Glossary
Predictable revenue billed every month.
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Short answer: Monthly recurring revenue is the predictable revenue billed every month from active subscriptions or retainers. 120 customers paying $250 a month is $30,000 in MRR. Funders check that bank deposits roughly match the MRR claimed, so count only revenue that is actually billed and collected.
Key facts
Related: Business Funding Glossary: 70 Terms Explained · Factor Rate Explained: How MCA Pricing Works · What Business Funding Costs in Canada, Compared · Business Funding Comparisons for Canadian Owners · Business Funding Calculators in Canadian Dollars
Predictable revenue billed every month.
MRR is the monthly value of active subscriptions or retainers.
It signals revenue stability.
120 customers paying $250 a month is $30,000 MRR.
Used by SaaS, subscription and service firms.
Deposits should roughly match reported MRR.
Bookings are not MRR until billed and collected.
Glossary terms are most useful next to the decisions they affect. If you are comparing offers, read the pages on factor rates, payback amounts and the repayment cap together. If you are preparing an application, the documents checklist and requirements pages explain what is read. And if a term in an agreement is unclear, ask the funder to explain it in writing before you sign; a good funder will.
Healthy MRR grows through new customers, upgrades and low churn. Investors and funders often look at net MRR growth: new and expansion MRR minus churned and downgraded MRR.
MRR lives in your billing or subscription software, not in your bank statements directly. Deposits from your payment processor, net of fees and refunds and delayed by payout schedules, are how MRR becomes cash. A reviewer compares those deposits with the MRR you report to check the two tell the same story.
Most funding terms come back to two questions: how much will I repay in total, and how will each payment affect my cash in a normal month and a slow one. When you meet an unfamiliar term in an offer or agreement, translate it into those two answers before deciding whether it matters. If a funder cannot explain a term in plain language and with your own numbers, treat that as useful information about the offer.
These terms often appear alongside monthly recurring revenue (mrr) in offers, agreements and conversations with funders:
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
They read deposits; MRR summaries add context.
See the related guides and the comparison pages, or apply and ask.
No. It is educational information, and agreements vary.
Educational information only. It is not legal, tax or accounting advice.
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