The short answer
Why deposit history matters
Revenue-based financing is repaid from future sales. The funder cannot judge future sales without a record of past ones, so bank statements are the core of the review. Three months of deposits shows whether sales are steady, growing or uneven, and whether the account stays positive.
A business plan, a strong idea or a signed customer list does not replace this. Those things matter later, but for this product the bank statement is the evidence.
Who this fits and who it does not
Fits: a business open roughly three months or more, with consistent deposits near or above $7,500 a month, a clean account and a specific use for the money, such as inventory for a proven product or a second employee for a busy schedule.
Does not fit: a business that has not opened, one with only a few weeks of sales, one whose deposits are mostly the owner's own transfers, or one planning to use the money to cover losses with no path to more sales. Owners in residential remodeling or long-haul trucking should know many funders restrict those industries.
Sole proprietors can apply. What matters is a business bank account showing real customer deposits. For the funding side of this topic, see MFE's young business revenue-based financing page.
Check what your business qualifies for
Merchant Fund Express reviews revenue-based financing for young businesses requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressHow it works for a newer business
Offers for young businesses tend to be smaller and shorter. A funder might offer half to one times a month of revenue instead of the higher end of the 0.5x to 1.5x guideline, then review again once you have a longer track record. Repayment is usually a fixed daily or weekly debit, or a percentage of deposits.
Credit is considered from scores of 500, and stronger credit usually means better pricing. A newer owner with good personal credit may see better terms than one with recent missed payments.
Illustrative example: five months open
Assumptions: a mobile detailing business open five months with steady deposits of about $12,000 a month. Advance of $9,000 (0.75x monthly revenue), factor rate 1.40, a 5% fee, and fixed weekly payments over 24 weeks.
| Item | Amount |
|---|---|
| Advance amount | $9,000 |
| Fee (5%) | $450 |
| Net cash received | $8,550 |
| Total repayment ($9,000 x 1.40) | $12,600 |
| Weekly payment ($12,600 / 24 weeks) | $525 |
| Payment as share of monthly deposits | about 19% ($2,275 / $12,000) |
Illustrative example only. The cost here is $4,050 on $8,550 of usable cash, which is expensive. It only makes sense if the money produces more than that, for example a second van that books jobs you are turning away today.
These figures are illustrations, not offers. Real pricing, amounts and terms depend on the full file.
Funding brings customers. Is your website ready for them?
For a young business, the fastest route to qualifying is more customer deposits, and that starts with being easy to find. Cheap Cheap Websites builds professional sites from $399, with Website Care at $30/month, so a new business can show up in local search before it ever needs outside money.
What pre-revenue owners should do instead
- Use savings or a partner's capital for the first months. It costs nothing in daily payments while you learn what sells.
- Finance equipment against the equipment. Some funders will consider it with a vendor quote, though many want 6+ months in business.
- Look at small local programs such as community lenders or microloans, which are built for early-stage owners.
- Open a dedicated business bank account now and run every sale through it. That account becomes your application later.
- Get customers first. A simple website and map listing usually cost far less than a funding fee and bring in the deposits that qualify you.
What to prepare once you have history
- 3 to 4 months of business bank statements (fewer months limits your options).
- Government ID and a voided business check.
- A short application.
- A one-line use of funds. Read how much revenue funders look for and how long you need to be open before applying.
When waiting is better
If you are at month two with $5,000 in deposits, waiting three or four months often moves you into better offers. Each extra month of clean deposits gives the funder more confidence and you more choices. Waiting is also wiser if the money would cover a gap you cannot explain. Fix the cause first, then fund growth.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.