Worked example: entirely hypothetical
Assume a business receives £10,000, agrees a £1,500 fixed fee and repays 10% of eligible card sales. For this simplified example there are no additional funding charges, no minimum repayments and no contractual deadline. Real offers may have conditions this example does not include.
| Item | Illustrative calculation | Amount |
|---|---|---|
| Cash received | Assumed advance | £10,000 |
| Fixed funding fee | Assumed agreed charge | £1,500 |
| Total repayment | £10,000 + £1,500 | £11,500 |
| Fee as a share of advance | £1,500 ÷ £10,000 | 15% — not APR |
| Sales needed to repay | £11,500 ÷ 10% | £115,000 |
These assumptions illustrate the mechanism only. The 10% collection rate is separate from the 15% fee-to-advance ratio. Neither number is an annual percentage rate.
What different trading days would look like
- £1,000 eligible card sales: £100 goes towards the advance and £900 remains before payment-processing costs, refunds, tax and operating expenses.
- £500 eligible card sales: £50 goes towards the advance and £450 remains before those other costs.
- £20,000 eligible monthly sales: £2,000 monthly repayments would imply roughly 5.75 months to repay £11,500 if that sales level stayed constant.
- £10,000 eligible monthly sales: £1,000 monthly repayments would imply roughly 11.5 months under the same simplified assumptions.
These are arithmetic scenarios, not forecasts or permitted repayment terms. Actual daily timing, the final payment and contractual requirements can change the outcome. Lower sales do not make the underlying funding obligation disappear.
Why the fixed fee is not APR
The £1,500 fee is 15% of the original £10,000 advance. APR is an annualised measure involving the timing and pattern of payments and applicable calculation rules; it cannot be read directly from that simple ratio. Faster repayment changes the time over which the same cash fee is paid.
Do not describe a fixed-fee product as free funding because it has no conventional interest rate. Ask an independent accountant or financial adviser to help compare cash-flow cost with alternatives if needed.
Apply the right provider’s conditions
Dojo Business Funding names YouLend and describes fixed-fee, sales-linked repayment. Flex Funds is a different Liberis product. Eligibility, checks, drawdowns and terms must be verified for the specific offer; this example is not a model of every feature of either product.
- Confirm cash received, total owed and every additional charge.
- Ask how eligible sales are defined and how refunds or chargebacks affect deductions.
- Check any minimum payment, deadline, security or personal-guarantee requirement.
- Ask what happens if trade falls, the business closes, you refinance or change payment providers.
- Check early repayment and any fee rebate rather than assuming either.
Read the eligibility guide before applying and settlement guidance when planning available cash. This is general education, not an affordability assessment or a recommendation to borrow.
Sources and method
Author: Time Consulting editorial team. Checked: .
The product descriptions were checked against the official pages below. Every number in the worked example is a hypothetical editorial assumption; the calculations are simple arithmetic, not a provider quote, APR calculation or prediction. Time Consulting is an introducer, not the funder or a whole-market finance broker. Obtain the actual contract and appropriate independent advice.
- Dojo Business Funding — YouLend product, repayment model and assessment factors.
- Dojo Flex Funds — Separate Liberis product and its published eligibility conditions.
We may receive an introducer fee. Provider approval, pricing and contractual decisions remain with the relevant provider. Ask about a source, correction or our commercial relationship.