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Revenue-based line of credit

A limit you can draw against and pay back as the month allows, sized against what actually goes through your account.

Amount
Up to $500,000
Term
Revolving

When it fits

  • Revenue is seasonal, or lumpy, and the problem is timing rather than total.
  • You want cover for a slow month without borrowing for the whole year.
  • Payroll lands before the receivables do.

When it does not

If you know the number and the date, a term loan is usually cheaper: a facility you keep open has a cost even in the months you do not use it.

What it looks like

What arrives
A limit. You draw what you need, when you need it
What leaves
Repayment on what you have drawn, not on the limit
The limit
Reviewed against revenue — it moves as the business does
Term
Revolving: it stays open while it is in good standing

What people spend it on

  • Payroll in the week before the receivables land
  • Stock for a season you can already see coming
  • A quiet month that you know is one month
  • Keeping supplier terms rather than stretching them

Pick this over a term loan when the problem is timing, not total. You only pay for what you draw.

How to get one

Five steps. About ten minutes, most of it finding your statements. One file goes to the lenders most likely to fund it — you don't apply four times.

  1. 1Make an accountBusiness email, name, phone, password. Two minutes.
  2. 2Answer eleven short questionsWhere you trade, what you turn over, how much you need. It saves as you type.
  3. 3Send six months of bank statementsPDFs from your bank. This is the part underwriters read.
  4. 4Add your paperwork and verify your IDIncorporation documents, the owners, and a photo of your licence.
  5. 5Send itMost decisions come back within one business day.

How the four compare

You don't have to pick. Send one application and we come back with the one that fits. Here's how they differ.

AmountTermSecured on
Term loans$5,000 – $2,000,0006 – 60 monthsUsually none pledged; a personal guarantee is common
Revenue-based line of creditUp to $500,000Revolving—
Asset-based lending$50,000 – $2,000,000Revolving or fixedRegistered against the assets it is advanced on
Equipment financing$10,000 – $1,000,00012 – 72 monthsThe equipment itself

What it costs

In dollars, before you sign. The amount. The total you'll repay. The payment. How many payments. Multiply the last two and you're back at the total — that's the whole of it.

No rate to compound out yourself. No fee that shows up in month four. If a number on an agreement isn't obvious, call us before you sign it. That's what we're for.

How this kind of money is priced →Reading an offer line by line →
An approved Spark application: the approved amount of $55,000, and a terms card showing total payback $69,300, a weekly payment of $1,333, and 52 payments.

An approved application. Amount, total payback, payment, number of payments — the four figures, before anything is signed.

What we need to place it

The same file whichever of the four it turns out to be. Most of the ten minutes is finding the statements, which is why it is worth doing first.

See what you qualify forNo hard credit pull · a decision in one business day

Questions

That depends on the facility, and the honest answer is that some carry a fee for being open and some do not. It is the first thing to ask about any line you are offered.

Still deciding? Talk to a specialist — no application required.