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RBF · Quebec
Revenue-Based Financing in Quebec
Short answer
Revenue-based financing for businesses in Quebec typically ranges $25,000 – $2,000,000, funds in 2 – 7 business days, and is priced at repayment cap of 1.1x – 1.5x the advance. Usual minimums are 6 – 12 months in business and a credit score of Revenue-driven; AIDBIZ matches Quebec businesses with funding partners for this product with no hard credit pull to apply.
Across Quebec, revenue-based financing is sized for Montreal’s aerospace, technology and restaurant economy, some of the lowest big-city rents in Canada, decreed construction wages and a French-language business culture under the federal criminal-rate cap. Capital repaid as a fixed share of revenue until a set cap is reached, so payments rise and fall with sales.
$25,000 – $2,000,000Typical amount
2 – 7 business daysPublished timing
Revenue-drivenCredit guideline
Until a fixed repayment cap is reachedTerm
Local funding context
Why Quebec businesses consider revenue-based financing
Quebec requests for revenue-based financing come from aerospace and manufacturing suppliers around Montreal, technology, gaming and creative vendors in the Mile End and downtown, restaurants and bars in a city with one of North America’s densest dining scenes, contractors working within the CCQ’s decreed system, trucking and logistics companies serving the port and Autoroutes 20 and 40, healthcare and dental practices across the province, Quebec City’s insurance, government and tourism vendors and the aluminum, forestry and agricultural businesses of the regions.
Costs are a mix. Montreal commercial rents are among the lowest of any large Canadian metro and provincial credits for manufacturing and research are generous, but the minimum wage is $16.10 and indexed, GST plus 9.975 percent QST apply, QPIP and CNESST premiums add to payroll, construction wages are decreed and Bill 96 imposes French-language requirements on signage, contracts and workplaces that businesses from outside Quebec must plan for.
Quebec has no commercial financing disclosure law. The Consumer Protection Act and the Civil Code’s lesion rules protect consumers and individuals, not businesses, though the Civil Code’s good-faith and abusive-clause provisions can reach commercial contracts, and the federal criminal interest rate — 35 percent APR since 2025, with commercial loans above $10,000 exempt up to 48 percent — is the only hard cap. Quebec owners should insist on the total repayment amount, an annualized cost, the term, the payment schedule and prepayment terms in writing, in French where required, and compare offers on dollars repaid.
The Business Development Bank of Canada is headquartered in Montreal and serves the province from regional offices, the Canada Small Business Financing Program runs through Desjardins and the banks, Investissement Québec offers loans and guarantees, Canada Economic Development for Quebec Regions funds regional projects and the local development centres, the Fonds locaux de solidarité and Futurpreneur add counselling and small loans.
Quebec’s small-business map runs from Old Montreal, downtown and Griffintown, the Plateau and Mile End, Saint-Laurent boulevard and Little Italy, the Saint-Laurent and Anjou industrial belts and the aerospace corridor around Trudeau airport and Mirabel, north to Laval and the Laurentians, south to Longueuil and the Montérégie’s agriculture, east along Autoroute 20 through Trois-Rivières to Quebec City’s Old Town, Grande Allée and Sainte-Foy and Lévis’s Desjardins headquarters, up to the Saguenay’s aluminum economy and west to Gatineau’s federal offices across from Ottawa.
Revenue-based financing in local practice. In Quebec, manufacturers with direct-to-consumer channels use RBF for inventory; B2B manufacturers lean on factoring; restaurants with strong delivery-platform and card revenue use a revenue share that eases during slow weeks. Contractors rarely fit RBF because revenue is lumpy and invoiced rather than transactional.
What to evaluate
- Underwriting emphasizes trailing revenue and deposit consistency
- Payments are structured around an agreed share of revenue
- Published timing is 24–72 hours after approval
- The structure does not require giving up business equity
| Region | Signature sectors | Funding pattern |
|---|---|---|
| Montreal | Aerospace and manufacturing suppliers, technology and gaming vendors, restaurants, construction, port logistics | Equipment and PO financing for suppliers; lines and factoring for vendors; working capital for restaurants; equipment for carriers |
| Quebec City and Lévis | Provincial government, Desjardins and insurance, tourism, technology | Lines for vendors; seasonal capital for hospitality |
| The Saguenay, North Shore and Abitibi | Aluminum, hydro, forestry, mining suppliers | Equipment financing, factoring tied to industrial terms |
| Eastern Townships, Mauricie and Gatineau | Manufacturing, agriculture, federal contractors | Equipment loans, seasonal working capital, factoring |
How it works
How revenue-based financing works
Revenue-based financing (RBF) advances a lump sum in exchange for a fixed percentage of future monthly revenue, remitted until the business has paid a predetermined cap, typically 1.1 to 1.5 times the advance. There is no fixed maturity: a strong sales month accelerates repayment, a weak one slows it. The structure was popularised by software and e-commerce investors and has spread to any Quebec business with predictable, trackable revenue.
Providers underwrite from data rather than paperwork. Many connect directly to your bank account, payment processor, marketplace or subscription-billing platform to see trailing revenue, churn, seasonality and gross margin. The revenue share, commonly 3% to 10% of monthly receipts, is set so the cap is reached within a target window, usually 6 to 24 months, based on your recent run rate.
RBF is not equity: you give up no ownership and no board seat. It is also not a bank loan: there is no APR in the contract, though several states now require providers to disclose an estimated annual rate. For a Quebec business the practical question is whether the revenue share leaves enough gross margin to fund operations while the cap is being paid down.
Qualification
Qualification guidelines for revenue-based financing in Quebec
Published market guidelines, not AIDBIZ approval rules; a Quebec business weak in one row can often still qualify when the others are strong.
| Criterion | Typical guideline | Why it matters |
|---|---|---|
| Monthly revenue | $15,000+ recurring or predictable revenue | The revenue share must be meaningful and sustainable |
| Time in business | 6 to 12 months of revenue history | Providers need enough data to model seasonality |
| Gross margin | Healthy margins preferred (often 40%+ for e-commerce and SaaS) | A revenue share is paid from gross profit |
| Credit score | Revenue-driven; 550+ typical | Score is secondary to platform and bank data |
| Data access | Read-only connection to bank, processor or platform | Automated underwriting depends on live data |
| Existing obligations | Manageable; multiple daily-debit advances are a red flag | Total remittance load must fit inside the margin |
Secure eligibility check
Fast Funding Review
Share a few details about your Quebec business and the revenue-based financing amount you have in mind to start a confidential, no-obligation review. This step does not use a hard credit pull.
- No hard credit pull to apply
- Decisions typically in 24–72 hours
- 5+ years in the industry
- Encrypted, private document handling
Cost structure
Revenue-based financing cost: caps, revenue share and a $225,000 example
The cost is the difference between the advance and the repayment cap. Published caps range from 1.10x to 1.50x. A lower cap is usually offered to businesses with stable, higher-margin revenue and a longer track record; higher caps go with volatility, thin margins or fast expected repayment. Some providers also charge an origination fee, so ask for the net amount funded.
Worked example for Quebec: on a $225,000 advance, a 1.10x cap means total remittances of about $247,500; a 1.50x cap means about $337,500; the midpoint is roughly $292,500. If the revenue share were set so the cap is reached in 12 months, the average monthly remittance would run from about $20,625 to $28,125. Because the remittance is a percentage of sales, the actual monthly figure will move with your revenue, and repaying faster than expected raises the effective annual cost while paying slower lowers it.
Compare RBF with a term loan by converting both to total dollars repaid over a realistic period. If your Quebec business expects revenue to grow quickly, the fixed cap becomes costly on an annualised basis; if revenue is seasonal or uncertain, the flexibility can be worth the premium.
Payment estimator
Estimate revenue-based financing payments for a Quebec business
Illustrative revenue-based financing figures for $225,000 using published market ranges. Actual offers depend on underwriting and the funding partner.
| Scenario | Estimated payment | Total payback | Basis |
|---|---|---|---|
| Lower end of range | $20,625 / month | $247,500 | 1.10x |
| Midpoint | $24,375 / month | $292,500 | 1.30x |
| Upper end of range | $28,125 / month | $337,500 | 1.50x |
Fit
Where revenue-based financing fits for Quebec businesses
Best uses
- Inventory ahead of a peak season
- Paid advertising with a measured return
- Launching a new product line or location
- Hiring sales or delivery staff ahead of demand
- Bridging a seasonal trough without a fixed payment
- Growth capital without giving up equity
Watch-outs
- Fast growth means faster, costlier repayment on an annualised basis
- Caps are fixed regardless of how quickly you repay
- Some providers require read-only access to sales platforms
- Revenue share is taken from gross receipts, before expenses
- Not available to businesses without trackable, recurring revenue
Best for: E-commerce, subscription and seasonal businesses that want payments to flex with sales.
Documents
Data and documents for a revenue-based financing application
Having these ready is the biggest factor in hitting the published 2 – 7 business days timing in Quebec.
- 6 to 12 months of business bank statements or a live bank connection
- Read-only access to your payment processor, marketplace or subscription platform
- Government-issued ID for owners
- Formation documents and EIN
- A summary of existing financing and remittance schedules
- Year-to-date profit-and-loss for larger amounts
Timeline
The revenue-based financing timeline
Receive a term sheet
The offer states the advance, cap, revenue-share percentage and any fees. Published timing to funding is 2 to 7 business days.
Model the remittance
Apply the share to your best, average and worst months from the past year to see what the debit would look like in each.
Sign and set up remittance
Remittances are drawn by ACH from your bank account or split at the processor level, weekly or monthly depending on the provider.
Repay to the cap
Remittances continue until the cap is reached; many providers offer follow-on rounds once a share of the first is repaid.
Alternatives
Alternatives to revenue-based financing in Quebec
Compare the products a Quebec business is most likely to be offered alongside revenue-based financing; each guide below sets out structure, timing, credit guidelines and uses side by side.
Line of credit vs revenue-based financingA line of credit is cheaper for businesses that can repay draws quickly and qualify on credit.Merchant cash advance vs revenue-based financingAn MCA funds faster and accepts weaker files, but usually costs more and remits daily.Revenue-based financing vs working capitalA working-capital loan has a fixed schedule and a known end date, which some owners prefer.Invoice factoring vs revenue-based financingFactoring suits invoiced B2B revenue; RBF suits card, platform and subscription revenue.
Common questions
Revenue-based financing in Quebec: what owners ask
How is revenue-based financing different from an MCA?
Revenue-Based Financing can support businesses with consistent revenue seeking performance-linked payments. The exact structure, eligible use, documentation, and terms depend on underwriting and the selected offer.
How quickly may revenue-based financing close?
The published guideline is 24–72 hours, but complete documents, verification, underwriting, and partner capacity determine actual timing.
Is revenue-based financing only for software companies?
The published credit guideline is 550+. It is not an approval guarantee; revenue, time in business, cash flow, existing obligations, and product rules also apply.
Does Quebec require disclosure of the total cost of revenue-based financing?
No. The Consumer Protection Act and the Civil Code’s lesion rules protect consumers and individuals, not businesses; the federal criminal interest rate (35 percent APR, commercial exemption to 48 percent above $10,000) is the only cap, so ask each provider in writing for the total repayment amount, an annualized cost, the term, the payment schedule and prepayment terms, in French where required.
Which Quebec industries use revenue-based financing most?
Aerospace and manufacturing suppliers, technology and gaming vendors, restaurants and bars in Montreal and Quebec City, contractors, trucking and logistics companies, healthcare and dental practices and the industrial, forestry and agricultural businesses of the regions.
Where can Quebec businesses get free help before applying?
BDC’s Montreal head office and regional centres, the local development centres and PME MTL, Investissement Québec, Canada Economic Development for Quebec Regions, the Fonds locaux de solidarité, Futurpreneur and the Fédération des chambres de commerce du Québec.
How is revenue-based financing different from a merchant cash advance?
Both remit from revenue, but RBF is usually sized from total monthly revenue with a monthly or weekly share, longer expected repayment and platform-based underwriting, while an MCA is typically smaller, daily-remitted and priced from bank statements alone. Caps and factors overlap at the low end.
Does revenue-based financing dilute ownership?
No. It is a financing contract, not an equity investment. You keep full ownership and control; the provider’s return is the cap.
What if revenue drops sharply?
Remittances fall automatically because they are a share of receipts. Most contracts have no fixed maturity, though some include a minimum payment or a long-stop date, so read for those terms.
Is AIDBIZ a revenue-based financing provider?
No. We are funding specialists with 5+ years in the industry. We match Quebec businesses with RBF partners, compare caps, shares and fees across offers and explain how each would behave over your actual seasonal pattern.