Use of funds: relocation
The biggest cost of a move is often the days you are closed, not the truck. Here is how to price overlap rent against lost sales, size the request and find cheaper money first.
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Updated October 13, 2026 · Merchant Fund Express
When a lease ends or a better space opens up, the cheapest move is usually the one with the fewest closed days. That often means paying rent on both spaces for a month or two while you build out and move equipment. Funding fits when the overlap rent, deposit, moving and build-out costs land before the new location produces sales, and when the gross profit you protect by staying open is larger than the funding cost.
If you are moving because sales are falling, fix the reason first. Relocation funding works for a business that is healthy and moving to stay that way or grow.
| Cost line | What it covers |
|---|---|
| Overlap rent on the new space | Months you pay both rents |
| Security deposit on the new lease | Often one to two months |
| Disconnect, move and reinstall equipment | Ovens, chairs, racking, servers |
| Build-out the landlord does not cover | Counters, signage, fixtures |
| Permits and inspections at the new address | Health, fire, occupancy |
| Downtime | Closed days times daily gross profit |
A bakery's lease ends Jan 31, 2027. The new space is available Dec 1, 2026 at $7,200 a month. Sales are $3,000 a day, six days a week ($18,000 a week) at a 60% gross margin. Funding is illustrated at a 1.29 factor, no fee deducted, repaid weekly over 30 weeks.
| Item | Amount |
|---|---|
| New rent overlap, Dec and Jan (2 x $7,200) | $14,400 |
| Security deposit, 2 months | $14,400 |
| Move and reinstall ovens and mixers | $9,500 |
| Build-out and signage | $12,000 |
| Permits and health inspection | $1,200 |
| Total cash need | $51,500 |
| Funding (balance of $1,500 from cash) | $50,000 |
| Total repayment at 1.29 | $64,500 |
| Cost of the funding | $14,500 |
| Weekly payment, 30 weeks | $2,150 (about 11.9% of weekly sales) |
| Payments run | Nov 2, 2026 to May 24, 2027 |
Overlap vs downtime. Without overlap, the bakery would close for about 12 operating days to move and reinstall. With two months of overlap it closes for 2. Ten saved days x $3,000 x 60% = $18,000 of gross profit protected, against $14,400 of overlap rent. The overlap pays for itself before counting regulars who drift to a competitor during a long closure.
Payback. If the new location lifts sales 12% ($2,160 a week, $1,296 in gross profit) and rent rises $700 a month (about $162 a week), the move adds about $1,134 a week. The $14,500 funding cost is recovered in about 13 weeks.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
For a lease deposit on its own, see lease deposit and first month; for a move to grow, see moving to a bigger space.
Count your closed days with and without overlap and price each at your daily gross profit. If overlap wins, check the requirements or the free qualification check, then apply before the first overlap rent is due.
Your business, bank account and history stay the same, so a move by itself does not reset anything. Keep deposits flowing into the same account through the move.
Before. Your statements will look strongest before any closed days show up in them.
Yes, as part of a request of $25,000 or more alongside the other move costs.
Get the landlord's contribution in the lease first. Fund only the gap after that.
Only if a week of lost gross profit and customers is smaller than the overlap rent. Run both numbers.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
