Glossary
Revenue after returns, discounts and allowances.
✓ Checking what you qualify for does not affect your credit score.
Short answer: Net revenue is gross sales minus returns, refunds, discounts and similar deductions. Gross sales of $100,000 with $5,000 in returns give $95,000 in net revenue. Bank deposits sit close to net revenue, which is why funders read deposits rather than the gross sales figure.
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
Revenue after returns, discounts and allowances.
Net revenue is gross sales minus returns, refunds, discounts and similar deductions.
It shows real sales.
Gross sales of $100,000 with $5,000 in returns give $95,000 net revenue.
Relevant to retail and ecommerce.
Reviewers read deposits, close to net revenue.
High gross with high returns can mislead.
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.
Platform fees, payment processing and shipping are usually treated as expenses rather than deductions from revenue, but marketplaces often pay out net of them. Understand what your payouts already deduct before comparing them with sales.
Net revenue appears on the income statement after returns and allowances. In bank statements, marketplace and processor payouts are often already net of refunds and fees, while direct sales arrive gross. Knowing which is which avoids under- or over-stating revenue to a funder.
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 net revenue 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.
Deposits, which are often net of some deductions.
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.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
