Funding for your situation
What to do when a supplier moves you from net terms to prepayment or cash on delivery.
✓ Checking what you qualify for does not affect your credit score.
Losing net terms is a cash shock. Suppliers tighten terms when payments get late, when their own credit insurance changes, or when you reach a limit. The cost is the working capital that terms used to provide, which can be several weeks of purchases.
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.
| Cost item | Illustrative amount |
|---|---|
| Monthly purchases moving to prepay (30 days) | $28,000 |
| Past-due balance to restore terms | $9,500 |
| Deposits with alternative suppliers | $4,000 |
| Cushion to rebuild terms | $5,000 |
| Cushion for overruns and slow early weeks (about 10%) | $4,500 |
| Cash to replace lost terms | $51,000 |
Sizing check. If the full repayment shown in an offer were $66,000 over about 26 weeks, the weekly debit would be about $2,538. Against illustrative monthly deposits of $50,000 (about $11,538 a week), that is roughly 22% 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.
Thirty days of purchases now paid up front.
Often a condition of restoring terms.
Sometimes with their own deposits.
Paying on time builds back credit.
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.
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.
Working capital or a line of credit acts as a replacement for supplier credit.
Often, after a few cycles. Ask the supplier what restores them.
Get quotes. Competition also improves your leverage.
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.
