Contract types:
- Revenue Purchase Agreement
- Short-term loan agreement with revenue-linked repayments
Usual terms:
- Factor rate (discount): 1.2x – 1.5x
- APR equivalent: 8% – 30% (varies based on revenue trajectory)
- Period: 3 – 12 months
- Amount: 1k – 500k (€ or £)
- Repayments: Flexible, daily or weekly % of card sales
- Collaterals: Usually no collaterals, the purchased revenue can be considered as a soft collateral (asset being “purchased” under a Revenue Purchase Agreement) but legally this is not a collateral
Usual eligibility criteria:
- Monthly card revenue: 5k – 10k (€ or £) minimum
- Business operating for 6+ months
- Majority of payments through POS terminals or online payment processors (e.g., Stripe, Shopify, PayPal)
Merchant Cash AdvanceCard salesdaily salesecommerce