We provide RBCA amounts from $5,000 – $1,000,000 with terms between 6 – 60 Months, at rates between 1.14 – 1.50% interest. Originally, revenue-based loans / Merchant Cash Advance were designed as a lump-sum payment for businesses in exchange for a specific percentage of future sales. Now, RBCA are more commonly used to describe an array of financial options for small businesses. This newer type of business loan allows you to ‘sell’ a portion of your company’s revenue in exchange for an advance of capital. So, instead of paying back a fixed amount each month, as you might do with a traditional loan, you pay the lender an agreed percentage of your monthly sales until the advance, including interest, is paid off in full.

RBCAs are typically characterized by shorter payment terms and smaller payments in comparison to traditional bank loans. Both RBCA and Merchant Cash Advances can also be used when working capital is insufficient to meet ongoing expenses and there is future income that can be leveraged against receivables. RBCA loans are great for business owners with limited time in business and limited collateral.

About the author

Millennium Capital is a multi strategy Private Equity, and Capital Advisory firm dedicated to helping businesses succeed with a full range of strategic finance services making both direct investments in operating companies as well as partnering with other private equity, venture capital firms, banks, and our strategic network of investors to provide long-term and short term financial solutions.