Franchise funding
A low score does not erase a unit that pays its royalties every week. Here is how the score, the deposits and the track record work together.
✓ Merchant Fund Express starts with a soft credit pull. Terms depend on your business's revenue and history.
Updated October 21, 2026 · Merchant Fund Express
Merchant Fund Express considers franchise owners with credit scores from 500. A score of 600+ opens better offers, and 650+ opens the line of credit and term loan. Below that, the unit's deposits and its record of paying royalty and ad fund drafts carry the file, so a strong unit with a bruised score still has real options.
A credit score tells a reviewer how the owner handled credit in the past. Bank statements tell a reviewer how the unit runs today. For a franchise unit the statements show something extra: royalty and ad fund drafts clearing on schedule, week after week. A unit that has paid every royalty draft for two years has a track record no score captures.
Merchant Fund Express reads both, and for owners in the 500s the deposits do most of the work. The general guide is the best business funding for bad credit; this page is the franchise version.
| Score band | What fits | What the review leans on |
|---|---|---|
| 500 to 599 | Deposit-based options sized on the unit's revenue | Steady deposits, healthy balances, clean recent months |
| 600 to 649 | Revenue-based financing or MCA (Tier 2) | 6+ months, $60K verifiable revenue, $800 minimum daily balance, max 5 negative days / NSFs |
| 650 and up | Line of credit or term loan (Tier 1) | 3+ years, $25K a month with 8+ deposits, no bankruptcy or foreclosure in 3 years |
Equipment financing is reviewed on the vendor quote and the equipment itself, so it can sit alongside any band. Full score detail is on credit score requirements.
Some things weigh more than the score itself. In order of how often they stop a file:
If the problem is a heavy daily payment from an existing advance, address that first with how to lower your franchise MCA payment.
A hypothetical owner has a 560 score from a medical bill two years ago. The unit has operated four years and deposits $70,000 a month, with royalty and ad fund drafts of about $5,200 a month and no current advance.
| Line | Figure |
|---|---|
| Score band | 500s: deposit-based option |
| Royalty and ad fund | $5,200 a month, about 7.4% of deposits |
| Illustrative new weekly payment | $900 x 52 / 12 = $3,900 a month |
| Total fixed debits | $5,200 + $3,900 = $9,100, about 13.0% of deposits |
| If the score rises past 600 | Tier 2 revenue-based financing comes into view |
| If it rises past 650 | The unit already meets the 3-year line of credit test on time in business |
The unit carries the payment comfortably. Improving the score later moves the owner into cheaper products, so keep the account clean.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
Apply in about 5 minutes; the start is a soft credit pull, so checking your options does not hurt your score. Send about 3 months of business bank statements for the unit's entity. Sole proprietors are eligible, ITIN applicants are accepted, and Spanish-speaking support is available. Merchant Fund Express gives a same-day decision on a complete file. Terms depend on the business's revenue and history. Start the application.
Scores from 500 are considered. 600+ opens better offers, and 650+ opens the line of credit and term loan.
No. The application starts with a soft credit pull.
Yes. Royalty and ad fund drafts clearing on schedule show up on the statements and support the file.
No. An open bankruptcy stops the review. Tier 1 products also need no bankruptcy or foreclosure in the last 3 years.
Equipment financing is reviewed on the vendor quote and the equipment, so it is worth applying even with a score in the 500s.
Yes. ITIN applicants are accepted and Spanish-speaking support is available.
Merchant Fund Express reviews your location's revenue, deposits and existing payments. Same-day decision on a complete file; funding often the next business day. About five minutes to apply.
