The Biggest Factor is Your Average Monthly Revenue
No One Is Perfect, and Every Investor is Unique.
Strengths can compensate for areas requiring improvement.
Investment Offer = Average Monthly Revenue × Risk Factors
Your average monthly revenue is the baseline for how investors calculate your offer. Investors want to see a record of consistent revenue reinforced by a strong financial profile and long business history.
For example if you average $100,000 a month the formula is:
Investment Offer = $100,000 * Risk Factors
Investors consider the following Risk Factors
- Payment History
- Cash Flow
- Payment Capacity
- Seasonality
Risk Factors can increase your baseline offers by 150% or decrease the offer to 40%
Cash Flow
Investors look at your cash management habits as well as your revenue.
- Do you maintain positive balances?
- Are there frequent overdrafts or negative days?
- How much is your average daily balance?
A clean, stable account gives investors confidence. A balance always near zero or bouncing payments signals higher risk and lowers the offer.
Payment Capacity
To ensure you are capable of paying them back. Investors calculate a retrieval rate, which is typically 10–20% of your gross sales. The retrieval rate directly influences the length and frequency of the offered terms.
Investors see additional loans or MCAs as additional risk. If you’re already paying off debt your new offer will likely be smaller — unless your business has recently grown or paid off an older position.
Seasonality
A steady upward trend in deposits or card sales can justify a larger investment. A declining trend usually caps the offer size or requires additional verification.
Note: Investors Respect Seasonality
Provide context alongside additional bank statements or other financial documents.
Payment History
Experience matters. The longer you’ve been in business (especially 12 months or more), the more likely investors are to get higher offers at better terms.
Many investors will offer better terms and larger approvals if you’ve successfully paid off an MCA or previous investment and have documents to prove it.
The Bottom Line
Investors don’t invest in numbers — they invest in you.
Investors will compete to invest in you when you show consistency, growth, and responsibility.
If you want to find out how much your business qualifies for today, or get a customized plan to increase your offer amount, schedule your free consultation with an investment advisor today.
How To Maximize Your Investment Offer
- Maintain consistent monthly revenue
- Avoid overdrafts and returned payments
- Keep records of successful Zero-Balance Letters
- If you have debt, ensure the payoffs are manageable
- Provide context for any temporary downturns or other cashflow issues
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