue-based business loans are easy to qualify for and, depending on your sales volume, even easier to pay back. This unique product is similar to a merchant cash advance, but it's not just for businesses with high debit and credit card sales volumes. You can also access higher borrowing amounts and longer terms.​
In this guide, we will answer the following questions and more:
What Is Revenue-Based Financing?
Revenue-based financing is sometimes called a "business cash advance" or "revenue-based business loan." This financing option provides a lump sum based on your monthly revenue. Unlike traditional loans with fixed monthly payments, revenue-based loans allow for payments that fluctuate with your sales volume. Payments can be scheduled daily, weekly, or monthly, based on the lender's structure. This flexibility makes revenue-based financing an excellent option for businesses with inconsistent or seasonal revenue streams.
Max Funding Amount:
$5K – $5M
Factor Rates:
Starting at 1-6% p/mo
Term:
3 – 24 months
Speed:
1-2 Business days
Revenue-based financing offers more flexible requirements than traditional loans. Instead of relying on credit scores, approvals are based on recent sales performance. Here's how it works:
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Determine Borrowing Limit: The lender evaluates total monthly revenue to calculate the borrowing amount.
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Set Repayment Terms: A fixed percentage of sales (capture rate) is deducted at each repayment interval—daily, weekly, or monthly.
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Adjust Payments Based on Sales: Payment amounts fluctuate with sales volume, ensuring payments remain manageable during slower revenue periods.
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Complete Repayment by Deadline: While payments adjust to sales, borrowers must repay the loan in full within the agreed-upon term.
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Reports on Revenue-Based Loans
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22% of small businesses received funding from an online lender in 2023, up from 17% in 2020. (Source: 2023 Small Business Credit Survey)
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The global alternative financing market was valued at $6.57 billion in 2021 and is expected to reach $10.61 billion by 2030, with an annual growth rate of 6.17%. (Source: Straits Research)
How Does Revenue-Based Financing Work?
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Flexible Payments: Payments fluctuate with your revenue, so you're not overburdened during slow periods.
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Accessible for Businesses with Poor Credit: Lenders emphasize recent sales performance rather than credit scores.
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Higher Borrowing Potential: Borrowing limits can be higher than merchant cash advances due to total revenue evaluation.
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Longer Terms: Revenue-based loans often carry longer repayment periods than merchant cash advances.
What Are The Advantages of Revenue-Based Business Loans?
What Are The Disadvantages of Revenue-Based Business Loans?
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Higher Costs: Rates and fees are typically higher than traditional loans due to the risk involved.
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Debt Risks: Businesses with significant debt may face difficulties managing additional repayments.
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Limited Availability: Lenders require consistent recent revenue performance for approval.​
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Business Term Loans Compared To Other Product
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Loan Types
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Max Amounts
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Rates
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Speed​
Merchant Cash
Advances
$7.5K - $1M
​Starting at 1-6% p/mo
1-2 business days
Receivables/Invoice Financing
$10K - $10M
Starting at 1% p/mo
1-2 week
SBA Loan
​
$50K - $5.5M
Starting at Prime + 2.75%
8-12 weeks
Equipment
Financing
Up to $5M per piece Starting at 3.5% (SBA)
3-10+ business days
Business
Term Loan:
$10K - $5M
Starting at 1-4% p/mo
1-3 business days
Revenue-Based Business Loans
$10K - $5M
Starting at 1-6% p/mo
1-2 business days
Business
Line of Credit
$1K - $250K
Starting at 1% p/mo
1-3 business days
Approved businesses generally meet the following criteria:
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Annual Revenue: $120K+
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Credit Score: 525+
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Time in Business: 4 months+
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Who Qualifies For
Revenue-Based Financing?
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Step 1: Assess Your Needs:
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Consider how much funding you need and whether the repayment terms align with your cash flow.
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Step 2: Gather Documents:
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Driver's License
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Voided business check
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Bank statements (last 3 months)
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Step 3: Submit Application:
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Apply online or over the phone, providing necessary documents and funding requirements.
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Step 4: Discuss Terms:
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A representative will outline terms, rates, and repayment structures.
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Step 5: Receive Approval:
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If approved, funds are typically deposited within 1-2 business days.
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How To Apply For
Revenue-Based Financing:
If your application is declined, it may be due to inconsistent recent sales or excessive existing debt. UCS can help you explore alternatives, such as:
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Business Credit Cards: Ideal for managing short-term expenses.
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Personal Loans: Easier to qualify for and usable for business needs.
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Credit Repair Services: Improve your credit profile for future financing.r future applications.
What If I'm Declined For
Revenue-Based Financing?
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