How is revenue-based finance different from a merchant cash advance?

Both use a factor rate rather than an APR. The main differences are scope and remittance: an MCA typically sweeps from card-sales daily, while revenue-based finance is often calculated on total monthly revenue and remitted monthly. RBF providers also tend to look at SaaS, e-commerce and subscription businesses where MCAs focus on card-heavy retail and hospitality.

Why does the calculator show an implied months to repay?

Because the repayment scales with actual revenue, there is no fixed schedule. The implied months figure assumes monthly revenue stays at the level you entered. If revenue grows you repay faster; if it dips you repay slower and the schedule extends.

Is the factor rate the same as an APR?

No. A factor of 1.20 means you repay £1.20 for every £1.00 advanced — that is fixed at signing, regardless of how long repayment takes. APR is a time-based rate. Repaying a factor-priced advance faster does not reduce its cash cost.

Calculator · Revenue-based finance

Revenue-based finance cost calculator

Revenue-based finance (RBF) is a lump-sum advance repaid as an agreed share of monthly revenue, priced at a fixed factor rate rather than an APR. It is most common in SaaS, e-commerce and subscription businesses with predictable monthly revenue. This calculator models the cost shape: the total repayable, the indicative monthly remittance at your current revenue, and how many months it would take to clear if revenue held flat.

Advance amount

Cash advanced up front against future revenue.

Factor rate1.20

Multiplier on the advance. 1.20 means you repay £1.20 for every £1.00 advanced.

Monthly revenue

Average monthly turnover the share will be applied against.

Agreed share of revenue10.0%

Percentage of each month's revenue swept until the total repayable is cleared.

Indicative outputs

Total repayable: £48,000.00
Total cost: £8,000.00
Indicative monthly repayment: £6,000.00
Implied months to repay: 8.0 months

Illustrative — revenue-based finance is not APR-priced. The repayment scales with actual revenue: in a strong month you repay more and clear faster; in a quiet month you repay less and the schedule extends. Caps on minimum monthly remittance, true-ups and provider-specific fees are not modelled here.

How to read these numbers

Total repayable: Advance amount multiplied by the factor rate. This is the full amount the provider sweeps before the agreement ends — fixed at signing, regardless of when you clear it.
Total cost: Total repayable minus the original advance — the cash you pay for the facility.
Indicative monthly repayment: Monthly revenue multiplied by the agreed share. In a strong month you repay more; in a quiet month you repay less.
Implied months to repay: Total repayable divided by the indicative monthly repayment. Assumes revenue stays flat — it almost never does, so treat this as a planning sanity check.

Assumptions and limits

Flat monthly revenue — real revenue moves with seasonality, churn and growth, so the implied months figure is illustrative only.
No minimum monthly remittance, true-ups or top-up mechanics — many real RBF facilities apply these.
No origination, documentation or platform fees that some providers charge on top of the factor.
No early-settlement discount. Factor-priced facilities typically have no rebate for paying faster.
Indicative only. Real facilities are priced and approved by the provider after underwriting, including revenue verification.

FAQs

How is revenue-based finance different from a merchant cash advance?: Both use a factor rate rather than an APR. The main differences are scope and remittance: an MCA typically sweeps from card sales daily, while revenue-based finance is often calculated on total monthly revenue and remitted monthly. RBF providers also tend to look at SaaS, e-commerce and subscription businesses, where MCAs focus on card-heavy retail and hospitality.
Why does the calculator show an implied months to repay?: Because the repayment scales with actual revenue, there is no fixed schedule. The implied months figure assumes monthly revenue stays at the level you entered. If revenue grows you repay faster; if it dips you repay slower and the schedule extends.
Is the factor rate the same as an APR?: No. A factor of 1.20 means you repay £1.20 for every £1.00 advanced — that is fixed at signing, regardless of how long repayment takes. APR is a time-based rate. Repaying a factor-priced advance faster does not reduce its cash cost.

Decide if revenue-based finance fits

The calculator gives you the cost shape of an RBF advance. The eligibility checker tells you whether RBF is a sensible product family for your trading profile, or whether a term loan or invoice finance would likely look at your case instead.

Check eligibility Compare finance types

Important — educational guidance only

Not regulated by the FCA and not a credit broker.
Not financial, legal or tax advice.
Not a loan offer and not a guarantee of approval.
Subject to lender underwriting — criteria can change.

Lendrly provides general eligibility guidance only. It is not financial advice, a loan offer, or a guarantee of approval. Provider criteria can change and final approval is subject to lender underwriting, affordability checks, credit assessment, and documentation. Lendrly is not a regulated credit broker; we do not submit applications on your behalf.