Franchise funding
One or two advances on the books does not close the door. It changes which products fit and how much payment the unit can carry.
✓ 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
A franchise owner who already carries one or two advances can still get more capital. Merchant Fund Express counts every existing position, reads royalty and ad fund drafts as normal costs, and sizes a new payment on what is left. Revenue-based financing and MCAs allow up to 2 current advances, a line of credit can sit in second position, and a term loan needs first position.
You already run the unit, you took an advance last year for a cooler, a remodel or a slow season, and now a new need has arrived: a second distributor order, a payroll ramp, a franchisor-scheduled refresh. You want to know whether the advance you already carry blocks you. It does not. It shapes the answer.
If your real goal is to bring today's payment down rather than add capital, start with how to lower your franchise MCA payment.
A "position" is each open advance or financing that debits the business account. First position is the first one in place; each one after it stacks behind. Merchant Fund Express reads each position from the bank statements and the agreements, by entity, so a multi-unit owner with advances on two different LLCs is read unit by unit.
| Current positions | Products that fit | What decides it |
|---|---|---|
| None | Term loan (first position only), line of credit, revenue-based financing, MCA, equipment financing | Widest choice; Tier 1 standards for term loan and line |
| One | Line of credit (can sit in second position), revenue-based financing, MCA, equipment financing | Term loan is out while the advance is open |
| Two | Revenue-based financing or MCA (Tier 2 allows up to 2 current advances), equipment financing | Payment room is the deciding number |
| Three or more | Focus on lowering the payment first | Adding a position on top usually makes the unit weaker |
The general rules are on existing positions and stacking and funding with an existing merchant cash advance.
A hypothetical unit deposits $120,000 a month. Royalty and ad fund drafts total about $8,400 a month. Advance A debits $1,500 a week; advance B debits $300 a business day.
| Line | Figure |
|---|---|
| Royalty and ad fund | $8,400 a month |
| Advance A (weekly) | $1,500 x 52 / 12 = $6,500 a month |
| Advance B (daily) | $300 x about 21.7 = about $6,510 a month |
| Fixed debits today | $8,400 + $6,500 + $6,510 = $21,410, about 17.8% of deposits |
| Proposed new advance (weekly) | $1,200 x 52 / 12 = $5,200 a month |
| Fixed debits after | $21,410 + $5,200 = $26,610, about 22.2% of deposits |
Whether 22% works depends on food or parts cost, labor and rent. A unit with thin margins should take less, or ask for a structure that lowers the existing payments while adding capital. Test your own figures in the payment burden calculator.
Figures in this example are illustrations of the arithmetic, not an offer, quote or approval. Real terms depend on the file and the funder.
Merchant Fund Express is built for franchise owners who are already open and already carry obligations. Terms depend on the business's revenue and history.
| Need | Product | Leans on |
|---|---|---|
| Repeating gaps (distributor orders, payroll timing) | Line of credit | Tier 1; second position allowed |
| One-time stock or slow-season cushion | Revenue-based financing | Tier 2; up to 2 current advances |
| Fast cash tied to card sales | Merchant cash advance | Tier 2; up to 2 current advances |
| A specific oven, lift, cooler or POS | Equipment financing | Vendor quote; equipment is the purpose |
Yes. Revenue-based financing and MCAs are reviewed with up to 2 current advances. The deciding number is the payment room after royalties and both existing payments.
Yes. A line of credit can sit in second position if the unit meets Tier 1 standards.
The term loan is first position only, so it fits a file with no current advance.
Each unit is read by entity. An advance on a different LLC is noted, but the unit applying is sized on its own deposits and obligations.
Funding runs from $25,000 to $5,000,000 overall, sized from deposits and existing obligations. Merchant Fund Express gives a same-day decision on a complete file.
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.
