Revenue-based finance: funding that follows your sales

A different way of measuring your business

Banks look backwards at tax returns. Revenue-based financiers look at what’s coming through your payment terminal or online checkout. If your sales are steady, that data can support funding even when other parts of your story, such as a short history or an industry restriction, led to a decline elsewhere.

How it works

1. You connect your sales data, through your payment provider, point-of-sale system or ecommerce platform.
2. The provider assesses your recent takings: volume, consistency and trends.
3. You receive a lump sum.
4. Repayments are deducted as a share of future sales, or as a fixed amount, until the agreed total is repaid.

When sales are strong, you repay faster. When they dip, repayments shrink and the term stretches.

Who it suits

Business type	Why it can fit
Cafés and restaurants	Daily card takings, often restricted by banks
Retail shops	Steady terminal sales
Online stores	Platform sales data
Hair, beauty and wellness	Frequent card payments
Hospitality venues	Strong but seasonal takings

It suits less well if most payments come by invoice or bank transfer, or if sales are very irregular. For invoice-based businesses, see invoice finance instead.

Questions to ask before you sign

• What’s the total amount I’ll repay, in dollars? This is the most important number.
• Is it a percentage of sales or a fixed amount?
• What happens if sales drop sharply, or stop?
• What if I change payment providers?
• Are there fees for early repayment?
• Is this a loan, or a purchase of future receivables?

Get the answers in writing. Compare the total cost with what the funds will achieve.

The stacking problem

Revenue-based products are easy to obtain, which makes it tempting to take more than one. Several facilities each taking a slice of daily sales can leave too little for wages, rent and stock. Stacked facilities are also one of the most common bank statement red flags that lead to later declines. If you already have one or two, think carefully before adding another, and consider whether a single longer-term facility would serve you better.

Want to see whether your sales could support funding? Start a short enquiry.

Alternatives to compare

• Bank statement loans: fixed repayments, assessed on account deposits.
• Unsecured lines of credit: draw and repay as needed.
• Property-secured loans: usually cheaper per dollar for larger amounts if you own property.

Illustrative example: A small bakery-café had been declined by its bank because of the bank’s hospitality limits. Its card takings were steady across the year. A revenue-based provider advanced funds for a new oven, repaid as a share of daily card sales, with repayments easing in the quieter winter months.

How does revenue-based finance compare with a fixed-repayment loan?

The biggest difference is how repayments behave when trade changes. A fixed-repayment loan asks for the same amount every week or month, whether you’ve had a record Saturday or a washed-out fortnight. Revenue-based finance flexes. That flexibility is the main reason owners in seasonal or weather-dependent trades find it appealing.

Feature	Revenue-based finance	Fixed-repayment unsecured loan
Repayment amount	Moves with sales (for percentage structures)	Set in advance
Repayment term	Stretches or shortens with trade	Fixed
Main assessment	Card and platform sales history	Bank statements and turnover
Cost visibility	Total repayable is the key figure	Repayment schedule shows the total
Best for	Daily card trade with seasonal swings	Steadier income with predictable deposits

Flexible doesn’t always mean cheaper. Because the term can stretch, it’s tempting to focus only on the size of each deduction. Instead, always compare the total dollars repayable on each option against the amount you receive.

Is your sales data ready for an assessment?

Providers usually connect directly to your payment processor, point-of-sale system or ecommerce platform. Before you apply, it’s worth checking a few things yourself:

• Is most of your trade going through one provider? Splitting sales across several terminals or platforms can make your volume look smaller than it is.
• Are refunds and chargebacks under control? A high refund rate can reduce the amount offered.
• Are there gaps? A month with the terminal offline, or a switch between providers, should be explained.
• Is the account in the business’s name? Sales running through a personal account are harder to assess.

A clean, consistent sales record over several months is what unlocks the best offers. If your recent sales have been disrupted, a few steady months often makes a real difference.

Quick checklist before you accept an offer

• Confirm the total amount repayable in dollars.
• Check whether repayments are a percentage of sales or a fixed amount.
• Ask what happens if you change payment providers or close a sales channel.
• Find out whether early repayment reduces the total cost.
• Make sure the deduction leaves enough daily cash for wages, rent and stock.
• Check how many sales-based facilities you already have before adding another.

Let your takings do the talking

Steady sales can open doors that paperwork closed. Our enquiry takes about a minute and doesn’t trigger a credit check. Your details aren’t handed around a group of providers, and a real person reads your situation and calls you. Please include your average monthly card or online sales and any existing sales-based facilities, so we can match you properly. See if you qualify.