CONSIDER THE WHOLE PICTURE
Revenue-based financing
Explore an advance with a clear understanding of the terms.
HOW IT WORKS
Revenue-based advances and merchant cash advances provide business capital in exchange for an agreed amount or share of future receipts. They can have different pricing and repayment mechanics from a conventional loan.
Where it may fit.
- Evaluate a time-sensitive business funding need
- Consider funding linked to business receipts
- Compare an advance with other available financing paths
LOOKING AT THE WHOLE PICTURE
Fit matters as much
as funding.
We focus on the total amount to be remitted, fees, collection frequency, reconciliation provisions and the effect on business cash flow. The structure may be costly, and overlapping advances can increase payment pressure.
See how we workA LITTLE MORE CLARITY
Your questions,
thoughtfully answered.
Is an advance priced like a traditional loan?
Not necessarily. A factor rate or specified purchased amount is not directly equivalent to an annual interest rate. Review the total cost, expected duration and payment mechanics.
Will the payment always adjust with revenue?
That depends on the contract, including any reconciliation process. Do not assume payments automatically adjust; the agreement needs to be reviewed carefully.
Further reading: FTC guidance on small-business financing.
A PERSONAL CONVERSATION
Let’s discuss revenue-based financing.
Start with your plans. We’ll help you understand the next step.
Begin a conversation