Revenue-based financing

The revenue share percentage: how big each payment is.

The multiple decides how much you repay. The revenue share decides how fast. Here is how to think about it.

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

How does the revenue share percentage work?

Short answer: The revenue share is the percentage of revenue paid toward the cap each period. At 8% of $70,000 in monthly revenue, the payment is $5,600; if revenue drops to $50,000, it drops to $4,000. A higher share repays sooner, a lower share takes longer but leaves more cash each month. Neither changes the total cost.

Key facts

Payment = revenue × share
Higher share: faster repayment
Lower share: more cash each month
The cap, not the share, sets the cost

What it does

The revenue share is the percentage of revenue paid toward the cap each period. If the share is 8% and the business earns $70,000 in a month, the payment that month is $5,600. If revenue drops to $50,000, the payment drops to $4,000.

A higher share repays the advance sooner; a lower share takes longer but leaves more cash each month. Because the cap is fixed, neither choice changes the dollar cost unless the agreement includes early payoff terms.

Choosing a comfortable share

Start from your gross margin. A business with a 30% margin has far less room than one with a 70% margin.
Subtract existing obligations, including any other advance.
Check the payment in your slowest month, not your average month.
Leave room for reinvestment, which is often the point of taking the money.

How shares relate to time

Share	Monthly revenue	Payment	Months to repay a $36,000 cap
5%	$60,000	$3,000	12
8%	$60,000	$4,800	7.5
10%	$60,000	$6,000	6
12%	$60,000	$7,200	5

How revenue is measured

Agreements define revenue differently. Some use total deposits; others use a specific source such as card settlements or platform payouts. Some estimate revenue and reconcile later. Know which definition applies and how a reconciliation is requested if your revenue falls.

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 the revenue share percentage 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.

How do you choose the right share?

Compare it with your margin. The share should leave enough of each month's revenue to cover costs and keep growing. A business with a 15% net margin will feel a 12% share much more than one with a 35% margin.

Then test the slow month. If a share of 10% leaves the account thin when revenue falls by a third, ask for a lower share and accept a longer repayment period.

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

Can I negotiate the share?

Often, within limits. A lower share usually means a longer repayment period.

What if my revenue falls a lot?

The payment falls with it. If an agreement uses an estimated fixed payment, ask how reconciliation works.

Is the share the same as the cost?

No. The cost is set by the multiple. The share sets the speed.