Use case

Marketing and advertising funding: how to size it and what to watch.

Marketing can return multiples of its cost, but only if you can fund it before the revenue arrives.

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

What this looks like

Marketing can return multiples of its cost, but only if you can fund it before the revenue arrives.

A paid campaign, a launch event or a rebrand needs cash before the first sale. Businesses with a clear acquisition cost and a measured return are the best candidates.

How to size it

Fund the campaign you can measure. If a customer is worth $400 and costs $80 to acquire, a request equal to a defined budget is straightforward. If the return is unknown, run a small test first.

Illustrative arithmetic

A subscription box business depositing about $75,000 a month asks for $25,000 for a six-week acquisition campaign. At a 1.2 factor the payback is $30,000, a cost of $5,000. Over roughly 9 months that is about $159 per business day, or close to 4% of monthly deposits.

Total payback: $30,000.
Cost: $5,000.
Payment: about $159 per business day, close to 4% of monthly deposits.

Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.

Which structure tends to fit

Revenue-based financing can match campaign cash flow because the payment follows the revenue it generates. Short advances fit one-off launches.

Where it goes wrong

Unmeasured spend
Seasonal ad costs that spike
Confusing top-line sales with profit

Before you apply

Know your cost to acquire a customer and their value
Set a test budget before scaling
Plan for the lag between spend and revenue

Typical starting points

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.

Common questions

How much should I ask for?

Ask for the amount you can name in dollars and tie to a quote, invoice or schedule. A smaller, specific request is easier to approve and cheaper to repay.

Which structure is best?

It depends on whether the need is a one-time purchase or a recurring gap. See the comparison pages for the trade-offs.

How fast can I get it?

Decisions are often the same day on a complete file, and funding can follow the next business day.