A payment that follows your deposits
With revenue-based financing, repayment is tied to what the business takes in. More revenue means more goes toward the balance; less revenue means less. In contrast, a standard installment is fixed. We do not publish rates or terms, since they depend on the business. We can say that funding ranges from $25,000 to $5,000,000, and that it can arrive in as little as 24 hours.
Who it fits in Moreno Valley
The city has a large population base, 208,634 at the 2020 census, and Wikipedia lists a school district serving approximately 35,000 students and a Riverside Community College District campus serving about 6,500. Businesses that orbit schools and colleges know the pattern: busy during the term, quiet during the breaks. Uniform shops, tutoring centers, food vendors, childcare and print shops see this swing every year.
If deposits move with a calendar like that, a payment that moves with deposits is easier to carry. It is a closer match than a fixed schedule built around an average month.
Comparing three repayment shapes
| Shape | Payment behavior | Suits |
|---|---|---|
| Fixed installment | Same each period | Steady income, one project |
| Revenue-linked | Follows deposits | Seasonal or variable revenue |
| Frequent debit (advance) | Same each day or week | Short-term, urgent need |
The merchant cash advance page explains the third in detail.
A worked example (illustration only)
A tutoring center deposits $30,000 in a term month and $12,000 in a break month. If, for illustration, a fixed share of deposits went toward repayment, the center would pay more in the strong month and less in the weak one. A flat payment sized to the strong month would hit hard in the break. These figures are not our terms.
Questions to ask before you choose it
- What share of revenue leaves the account? Work out what that does to your margin on a typical sale, not just to total deposits.
- How long could repayment run in a slow year? A payment that follows revenue also stretches when revenue shrinks.
- Is there a better match? If your revenue is stable, a fixed schedule such as a term loan may be simpler to plan around.
- What will the money produce? Marketing that brings customers, inventory that sells and a hire that adds capacity are all revenue-linked uses, which is where this structure makes the most sense.
Limits to know
It will not fix thin margins, since a share of every deposit leaves the account. It can also be slow to pay down if revenue falls for a long time. Owners with irregular, large invoices may prefer a line of credit. We consider FICO scores of 500 and above, ask for about three months of business bank statements, require no tax returns, and use a soft credit pull on a five-minute application. Sole proprietors can apply. See also working capital or apply here.