Revenue-Based Financing
Market Direct Capital helps businesses access private revenue-based financing sized to actual sales. Instead of a fixed amortization, remittances are aligned to monthly revenues, which can ease cash flow during slower periods and accelerate payoff during stronger periods.
Where revenue-based financing fits
Useful when speed and flexibility matter more than long-term bank terms, or when collateral is limited.
- Working capital: Hiring, inventory, marketing, and vendor deposits.
- Growth initiatives: New product launches, territory expansion, or customer acquisition.
- Bridging timing gaps: Seasonality, receivables timing, or short project cycles.
- Complement to other credit: Use alongside a line of credit or equipment facility.
Typical structures
Structures vary by industry, margins, seasonality, and historical revenue trends.
- Remittance method: Fixed daily or weekly amounts, or percentage-of-revenue remittances.
- Term range: Commonly 6 to 18 months, with early payoff options case by case.
- Use of funds: Broad working capital purposes with simple documentation.
- Security: Often unsecured or limited-collateral; guarantees may be requested.
What lenders review
Private capital providers underwrite the full picture to size a responsible facility.
- Revenue trends: Recent monthly sales, seasonality, and customer concentration.
- Margins and cash flow: Ability to support remittances under normal conditions.
- Bank activity: Average balances, deposit patterns, and NSFs if any.
- Business profile: Years in business, industry stability, and management experience.
- Credit profile: Useful for pricing and structure; subprime considered case by case.
Process
We keep documentation concise so decisions arrive quickly and terms remain clear.
- Read-out: Goals, timing, recent sales, and brief financial snapshot.
- Packaging: Lender-ready summary and requested statements or reports.
- Approval: Confirm remittance approach, term, and any covenants.
- Funding: Clear closing steps and transparent repayment tracking.
Related programs
- Equipment financing for purchases, refinance, or sale-leaseback.
- Private real estate loans for facilities or collateral support.
- Private non-bank SBA 7(a) when long-term amortization is the goal.
- MCA to SBA transition for borrowers under daily or weekly pressure.
Quick checklist
- ✔ Recent monthly revenue and trends
- ✔ Three to six months of bank statements
- ✔ Brief financials and use of funds
- ✔ Any seasonality notes or contracts
Advantages of revenue-based capital
- Speed: Fast evaluation and funding.
- Flexibility: Remittances that reflect revenue cycles.
- Simplicity: Concise documentation and clear terms.