Glossary
The fixed total repaid under revenue-based financing.
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Short answer: A repayment cap is the fixed total repaid under revenue-based financing: the advance times a multiple. A $40,000 advance at 1.20 has a $48,000 cap, and once payments reach it, the agreement is complete. Check whether fees and minimum payments sit inside or outside the cap.
Key facts
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The fixed total repaid under revenue-based financing.
The cap equals the advance times a multiple. Once payments reach it, the agreement is complete.
It fixes the cost in dollars.
A $40,000 advance at 1.20 has a $48,000 cap.
Common in Canadian revenue-based financing agreements.
Reviewers compare caps across offers.
A lower multiple is not cheaper if fees sit outside the cap.
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.
Because the cap is fixed, two offers with the same advance can be compared directly by their caps. If one offer has a lower cap but a fee deducted at funding, add the fee back to compare fairly.
The cap appears in the agreement as the total amount purchased or the total repayment amount, sometimes alongside the multiple used to calculate it. In your bank statements you will see the advance arrive and then regular payments; adding those payments up and comparing them with the cap tells you exactly how much remains.
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 repayment cap 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.
Not under normal terms.
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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