Funding basics
Revenue-based financing, explained
How funding tied to your sales works, and what it takes to qualify.
Peachtree Capital Group
Revenue-based financing is funding repaid as a percentage of your daily or weekly sales. There is no fixed term and no APR, because it is the purchase of future receivables. Peachtree provides up to $5 million this way.
Why payments move with your sales
Repayment is a set share of revenue. A strong week pays down more, and a slow week pays down less. That is why it suits businesses with predictable or seasonal cash flow.
How it compares with a merchant cash advance
A merchant cash advance is a lump-sum advance against your future receivables. Both are underwritten on your revenue and use a soft credit pull only, and both can be decided in as little as 24 hours.
What you need to apply
- At least $50,000 in monthly revenue
- Six months in business or more
- A credit score of 500 or higher
- Your three most recent business bank statements
Draft written from Peachtree's own site, for their review before it goes live.