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Revenue Advance Loans Explained


Alternative funding methods, such as revenue advanced loans, can be an effective method of freeing up cash flow and helping your company reach its full potential. By allowing a business access to future funds, revenue advance loans can supply companies with a consistent income allowing them to plan effectively for the future.

What Are Revenue Advance Loans?

Based on past income, revenue advance loans essentially free up future earnings to allow you to reinvest or cover seasonal downtimes that certain sectors can go through.

Because the loan does not incur fixed interest rates or monthly capital repayments, the loan can be easier to manage and plan your resources around. Each repayment is based on your income, which avoids putting extra strain on your business during less productive periods.

Pros of Revenue Advance Loans

There are many advantages that certain businesses can utilise in regards to revenue advanced loans. These can include:

  • Confidence In Planning
  • Potentially Less Risk
  • Reinvestment Opportunities
  • Ease Of Use

Confidence In Planning

Because many business loans have hidden charges and unpredictable costs, this can lead to a degree of uncertainty. Revenue advance loan fees are agreed upfront, allowing a business to plan their future investments with confidence.

revenue advance loans

Potentially Less Risk

As repayments are agreed in advance and relate to your earnings, risk of losing the business’s physical assets can be greatly reduced. In most cases your business does not shoulder the risks associated with other types of loans.

Reinvestment Opportunities

The advantages of reinvestment are at the heart of the revenue advance loan. Freeing up cash flow that may otherwise be forever delayed can make an enormous difference to any business. What might not be quite as apparent, however, are the opportunities afforded to a company to bulk buy supplies and stock at cheaper rates. This can, over time, help cut down on running costs significantly.

Ease Of Use

Because the loan can be relatively easy to obtain once accepted and funds are quickly made available, this method of loan financing can be of great benefit to those that need to access future funds promptly. This can be for various reasons such as investment opportunities or debt management.

Cons of Revenue Advance Loans

Revenue advance loans are not designed to suit all business models, sectors and sizes. It is important that you understand the practices to ascertain whether this method of borrowing is right for your particular venture.

Issues can include:

  • Low Rate Of Acceptance
  • Expense
  • Future Revenue

Low Rate Of Acceptance

Revenue advance loans are not technically loans, instead you are borrowing your own future earnings. This means that the lender will require you to have a well-established business model. Those whose income tends to be less predictable may also be deemed unsuitable for this type of loan.


Depending on your business and the contract you sign with the lender, revenue advance loans can be expensive, partly because they are usually seen as a short term solution. This must be weighed up against the possible reduction in risk and the predictability of repayments.

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Future Revenue

Although it is regarded as one of the least risky loan options, relying on future income does come with some degree of risk. This is why those that offer the service are careful when assessing potential clients.


There are many loan options available to a company, which is best suited to you will depend on a number of factors.

Traditional bank loans need to follow strict charge limits that, although can carry risk, are generally set at lower rates.

Fixed term loans need to be paid back at a previously set time. Repayments can be weekly, monthly or paid in one go at a set date. These can carry risk, but can also work out cheaper if you are confident your business’s income is able to cover it.

Invoice financing is another method of borrowing from your own income. Instead of predicting future earnings, however, you can sell the value of your invoices for a percentage of their worth. This is typically around 85% of its value. Once your client has paid the invoice the factoring company will release the other 15% of its value, minus service charges.

Relevant Businesses

Each loan method is designed to suit the different needs of various businesses. Revenue advanced loans are often well suited to those with a reliable income that need to borrow money in the short term to free up cash flow. These are usually small businesses with a well-established practice.

Businesses whose income is predictable but seasonal, such as service industries in tourist areas, are often well suited to revenue advanced loans as they can access future funds to maximise their potential during busy periods.


There are many reputable and disreputable providers of revenue advance loans available, so it can be beneficial to research the subject thoroughly. We believe these are just some of the most highly regarded loan companies in the UK:

  • Ashley Business Finance
  • Capify
  • Liberis

Ashley Business Finance

For over 20 years Ashley Business Finance have provided small and medium sized businesses cash flow solutions and financial support. A system that is both efficient and reliable is at the heart of their success and as one of the most popular loan providers to small businesses in the UK, they have built up a sizeable client base.


Founded during the financial crisis in 2008, Capify have quickly carved out a reputation for being a reliable lender with a dependable and transparent practice. Now a worldwide financial service, they also offer a variety of repayment methods to suit most circumstances.


Simplicity is the main selling point of Liberis’s financial solution model and sporting such a large client base, they are clearly highly regarded. Thanks to their tried and tested approach, many small and medium sized businesses have benefited from their revenue advanced loans and other financing options.

Expert Market is a trading name of Marketing VF Limited, which is an appointed representative of Resolution Compliance Limited (FRN: 574048) ) which is authorised and regulated by the Financial Conduct Authority. Marketing VF Limited is registered in England and Wales. Company number: 06951544. Registered office: Imperial Works, Block C, Perren Street, London, NW5 3ED, United Kingdom.