Revenue-Based Funding Tracker

Revenue-based funding (RBF) tracking in MerchantFlow is the process of monitoring cash advances and financing agreements from providers like Shopify Capital, Clearco, and Wayflyer, so you can see exactly how repayments affect your profit and loss statement. Track original amounts, repayment progress, projected payoff dates, and the true cost of funding on your bottom line.

What Is Revenue-Based Funding?

Revenue-based funding is a financing model where a provider advances cash to your e-commerce business and collects repayment as a fixed percentage of your daily revenue. Unlike traditional loans, RBF has no fixed monthly payment. Instead, repayment speed scales with your sales volume.

Common RBF providers:

• Shopify Capital - Available directly through Shopify admin
• Clearco - Revenue-based financing for e-commerce
• Wayflyer - Growth funding for online brands
• Payability - Marketplace seller advances
• Custom agreements from other providers

Key RBF terms:

• Amount received - The cash deposited into your account
• Fixed fee - The total cost of the advance (expressed as a percentage or flat fee)
• Total repayment - Amount received plus the fixed fee
• Repayment percentage - The share of daily revenue withheld for repayment

How Revenue-Based Funding Tracking Works

MerchantFlow calculates your funding position automatically by combining your agreement terms with your actual revenue data:

1. You enter your funding agreement details
2. MerchantFlow applies your real daily revenue to estimate repayment progress
3. The dashboard shows remaining balance, daily repayment estimates, and projected payoff dates
4. Repayment amounts flow into your P&L so net profit reflects the true cost of funding

How to Access the Funding Dashboard

Navigate to Profit > Funding Impact from the main navigation.

How to Add a Funding Agreement

1. Click Add Agreement
2. Fill in the details:
   • Provider - Shopify Capital, Clearco, Wayflyer, or custom
   • Amount Received - Cash received
   • Fixed Fee % - Fee charged by the provider
   • Total Repayment - Total amount to repay
   • Repayment % - Percentage of daily revenue
   • Start/End Date - Agreement timeline
   • Notes - Optional notes
3. Click Save

What the Funding Status Dashboard Shows

The status view provides a real-time snapshot of all your funding obligations:

• Active Agreements - Number of active funding deals
• Total Repaid - Amount paid back so far
• Total Remaining - Outstanding balance
• Daily Repayment Estimate - Based on recent revenue
• Projected Payoff Date - When agreements will be fully repaid

How Funding Affects Your P&L

Funding repayments are factored into your P&L calculations, showing the true impact of funding costs on your net profit. The daily repayment is calculated based on your revenue and the repayment percentage.

This means your P&L reports reflect the actual cash leaving your business for funding obligations, not just product costs and ad spend.

Best Practices for Funding Management

• Add all active funding agreements for accurate P&L calculations
• Update agreements if terms change or you receive additional funding
• Monitor the "Funding Impact" view regularly to track repayment progress
• Compare the total funding cost versus the revenue growth the funding enabled
• Use the Product Viability Calculator to ensure new products funded by advances will be profitable after repayment costs
• Check your burn rate to understand how funding repayments affect cash runway

Frequently Asked Questions

How does MerchantFlow calculate the projected payoff date?

MerchantFlow uses your recent daily revenue and the repayment percentage from your agreement to estimate how much you repay each day. It then projects forward to determine when the total remaining balance will reach zero. As your revenue changes, the projected date updates automatically.

Can I track multiple funding agreements at the same time?

Yes. You can add as many funding agreements as you have active. The dashboard aggregates all agreements to show your total outstanding balance, combined daily repayment estimate, and individual agreement details.

Does funding tracking work with non-RBF loans?

The funding tracker is designed for revenue-based funding with percentage-of-revenue repayment. For traditional fixed-payment loans, you can record the monthly payment as a recurring expense instead.

How do I know if my funding is costing too much?

Compare the fixed fee percentage to the revenue growth the funding enabled. If the fee is 10% but the funding helped you grow revenue by 50%, the cost was worthwhile. Use the P&L impact view to see how repayments affect your net margin over time.

Related Topics

• P&L Overview - Complete financial tracking
• Expense Tracking - Track all business costs
• Bank Balance - Cash position monitoring
• Product Viability Calculator - Assess product profitability

---

Last updated: March 14, 2026