Clothing stores / Refinance

Already carrying an advance? What a clothing store can do about daily debits.

First and second position funding, buyouts of balances up to $100,000, and what the daily-to-weekly change does to your cash flow.

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How clothing stores end up with more than one advance

At Merchant Fund Express, we publish the terms and thresholds behind this page so you can check your own numbers before you apply.

Retail stacks around seasonal buys: an advance for fall inventory that sold slowly, then another to bridge. The debits arrive daily; the sales concentrate in two or three months.

In plain terms: an advance taken for a seasonal buy that sold slowly, then another to bridge the gap.

What can be done

First and second position are both funded. Existing positions with a balance of $100,000 or less can be bought out into a weekly-payment term loan or a line of credit, and a line of credit up to $350,000 can sit in second position behind an existing advance. Up to two current positions fit the written guidelines, and some agreements restrict new financing, so read yours first. See MCA refinance and second position funding.

Daily versus weekly, on a clothing store numbers

An illustration, not an offer. Say a clothing store with about $55,000 in monthly revenue has a remaining advance balance of $28,000, being collected over about 60 business days:

Item	Illustration
Daily debit (60 business days)	$467
Debited in a 21-day month	$9,800 (18% of monthly revenue)
The same balance as a weekly payment over about 9 weeks	$3,111
Terms of a new schedule	Set in your offer; a lower payment over a longer term is the goal

Use the payoff calculator with your own balance.

What to line up first

Total inventory on hand against the balance

Plan clearance to convert stock to cash

Ask for weekly payments that fit the off-peak

Disclose every open position on the application; it shows on your statements either way.

Clothing stores: the full industry guide — Cash flow, calendar and every funding page for this industry.

MCA refinance — Buyouts, second position and the weekly alternative.

Second position funding — More capital without disturbing the first.

Renewals — When a paid-down balance opens better terms.

Existing positions and stacking — How funders read open positions.

Revenue-based financing for clothing stores — Payments that follow sales.

Common questions

Can a clothing store get more funding while carrying an advance?

Often. Seasonal deposit curves are read as such; the off-peak months set the comfortable load. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.

Can an existing advance be bought out?

Where your file and your agreement allow it, balances of $100,000 or less can be bought out into a weekly-payment term loan or line of credit.

Second position or a renewal?

Second position is a new agreement behind the existing one, so you make both payments. A renewal is more funding from the funder you already have, with one payment.

See what you qualify for

Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.

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