Use of funds: vehicles
The dealer will finance most of a van. The gap is the down payment and the upfit. Here is how to decide whether short-term funding for that gap earns its cost, with the weekly math laid out.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
Funding a vehicle down payment makes sense when the new truck or van puts a crew on the road that earns more per week than the vehicle payment and the funding payment combined, and when paying cash would drain the reserve you need to run the business. If the vehicle replaces one you already have, or the down payment is small enough to pay from cash without dropping below about six weeks of expenses, pay cash or take the dealer's terms instead.
Our funding starts at $25,000, so this page is about a real gap: two or more vehicles, or a down payment plus upfit (shelving, racks, wraps, lift gates) that the dealer loan will not cover. A single $6,000 down payment is better handled from cash or by the dealer.
| Situation | Fit | Why |
|---|---|---|
| Adding vehicles that add billable capacity (a second or third crew) | Fits | New revenue can carry the payment |
| Dealer wants 15% to 20% down and you also need upfit | Fits | The gap is real and short-term |
| Replacing a vehicle with no added revenue | Usually not | Funding cost is pure expense; use equipment financing or the dealer |
| Down payment under about $10,000 and reserves are healthy | No | Pay cash; our minimum is $25,000 |
| Over-the-road (long-haul) trucking | No | We do not promise funding for long-haul trucking; regional and local carriers follow the trucking rule on our requirements page |
| Used car dealer buying inventory | No | Restricted industry |
The vehicle itself is financed by the dealer or an equipment financing company, with the vehicle as collateral. That is usually the cheapest money in the deal, because the lender can repossess a titled asset. Working capital or revenue-based funding covers only the cash portion: the down payment, taxes and fees the dealer will not roll in, and the upfit. It is underwritten on your business bank statements, not on the vehicle, and it is repaid on a fixed weekly or daily schedule over a short term.
The order matters. Get the dealer's written terms first, including the down payment required at each financing option. Then size the funding request to the gap, not to a round number.
A commercial cleaning company, 4 years in business, adds two crews. Assumptions: two cargo vans at $48,000 each; the dealer requires 20% down; upfit is $3,400 per van; each new crew bills $3,000 a week at a 35% gross margin after labor and supplies; each van loan payment is $820 a month. The funding is illustrated at a 1.28 factor, no fee deducted at funding, repaid weekly over 26 weeks.
| Item | Amount |
|---|---|
| Down payment, 2 x $9,600 | $19,200 |
| Upfit, 2 x $3,400 | $6,800 |
| Funding requested and net proceeds | $26,000 |
| Total repayment at 1.28 | $33,280 |
| Cost of the funding | $7,280 |
| Weekly payment, 26 weeks | $1,280 |
| First payment | Mon, Oct 26, 2026 |
| Last payment | Mon, Apr 19, 2027 |
Weekly break-even, once both crews are at full capacity: gross profit $2,100 (2 x $3,000 x 35%), minus van loans of about $378 a week ($1,640 a month x 12 / 52), minus the $1,280 funding payment, leaves $442 a week. In the first three weeks the crews run at half capacity, so gross profit is $1,050 and the week runs $608 short; that is $1,824 the reserve has to cover. Weeks 4 through 26 add 23 x $442 = $10,166. Net over the 26 weeks: about $8,342 ahead, and $1,722 a week after the funding is repaid.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Use the offer comparison calculator to put the options side by side in total dollars.
Run your own numbers through the break-even line above: new weekly gross profit, minus the vehicle payment, minus the funding payment. If it is positive by week four, check your file against the published requirements or the free qualification check, then apply with the dealer quote attached.
Yes. Working capital can cover the down payment, taxes and fees and the upfit, while the dealer or an equipment lender finances the vehicle itself. Our funding starts at $25,000, so it fits multi-vehicle purchases or a down payment plus upfit.
Usually not per dollar. Vehicle-secured financing tends to cost less. Funding the down payment is a timing tool: it keeps your cash reserve intact while the new vehicles start earning.
A vehicle loan is debt the reviewer will see on your statements, so list it. Positions usually refer to advances and working capital loans; up to 2 current advances are allowed on the revenue-based tier.
Then the funding cost is pure expense. Replacement vehicles are better financed by the dealer or through equipment financing, or paid from cash.
Regional and local carriers with 3 years in business, $200,000 in revenue and contracts with Amazon, FedEx or UPS can be considered. We do not promise funding for long-haul trucking.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
