Glossary
What is Annual Revenue?
Annual revenue is the total income your business brings in from sales over a 12-month period, before expenses are subtracted. Many lenders set a minimum annual revenue requirement, and the amount you can borrow is often tied to it. Lenders typically verify revenue with tax returns or bank statements, so the figure you report should match your records. Revenue is different from profit, and lenders also look at whether the business earns enough to repay.
Example
A business with $600,000 in sales last year reports annual revenue of $600,000, even if its profit was much lower.
Related terms
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