Answers

Can a startup get revenue-based financing in Canada? A plain answer.

Only if it already has revenue. Revenue-based financing is repaid from revenue and underwritten on its history, so pre-revenue startups do not qualify. Startups with several months of consistent deposits can sometimes get a small first advance; most early-stage companies are better served by grants, programs for new entrepreneurs or equity.

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Can a startup get revenue-based financing in Canada?

Key facts

No revenue means no revenue-based financing
Typical starting point: around 12 months and $20,000 a month
Six months of steady deposits may support a smaller offer
Futurpreneur, BDC and IRAP serve earlier stages

The revenue requirement

Revenue-based financing has no meaning without revenue to share. Funders look for a pattern of deposits over several months, with the typical starting point around twelve months in business and $20,000 a month. A startup with six months of steady, growing deposits may get a smaller offer. A pre-revenue company will not.

Better fits for early companies

Futurpreneur, for entrepreneurs aged 18 to 39, combining financing with mentorship.
BDC, which has start-up financing and advisory services.
The National Research Council's IRAP for technology development.
SR&ED tax credits for qualifying research and development.
Regional development agencies and community futures organizations.
Angel investors and venture capital for high-growth companies.

Getting ready for later

Open a dedicated business bank account from day one.
Keep revenue consistent and visible.
Avoid mixing personal and business spending.
Track monthly revenue and margin so you can explain your growth.

Where Canadian files usually start

Monthly revenueTypically from around $20,000 a month in deposits for Canadian files. The exact line varies by funder and by file.

Time in businessTypically about 12 months. Newer businesses can be reviewed, but the options narrow.

Account healthLimited low-balance or negative days. Funders read the last few months of bank statements for this.

CreditScores from 500 are considered. A score of 600 or higher opens more options and better offers.

DocumentsA signed application and recent business bank statements, typically the last four months.

Existing advancesFiles with an existing advance can be reviewed, including second position.

If your question is about your own file rather than the general rule, the fastest route to a specific answer is a review. Send a signed application and your last four months of business bank statements, mention this question in a note, and the response will address it directly. You can also call (305) 384-8391 and ask before applying; there is no cost to ask.

Questions owners ask next

How can a young company prepare for its first offer?

Run every sale through one business bank account from day one, keep personal spending out of it and avoid long gaps with no deposits. Six to twelve months of clean, growing deposits is the record a reviewer needs.

In the meantime, use the programs built for your stage, such as founder financing and research grants, and track monthly revenue in a simple sheet. When you apply, the trend will speak for itself.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

How much history do I need?

Typically about twelve months, though some files are reviewed with six.

Can I use projections?

No. Revenue-based funders read actual deposits.

What about SaaS startups with early MRR?

Early MRR helps; consistency over several months is what qualifies.