Rushglen Finance, a small-business funding service in Meridian, Mississippi, provides a revenue-based loan calculator for comparing advances. Enter an amount, a factor, a holdback and monthly sales to estimate the total remitted, the cost and the time to remit, with notes on what the estimate leaves out and on businesses with low or no revenue.
At a glance
- Inputs
Advance, factor, holdback share, monthly sales
- Outputs
Total remitted, cost, months to remit
Revenue based loan calculator: how it works in Meridian, MS
The calculator multiplies the advance by the factor to get the total to be remitted, subtracts the advance to get the cost, and divides the total by the monthly holdback (the holdback share times monthly sales) to estimate the months to remit.
Illustration only, invented figures: a $25,000 advance at a factor of 1.3 means $32,500 to be remitted, a cost of $7,500. With a 10% holdback on $40,000 of monthly sales, about $4,000 is collected each month, about 8.1 months in this invented example (our arithmetic).
Revenue based financing calculator: how it works in Meridian, MS
Revenue-based financing calculators work the same way when payments are a share of revenue. Where an agreement uses fixed daily or weekly debits instead, the time to remit is set by the debit schedule, not by sales; use the total remitted and the cost, and ignore the time estimate. Read whether the agreement is a loan or a purchase of receipts.
Using the calculator to compare two advance offers
Run each offer through the calculator with the same monthly sales figure. Write down the total remitted, the cost and the months to remit for each, then add any fees the offer deducts at funding. A smaller advance can still carry the larger total; the factor and the fees decide. Then run a lower sales figure, such as your slowest month last year, and see how the time to remit stretches under each offer before choosing.
Owners comparing an advance with a loan can bring both totals to a call with Rushglen Finance at (601) 236-8419.
Fees, sales swings and other things the estimate ignores
- Fees deducted at funding or charged later
- Changes in sales from month to month
- Reconciliation or adjustment terms
- Early payoff terms, if any
Compare the result with a loan for the same need on the merchant cash advance page, which works an example against a term loan.
Business loans for low revenue: questions Meridian, MS owners ask
A business with low revenue has less to support any payment, whether a loan installment or a holdback. Partners size offers from the revenue the records show. If revenue is low because the business is new or recovering, explain why and show the trend; a smaller amount sized to current deposits may fit better than a larger one.
Business loans for pre revenue: Lauderdale County, MS owners
A business with no revenue yet has nothing for a revenue-based product to be sized against, and the six funding shapes on this site are reviewed against an operating business's records. Pre-revenue funding for a startup is outside what this site covers. Once the business has deposits to show, the calculator becomes useful.
Asking for a business loan without revenue in Meridian, MS
Funding partners review revenue, so a request without revenue is hard to place. The request form asks for annual revenue as a range for that reason. If revenue is real but irregular, bring the statements that show it and describe the pattern; the request form and the guides page explain what else to gather.
By Rushglen Finance ยท Updated