The double squeeze
A store that has found a channel that returns three dollars for one has a cash problem, not a marketing problem. Every dollar of spend is charged to the card today and the revenue lands in the payout cycle days or weeks later; scaling the spend means fronting more of that gap every week, at the same time as the inventory to fulfil the orders the ads generate is bought months ahead. Founders describe it as funding inventory and ads at once, and it is the reason profitable stores stall.
Which product, and why the answer depends on your deposits
A revenue-based advance with a true holdback — repayment taken as a fixed percentage of each payout — fits a store whose weekly sales move with its ad spend. When the campaign works, the repayment is larger and the balance clears faster; when a campaign flops, the repayment shrinks with the sales. That elasticity is the whole reason to prefer it over a fixed daily debit, and it is worth asking for by name and reading the contract to confirm you are getting it.
A business line of credit fits a store whose deposits are steady and predictable month to month: drawn for the month's spend, repaid as the payouts land, costing interest only on the days it is drawn and nothing when it is not. It is cheaper per dollar and harder to qualify for — expect a year or two of clean statements — which is why stores with a proven channel and a year of history usually end up here.
Sizing it
Size the funding to a month of the higher spend, not to a year of ambition. If spend is going from $20,000 to $50,000 a month and the payout cycle is two weeks, the gap is roughly a month of the increase. Funders offer half to one and a half times a month's deposits; a store paying out $150,000 a month can raise that comfortably in one offer, funded in one to three business days for an advance.
Send the platform dashboards with the statements: the return on ad spend by month, the payout history, and the inventory position. An underwriter who can see that spend and revenue moved together for six months is reading a machine, not a bet.
What ad spend must not be funded with
Equipment financing, because ads are not an asset. A long-term loan, because ads pay back in days and a five-year note on a month of spend is paying for money long after it worked. And a stacked second advance on the first, because a campaign that stops working with two fixed debits running is how stores with good products close. One product, sized to a month, repaid from the sales it makes.