Questions owners actually ask
How much business funding can I actually get?
For revenue-based funding, the usual starting point is a fraction of one month of deposits. Here is the arithmetic, and what moves the number up or down.
The most common rule of thumb for revenue-based funding is that an offer starts somewhere around 50% to 100% of one month of bank deposits, then moves up or down from there. It is not a formula any funder is bound by, but it is the right mental model.
Working the arithmetic
| Average monthly deposits | Typical opening range |
|---|---|
| $20,000 | roughly $10,000 - $20,000 |
| $50,000 | roughly $25,000 - $50,000 |
| $100,000 | roughly $50,000 - $100,000 |
| $250,000 | roughly $125,000 - $250,000 |
Note the word deposits. Not revenue you invoiced, not what the P&L says: money that arrived in the business bank account.
What moves it up
- Longer time in business
- Consistent deposits month to month rather than spiky ones
- No negative days
- No existing positions
- Stronger personal credit
- All revenue running through a single account
What moves it down
- Existing advances taking daily payments
- Recent NSFs
- Highly seasonal revenue, where the quiet months set the ceiling
- An industry a funder treats as higher risk
- Very low ending balances
Different products, different maths
- Equipment financing is sized by the equipment, not your deposits, so it can be much larger.
- Invoice factoring is sized by your outstanding invoices and your customers' credit.
- A line of credit gives a limit rather than a lump sum, and you pay only for what you draw.
The question worth asking instead
Not "how much can I get" but "how much can the business comfortably repay". Take the likely payment, daily or weekly, and check it against your slowest month rather than your best one. If it only works in a good month, the amount is too high.
Run it through the calculators before you accept.
Questions owners ask
Can I get more than one month of revenue?
Sometimes, with long time in business, strong consistency and no existing positions. It is the exception rather than the norm.
Does my credit score set the amount?
For revenue-based products it influences pricing more than size. Deposits set the size.
What if my revenue is seasonal?
Expect underwriting to weight the slower months. Six or more months of statements helps, because it shows the whole cycle rather than a snapshot.
Related
- Will applying hurt my credit?
- What is a factor rate?
- What lenders see in your bank statements
- Funding with an existing MCA
- Why was I declined?
- How fast can I get funded?
- What documents do I need?
- What credit score do I need?
- Can they take my house?
- What is a UCC filing?
- Can I pay off an MCA early?
- What if I miss a payment?
- Under a year in business?
- What is a holdback rate?
- Tax lien or judgment?
- Is my industry restricted?
- What does a broker charge?
- Why 3 different offers?
- Do I need collateral?
- Will they call my customers?
All business funding options › · Calculators ›
General information, not financial or legal advice. Terms vary by lender and business.