Revenue-Based Financing for Moving Companies
With revenue-based financing, a moving company receives a lump sum and repays a fixed share of monthly revenue, so the payment grows in the busy summer months and shrinks in winter. Movers put it toward a truck, a storage warehouse or a commercial moving line ahead of summer, rather than a winter payroll that's already short.
What do movers use revenue-based financing for?
Trucks before the busy season
Summer brings the year's heaviest booking calendar, and the trucks, crews and equipment have to be ready before it starts.
Storage space
A warehouse with storage vaults adds monthly storage revenue that keeps coming in during the slow months.
Commercial and office moves
Office relocations bring larger jobs on weekdays and weekends, and they need crates, dollies and trained crews first.
How the remittance moves in January
Here a moving company averages $100,000 a month, takes $40,000 and owes $53,200 in total, remitted at 9% of revenue.
| Month | Revenue | Remittance at 9% | Remittance as a share |
|---|---|---|---|
| An average month | $100,000 | $9,000 | 9.0% |
| January, the slowest | $94,400 | $8,500 | 9.0% |
| July, the busiest | $108,500 | $9,760 | 9.0% |
January costs $8,500 instead of a fixed sum; the cap is reached in something like 6 months. Per BLS, used household and office goods moving (NAICS 484210) employ the fewest people in January (94.4 on a 100 average) and the most in July (108.5).
Why does a percentage payment suit summer-heavy moving revenue?
Moving revenue peaks in summer and around month-end and drops in winter. A fixed daily debit takes the same amount in the slowest week as in the busiest. A percentage of monthly revenue follows the season, so the payment is lighter exactly when bookings thin out.
What providers look at
Monthly revenue across the full year, the split between residential, commercial and storage, deposits taken ahead of moves, and how much revenue depends on a few large jobs.
Which moving-company terms should you confirm?
- Whether customer deposits for future moves count as revenue when received.
- The repayment cap, plus any monthly floor that applies in the winter months.
- How long the agreement expects repayment to take across a slow winter.
Quick answers
Is revenue-based financing a good fit for a moving company?
Movers adding trucks before summer or building storage revenue get the best use from it, because winter payments shrink with bookings. For a short payroll gap, it's an expensive tool. Companies with a full year of steady deposits and a storage base get the best terms.
How does a mover's slow season affect the payment?
The payment drops with revenue in the winter months, because it's a share of what comes in. That's the main reason movers prefer it to a fixed daily advance payment. Ask about a monthly floor before signing, because a set minimum in the slowest months narrows that benefit.
Do customer deposits count as revenue for this financing?
Usually, once they land in the business account. Read the revenue definition, because deposits for moves months away raise revenue now and the work comes later. Ask how refunds of cancelled moves are treated, so a cancellation doesn't leave you paying a share of money you returned.
More for moving companies
- Same-day merchant cash advance for moving companies
- Second position MCA for moving companies
- MCA consolidation for moving companies
- Business line of credit for moving companies
- How funders read moving companies
- Revenue-based financing: how it works
Run your own numbers with the factor rate calculator.
Want to see what fits a moving company like yours?
Tell us your slow months and your open advances, and we'll shop the file with funders whose programs fit. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.