Revenue-based financing

Revenue-based financing requirements: what a Canadian file needs.

Revenue-based financing is qualified on the business's revenue first. Here are the typical starting points and what moves a file up or down.

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What are the requirements for revenue-based financing in Canada?

Short answer: Revenue-based financing is underwritten mainly on what the business earns, not on hard assets. Funders look for enough revenue to carry a payment set as a share of it, typically from around $20,000 a month, enough operating history to show a pattern, usually about twelve months, and an account managed without frequent overdrafts.

Key facts

Around $20,000 a month in revenue
About twelve months of history
Few overdrafts or negative days
Credit is one input among several

The short list

Revenue-based financing is underwritten mainly on what the business earns, not on hard assets. A funder wants to see enough revenue to carry a payment set as a share of it, a business that has operated long enough to show a pattern, and a bank account that is managed without frequent overdrafts. Credit matters, but it is one input among several.

Factor	Typical starting point	What strengthens it
Monthly revenue	Around $20,000 in deposits	Growth over several months
Time in business	About 12 months	A full year that shows the season
Account health	Few low-balance or negative days	A cushion after fixed costs
Credit	Scores from 500 considered	600 or higher opens better offers
Existing advances	Reviewed case by case	Payment history on the current one

What moves a file up

Revenue that is steady or rising rather than falling.
Revenue spread across many customers rather than one.
Gross margins that leave room for a payment.
A specific, sensible use for the money.
Clean statements with business and personal spending kept separate.

What moves a file down

Frequent negative days or returned payments in recent months.
A sharp recent drop in revenue without an explanation.
Several existing advances already taking a large share of deposits.
Unfiled tax obligations or unpaid remittances that could lead to collection action.
Deposits that cannot be tied to the business, such as transfers from personal accounts.

Industry and location

Eligibility varies by industry and by funder. Most operating Canadian businesses can be reviewed. Some industries need extra review because of regulation or how their revenue behaves. Businesses in every province and territory can apply; the file is read the same way regardless of where the business is located.

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 requirements in Canada 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

Financial Consumer Agency of Canada: Credit reports and scores

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

Common questions

Is there a minimum credit score?

Scores from 500 are considered. A score of 600 or higher opens more options and better pricing.

Can a business under one year qualify?

Sometimes, with a smaller amount and fewer options. Twelve months of history is the typical starting point.

Do I need collateral?

Revenue-based financing is not secured by specific property the way a mortgage is, though agreements may include general security registrations and personal guarantees. Read the agreement.