Revenue-based financing
Agencies pay people every two weeks and get paid on thirty- to sixty-day terms. A revenue-based advance follows billings rather than a fixed schedule.
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Short answer: Agencies sell time: payroll goes out on fixed dates while clients pay invoices on terms that often stretch past what was agreed. Revenue-based financing provides working capital repaid as a share of incoming fees, so payments ease when collections slow. Winning a large client often tightens cash first, which is the typical use.
Key facts
Related: Revenue-Based Financing in Canada: How It Works · Revenue-Based Financing Calculator (Canada) · Revenue-Based Financing Cost Examples (CAD) · Revenue-Based Financing Requirements in Canada · Merchant Cash Advance vs Revenue-Based Financing
Marketing, creative, web and digital agencies sell time. Payroll is the dominant cost and goes out on fixed dates, while clients pay invoices on terms that can stretch well beyond what was agreed. Winning a large new client often makes cash tighter before it makes it better, because the team grows before the first invoice is paid.
Retainer revenue is the most valuable part of an agency file because it repeats. Project revenue is lumpier. A reviewer reading the statements will separate the two in their head; a short note listing retainers and their monthly value does it for them.
Many agencies bill clients for advertising and pay the platforms on their behalf. Those dollars move through the account but are not the agency's revenue. Explain the arrangement and, if possible, show the media spend separately so the funder sizes the request on the agency's real margin rather than gross billings.
Revenue-based financing suits agencies with steady retainer revenue and a specific use, such as a senior hire or a new service line. Agencies with large unpaid invoices from creditworthy clients should also compare invoice factoring, which advances against specific receivables. Many agencies use one or the other depending on the season.
Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.
Next step: apply once with a signed application and your last four months of business bank statements. The file is read for rBF for marketing and digital agencies and matched to the structure that fits, whether that is revenue-based financing, a merchant cash advance or a smaller first advance that builds history. Questions first? Call (305) 384-8391.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
Yes. Recurring retainers create predictable deposits, which is exactly what is read.
If the need is tied to a few large unpaid invoices, compare it. If the need is general growth, revenue-based financing is simpler.
It is read closely. One client above roughly a third of revenue is worth explaining, with how long the relationship has lasted.
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.
