Cash Flow & Revenue Loan Calculator

Forecast your repayments for a revenue-based cash flow loan. See how long it will take to repay based on taking a percentage of your daily sales.

Your Business Revenue

$
Your average monthly card or EFT sales.

Loan Terms

$
A rate of 1.25 means you repay $1.25 for every $1.00 borrowed. This replaces a standard interest rate.
%
The percentage of your daily sales automatically deducted to repay the loan.

Estimated Daily Repayment

Deducted automatically from your sales

$0
Total Amount to Repay $0
Total Cost of Capital (Fee) $0
Estimated Time to Pay Off 0 Months

Because repayments flex with your sales, this timeframe is an estimate based on your average monthly revenue remaining steady.

Revenue-Based Financing in Australia

Cash Flow loans (also known as Merchant Cash Advances or Revenue-Based Financing) are a unique type of unsecured business lending. They are specifically designed for retail, hospitality, and eCommerce businesses that process high volumes of credit card or EFTPOS transactions.

How it Works

Instead of borrowing money at an 'interest rate' with a fixed monthly repayment, the lender buys a portion of your future sales at a discount. They give you a lump sum of cash upfront. In return, they automatically deduct a fixed percentage (e.g., 10%) of your daily EFTPOS sales until the agreed total amount is paid off.

Factor Rates vs Interest Rates

Revenue-based loans use a 'Factor Rate' instead of an Annual Percentage Rate (APR). If you borrow $20,000 with a factor rate of 1.2, you agree to pay back $24,000 total. The $4,000 difference is the lender's fixed fee. Because there is no set term (it just takes as long as it takes to collect the $24,000 from your daily sales), you cannot calculate an exact APR, but the equivalent annualised cost is usually very high.

The Big Advantage: Flexibility

The main benefit of a cash flow loan is that it aligns with your revenue. If your cafe has a very slow rainy week and sales drop, your loan repayment for that week automatically drops too. You are never forced to come up with a massive fixed monthly payment when cash is tight.

Related Calculators

Business Loan Equipment Finance Invoice Finance

Read official business finance guidelines at Business.gov.au.

10 Frequently Asked Questions

1. What is Equipment Finance?
Equipment finance (like a chattel mortgage) allows a business to borrow money to buy an asset, using the asset itself as security.
2. How does Invoice Financing work?
Invoice financing lets you borrow money against the amounts due from your customers, freeing up immediate cash flow.
3. What is an Unsecured Business Loan?
A loan that doesn't require collateral. It usually has higher interest rates and shorter terms due to the higher risk for the lender.
4. Can I claim the interest on a business loan?
In Australia, interest incurred on loans used strictly for business purposes is generally tax-deductible. Check with the ATO.
5. What is the instant asset write-off?
An ATO measure allowing businesses to claim an immediate deduction for the business portion of the cost of an asset in the year it is first used.
6. What is a line of credit?
A flexible loan where you are approved for a certain limit but only pay interest on the funds you actually draw down.
7. Are Directors Guarantees required?
Most lenders will require a personal guarantee from the company directors, even for unsecured business loans.
8. What is a Chattel Mortgage?
A commercial loan product where the financier advances funds to purchase an asset, taking a mortgage over it as security.
9. How do lenders assess business loans?
Lenders look at trading history, cash flow, BAS statements, and business credit scores.
10. Does a business loan affect my personal credit?
If you provide a personal guarantee or are a sole trader, defaults will negatively impact your personal credit file.