Revenue-based financing

Ten questions to ask before you sign: a revenue-based financing checklist.

A good offer survives clear questions. Ask these, get the answers in writing, and compare offers on the same basis.

✓ Checking what you qualify for does not affect your credit score.

What should you ask before signing a revenue-based financing agreement?

Short answer: Ask the total you will repay in dollars, how much will actually be deposited, what share of revenue is collected and how revenue is defined, whether the payment is a true percentage or an estimate, whether there is a minimum payment, what fees apply, whether early payoff is discounted and what counts as default.

Key facts

The cap in dollars, not only the multiple
Net amount deposited after fees
How revenue is defined
Minimum payments and default triggers

The ten questions

What is the total I will repay in dollars? The cap, not only the multiple.
How much will actually be deposited? Any fee taken from the advance reduces what you receive.
What share of revenue will be collected, and how is revenue defined? Total deposits, card sales or a specific source.
Is the payment a true percentage or an estimate? If estimated, how is a reconciliation requested and how fast is it applied?
Is there a minimum payment? It reduces flexibility.
Is there an early payoff discount? Without one, paying early does not save money.
What fees apply to missed or returned payments?
Is a personal guarantee required? Understand what it covers.
Will any registration be made against the business? In Canada, general security is usually registered under provincial personal property security legislation.
What happens if I sell or close the business?

How to compare offers

Put every offer in a simple table: amount deposited, cap, cost in dollars, share, expected months to repay and any minimum payment. The offer with the lowest headline multiple is not always the cheapest once fees are included.

Red flags

Pressure to sign the same day without time to read.
A cap that is not stated in dollars.
Vague answers about reconciliation.
Fees that appear only in the final agreement.
A suggestion to take a second advance to make the first one work.

Get it in writing

Ask for the answers by email or in the agreement itself. If an answer is not in the agreement, assume it does not apply.

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 questions to ask about an RBF offer 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

Payments Canada

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

Common questions

Is it normal to ask so many questions?

Yes. A reputable funder expects them.

What is a PPSA registration?

A public registration of a security interest under provincial personal property security legislation. It is common with business financing.

Should a lawyer review the agreement?

For larger amounts, a review by your lawyer or accountant is sensible.