Revenue-based financing

Revenue-based financing for young businesses: what changes under a year.

Revenue-based financing needs revenue history. Here is what is realistic for businesses under twelve months, and what to do instead if you are too new.

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Can a young business get revenue-based financing?

Short answer: Sometimes, with less to work with. Revenue-based financing is underwritten on past revenue: twelve months shows a full season, six months shows less and three months very little. Younger businesses can be reviewed, usually for smaller amounts, and seasonal businesses may need to show their slow period first.

Key facts

Twelve months shows a full season
Six months may support a smaller amount
Three months is very thin
Clean, consistent deposits matter most

Why history matters

Revenue-based financing is underwritten on past revenue. With twelve months of statements, a funder sees a full season, can judge consistency and can size a payment confidently. With six months, there is less to read, and seasonal businesses may not yet have shown their slow period. With three months, there is very little.

Younger businesses can be reviewed, but expect smaller amounts, shorter terms and fewer options. The typical Canadian starting point is about twelve months in business and around $20,000 a month in deposits.

What helps a young file

Strong, consistent deposits from the start rather than one big month.
A clear explanation of the business and where revenue comes from.
Prior experience in the same industry, explained in a note.
A specific, modest use for the money.

Alternatives for very new businesses

Futurpreneur offers financing and mentorship for young Canadian entrepreneurs.
BDC and the Canada Small Business Financing Program support start-up and early-stage financing through their own criteria.
Regional development agencies and community futures organizations offer loans in many regions.
Supplier credit, customer deposits and a personal contribution are often the first sources of working capital.

A small first advance repaid on time can build the history needed for larger amounts later.

Timing your application

If you are close to a milestone, such as six or twelve months of deposits, or about to finish your first busy season, waiting a few weeks can noticeably improve the offer.

Where Canadian files usually start

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.

Next step: apply once with a signed application and your last four months of business bank statements. The file is read for rBF for young businesses 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.

Sources and review

Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.

Common questions

Can a three-month-old business qualify?

Sometimes, for a small amount. Options improve with each month of history.

Is a start-up loan better?

For pre-revenue or very new businesses, programs designed for start-ups usually fit better.

Will a declined application hurt me?

A soft review does not affect your credit score. Ask what was missing and when to reapply.