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Revenue Based Financing

Quick and flexible funding for your business. Get the capital you need to grow and thrive with Advancery's Revenue Based Financing.
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What is a Revenue Based Financing?

Revenue-based financing, sometimes known as Merchant Cash Advances (MCA) is an opportunity provided to small to medium-sized businesses. Funds are advanced against the future revenue of the business, purchased at a discount to their likely value. Payback is made as a percentage of the daily or weekly revenue. Instead of an interest rate and term as with a loan, an MCA is a fixed cost of capital that has a variable time from the daily or weekly remittances as a percentage of revenue until repaid. This enables the business receiving the financing to operate in a healthy manner while repaying the financing.

 
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Why is a Revenue Based Financing the Right Solution??

Why is a Revenue Based Financing the Right Solution?

Businesses have varied needs for capital and at Advancery we focus on growth opportunities. These include expansion of facilities or equipment, purchase of discounted inventory, buffering cash flow due to seasonal spikes, and others. We do not fund ‘bandage’ capital where a business is in trouble.

Revenue Based Financing provide businesses with an alternative to other types of business loans that may be harder to get, such as business lines of credit or traditional bank loans. Revenue Based Financing can be a funding option for businesses that have high credit card sales volume, high daily deposits, need funding quickly, and may not qualify for other business loans. It is also an alternative to selling equity in the small business.

Revenue Based Financing is  extremely flexible, especially in the amount of funding and the payback. A qualified business can usually access capital quickly to cover some of the following use cases:

  • Temporary cash flow. If you’ve had an unexpected downturn in your cash flow and need help covering payroll, utility bills, leases, and other payables, an MCA may be a quick and easy solution.
  • Purchasing inventory at a deep discount. Many businesses that deal with inventory, such as retail, restaurant, or e-commerce businesses, may want to purchase inventory when they can take advantage of significant discounts. This can be particularly helpful when supply-chains are bloated or a distributor is overstocked.
  • Unplanned expenses. If an important piece of equipment has broken or another emergency arises, you can use Revenue Based Financing to cover the cost quickly.
  • Working capital. Getting Revenue Based Financing may be helpful for short-term working capital needs.

If a business has reliable revenue, Revenue Based Financing may be a great short-term or interim financing solution.

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