Funding for your situation
How owner-occupied real estate is funded, what the down payment and closing costs include, and what a funder reviews.
✓ Checking what you qualify for does not affect your credit score.
Buying the building turns rent into equity, and it takes real cash. The down payment, closing costs, reserves and any renovation come out of a business that still has to operate. Real estate is typically financed through a mortgage structure; the business often still needs working capital for the down payment and the move to ownership.
Merchant Fund Express is a funding marketplace: you apply once, and the file is matched to the structure that fits it. The sections below show what this situation usually costs, how a funder reads it, and what to prepare.
These are the same factors described on revenue and deposit requirements and time in business. Merchant Fund Express walks you through how your own file reads before you apply.
| Cost item | Illustrative amount |
|---|---|
| Down payment (illustrative) | $120,000 |
| Closing costs, inspection and appraisal | $14,000 |
| Repairs and upgrades | $30,000 |
| Reserves and working capital cushion | $25,000 |
| Cushion for overruns and slow early weeks (about 10%) | $19,000 |
| Cash needed for ownership | $208,000 |
Sizing check. If the full repayment shown in an offer were $270,000 over about 26 weeks, the weekly debit would be about $10,385. Against illustrative monthly deposits of $250,000 (about $57,692 a week), that is roughly 18% of weekly deposits. Your own offer states the real repayment amount in dollars; run your numbers on the factor rate calculator before you accept anything.
Source: worksheet by Merchant Fund Express. Illustrative only: these figures are not an offer, and real amounts depend on your file and the funder.
A share of the price paid at closing.
Fees, title, inspections and lender-required reserves.
Building issues become yours the day you buy.
A buffer for the first months of ownership.
A complete file is what makes a same-day decision possible. If something is missing, tell us and we will work around it.
Applying with Merchant Fund Express is a single application. We review it the same day on a complete file, explain what the numbers say in plain terms, and fund typically the next business day after signing. Nothing here affects your credit score to check.
Sometimes, but mortgage lenders often restrict borrowed down payments. Check with the mortgage lender before borrowing.
The mortgage itself is separate. A term loan or working capital may cover repairs and cushion.
The purchase contract, three months of statements and the property condition report help.
The minimum FICO is 500, and better credit means better products and terms. See credit score requirements for how the tiers work.
Merchant Fund Express gives a same-day decision on a complete file. Applying takes a few minutes and will not affect your credit score.
