FAQ · Products
What's the difference between revenue-based funding and a business cash advance?
Last updated 2026-04-16
Memorandum · From the underwriting desk
What's the difference between revenue-based funding and a business cash advance?
Both use factor rates and flexible repayment. Revenue-based funding is usually structured as a loan with fixed daily/weekly debits against total business revenue. A BCA is a purchase of future card receivables with daily remittance as a percentage of card settlements. BCAs fit card-heavy businesses; revenue-based funding fits broader revenue profiles.
ICG UnderwritingRef · ICG-REVENU
Practical context
How product selection usually works
The right answer is rarely the biggest approval. It is the product whose repayment structure matches how the business collects revenue, how quickly it needs capital, and how long the capital should stay outstanding.
- Short-term working-capital needs versus long-term expansion
- Fixed payments versus revenue-sensitive remittance
- Whether collateral or invoices change the best-fit product
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