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Revenue Based funding

Revenue Based funding covers a Merchant Cash Advance (MCA) and a Business Line of Credit (BLOC). The money comes from a lending partner, not from your client’s personal credit cards or term loans. The partner pays you a referral fee, so there is no client invoice on this path.
SBA loans are not offered yet. An SBA product never appears in Product Decisions, and the Revenue Based estimate never includes one.

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Who qualifies

Underwriting checks each product on its own. A client can qualify for MCA, BLOC, both, or neither.

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The estimate

Open the client’s Product Decisions panel and click Add Annual Revenue. Enter the business’s exact annual revenue and click Save Annual Revenue. Saving re-runs underwriting with that number. The estimate is 8–12% of annual revenue. For $600,000 a year, that is $48,000 to $72,000. The same range shows on MCA and on BLOC, and Total Estimated Funding counts it once, not once per product. SBA never gets an estimate. Without annual revenue on file, the Revenue Based products show no dollar estimate.

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Start the workflow

In Product Decisions, select MCA, BLOC, or both, and confirm. The Revenue Based workflow then appears on the client’s Funding tab. It has four steps.

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1. Review & approve underwriting

This step checks itself off when underwriting is approved. Click Send Upload Link. The link asks the client for the last 4 months of business bank statements, which is what both lending partners need. See Document upload links.

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3. Submit file to lending partner

Click Open Submission. The dialog shows the one partner this file goes to. Which partner gets the file. The split is monthly revenue: The app uses the revenue band from the client’s business questionnaire first, then the Avg Monthly Revenue on the client’s record. When neither settles it (for example, the record says $50,000–$100,000), the dialog asks Is the business’s monthly revenue $75,000 or more? Confirm with your client and pick an answer. One-time setup. The first time you send a file to a partner, the dialog asks you to sign up with that partner and paste your client application link. You do this once per partner. You can change it later under Settings → Lender Integrations. Each partner’s page explains where to find the link. Send the file. After setup, the dialog shows:
  • How to submit: that partner’s instructions.
  • Deal package: the last 4 months of business bank statements.
  • Client application link: click Email application link to client, or copy the link and send it yourself.
Tick the box that says you sent the link and the deal package, then click Mark Submitted & Complete Step. The step can only be completed from this dialog. From here the partner works the file with your client.

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4. Record commission payment received

When the partner pays your referral fee, click Log Payment.

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Record the commission

This app does not record the payment for you. Record it in the CRM:
  1. In the CRM’s Payments area, create an invoice for the partner’s referral payment.
  2. Record it as a manual payment, so it shows as paid.
  3. Note the CRM transaction reference and which partner paid.
Then click Mark Recorded in the Record commission payment dialog. That only checks off the workflow step.

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Record the outcome on the Funding tab

The workflow tracks your steps, not the deal’s result. To show what the partner approved, open the client’s Funding tab and use the MCA or BLOC section of the funding plan:
  1. Click Add in the matching section.
  2. Enter the lender and the amount.
  3. Set the status as the deal moves: Not Started, In Progress, Applied, Approved, Declined, or Completed.
Approved amounts count toward Total Funded. See Funded breakdown.

Lexington Capital

The Revenue Based partner for businesses under $75,000 a month.

Sandbar Fund

The Revenue Based partner for businesses at $75,000 a month or more.

Document upload links

Send your client a secure link to upload their bank statements.

Funded breakdown

See how approved amounts add up to Total Funded.