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Revenue-based financing Canada: the payment moves with your revenue.

A fixed repayment multiple, taken as a percentage of revenue. When a month is strong you repay faster; when it is slow the payment shrinks.

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How revenue-based financing works

You receive an amount and agree to repay a fixed multiple of it, for example 1.2 times. Each month a fixed percentage of revenue goes toward that total. There is no calendar term: the faster revenue comes in, the sooner it is repaid.

Because the percentage is fixed and the revenue is not, the payment adjusts itself. That is the practical difference from a fixed daily debit.

Worked example

An online retailer in Vancouver takes $40,000 at a 1.2 multiple, repaying 8% of monthly revenue.

Total to repay: $40,000 × 1.2 = $48,000.
At $60,000 of monthly revenue the payment is $4,800, so it repays in about 10 months.
If revenue falls to $42,000 the payment falls to $3,360 and repayment stretches to about 14 months.
If revenue rises to $78,000 the payment is $6,240 and repayment takes about 7.7 months.

Who it fits

Ecommerce, subscription and software businesses with recurring or digital revenue.
B2B companies whose deposits are regular even if they are not card-based.
Seasonal businesses that want the payment to ease off in the slow months.

Typical starting points

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.

What to check

Is the payment a true percentage, or a fixed amount with a revenue label?
Is there a minimum monthly payment?
How is revenue measured: bank deposits, platform payouts or both?
What is the total multiple in dollars?

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Common questions

Is it a loan?

It is a funding structure repaid from revenue. The practical point is the same: you receive money now and repay a known total.

Does the payment really change?

In a true revenue-share structure, yes. Confirm that it is a percentage and ask whether a minimum applies.

What if revenue stops?

Repayment pauses in effect because the percentage of nothing is nothing, but check the agreement for minimums and default terms.

Is it cheaper than a merchant cash advance?

Not by default. Compare total payback in dollars on each, and compare how each behaves in a slow month.