Glossary
The percentage of revenue paid toward a revenue-based advance.
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Short answer: A revenue share is the percentage of revenue paid toward a revenue-based advance until the cap is reached. At 8% of $60,000 in monthly revenue, the payment is $4,800. The share decides the monthly cash impact and how fast the cap is repaid, but it is not the cost; the multiple is.
Key facts
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The percentage of revenue paid toward a revenue-based advance.
The share sets how fast the cap is repaid; payments rise and fall with revenue.
It decides monthly cash impact.
At 8% of $60,000 monthly revenue, the payment is $4,800.
Set at funding based on margin and the size of the advance.
Reviewers set the share so payments fit margin.
The share is not the cost; the multiple is.
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.
A share that seems small can still be a large share of profit. A 10% revenue share in a business with a 20% net margin takes half of profit while the advance is outstanding. Check the share against margin, not just revenue.
The share is stated in the agreement as a percentage, often with a definition of the revenue it applies to and how the payment is collected. In your statements it appears as payments that vary with sales, or as a fixed estimated amount with occasional adjustments after a reconciliation.
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 revenue share 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.
Usually it is fixed for the agreement.
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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