What is a revenue advance?
A revenue advance is a type of revenue-based finance that provides businesses with fast, flexible funding. Unlike traditional loans with fixed monthly repayments, a revenue advance is repaid based on a percentage of your future sales. This means repayments fluctuate in line with your income—when sales are strong, you pay more; when sales slow down, you pay less.
This type of financing is ideal for businesses with fluctuating revenue, such as seasonal businesses or those experiencing growth but lacking immediate cash flow.
How does a revenue advance work?
A revenue advance is designed to work with your business, not against it. Instead of repaying a fixed amount each month, repayments adjust according to your business’s revenue.
- No fixed repayment schedule – Pay a percentage of your revenue instead of a set amount.
- Repayments align with your income – If sales dip, your repayments decrease.
- Flexible repayment structure – You continue repaying until the advance is fully settled.
For example, if you receive a revenue advance and agree to repay 10% of your monthly sales revenue, and your business generates £15,000 in one month, you will repay £1,500. If the next month your revenue drops to £12,000, your repayment would be £1,200.
How much can I borrow?
The amount you can borrow depends on your business’s revenue. Lenders typically offer funding based on 1 to 2 times your average monthly revenue.
For example, If your business generates an average of £10,000 per month, you could qualify for a revenue advance of £10,000–£20,000, depending on affordability and lender criteria.
Some lenders may also consider factors like business stability, industry type, and future growth potential when determining the amount you qualify for.
What can I use a revenue advance for?
A revenue advance can be used for a variety of business needs, offering the flexibility to invest in growth or cover unexpected costs. Common uses include:
- Boosting cash flow – Cover short-term expenses during slow periods.
- Marketing & advertising – Invest in campaigns to attract more customers.
- Stock & inventory – Purchase new products to meet demand.
- Equipment upgrades – Upgrade tools, technology, or machinery.
- Paying tax bills – Stay on top of HMRC obligations.
- Expanding your business – Open new locations, hire staff, or invest in new services.
Since repayments adjust based on your sales, businesses in retail, hospitality, e-commerce, and other industries with fluctuating revenue particularly benefit from this type of finance.
Is a revenue advance right for my business?
A revenue advance might be a good fit if:
- Your business has a steady revenue stream.
- You want a flexible repayment plan that adjusts to your income.
- You need fast funding without strict collateral requirements.
- Your business relies on card payments or online sales.
However, if your business has unpredictable or inconsistent revenue, a different financing option may be more suitable.
How fast can I get the funds?
One of the biggest advantages of a revenue advance is the speed of funding. If approved, you can typically receive the funds within 24–72 hours, though some lenders may take up to 7 days depending on the application process.
Apply for a revenue advance today
If you're looking for fast and flexible business financing, we can help. We specialise in revenue-based financing, including merchant cash advances - perfect if your business processes card payments through a PDQ terminal.
- Quick application
- Fast approval
- Funds in as little as 24–72 hours
Apply today explore your options and secure the funding your business needs!
