Industry guide
The cash-flow picture, the calendar of pressure points, and the right funding page for the problem in front of you.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, this guide sets out how the money moves in ecommerce businesses, when cash gets tight and which funding structures tend to fit each need.
An ecommerce business can be profitable and still have an empty account on a Thursday. Reading the two sides of that equation is the first step in choosing the right capital.
Peaks in Q4 and around promotional events, with a quieter first quarter.
The right capital depends on which gap you are actually filling. Here is the usual pattern of pressure for an ecommerce business:
These are the needs we see most often, with the structure that tends to fit each one.
Usually fits: inventory financing or a line of credit.
Usually fits: a short working-capital draw.
Usually fits: equipment financing or a term loan.
Underwriting for revenue-based business funding reads bank activity: deposits, average daily balance, negative days and any open advances. For an ecommerce business, the lines that matter are:
The usual trap: scaling ad spend faster than payouts can fund the inventory it sells. If this is your situation, say so on the application; it is better read as context than discovered as a surprise. See the published requirements for the exact thresholds. The minimum FICO is 500, and the better your credit, the better your offer.
Take an ecommerce business with about $100,000 in monthly revenue asking for $70,000. These figures are an illustration of how the published terms work, not an offer; your offer shows the actual amount, schedule and total cost before you sign.
| Illustration | Figure |
|---|---|
| Request | $70,000 |
| Monthly revenue assumed | $100,000 |
| Line of credit: 2.49% fee on a single draw of that size | $1,743 |
| Term loan cap: 15% of annual revenue | $180,000 (this request fits under it) |
| Merchant cash advance at an example 1.30 factor: total payback | $91,000 |
| … spread over about 26 weeks: weekly remittance | $3,500 |
| … or about 126 business days: daily remittance | $722 |
Compare any offer on total dollars repaid and on the rhythm of payments, not on a single rate. See the factor-rate calculator to run your own numbers.
Every page below is written for ecommerce businesses. Start with the problem you have this month.
Yes. Ecommerce businesses are an eligible industry. Sole proprietors can apply, the minimum FICO is 500, and the better your credit, the better your offer. Details are on the ecommerce business qualification page. Merchant Fund Express shows the exact amount, schedule and total cost in your offer before you sign.
A person reviews your revenue, time in business and bank activity, and a decision is typically same day. Approved files are usually funded the next business day. Merchant Fund Express publishes its terms and thresholds before you apply.
It depends on the need. For inventory purchase orders, inventory financing or a line of credit tends to fit; for advertising scale-up on proven channels, a short working-capital draw. The structure follows the problem, so start from what the money is for.
Deposits and their consistency, average daily balance, negative days and NSFs, and any open advances. Regular payouts from named processors and marketplaces.
Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.
