Higher input costs tie up more cash in inventory and payroll; working capital needs grow even when unit sales stay flat.
Check my optionsFinancial management
Inflation raises the cost of inventory, materials, wages and rent before it raises your prices. That lag increases the working capital you need and can squeeze margins, which in turn affects how much funding you can carry.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Existing balances of $100,000 or less can be bought out.
A person reviews your revenue, time in business and bank activity, often within hours.
Advances, lines of credit and second-position options in one place.
You can apply at 500; stronger credit opens more products.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
The first effect is on working capital. If your supplier prices rise 10% and you keep the same volume, you need roughly 10% more cash to stock the same shelves or buy the same materials. Wages, rent and insurance often rise too. A business that comfortably ran on $50,000 of working capital may now need noticeably more, even with flat sales volume.
The second effect is on margin. Many small businesses raise prices only after costs have already risen, absorbing the difference in the meantime. During that lag, profit per sale falls. Lower margins mean less room for financing payments, so the same funding payment that was easy last year can feel heavy now. Reviewing prices more often during inflationary periods protects margin and repayment capacity.
The third effect is on borrowing costs. When the Federal Reserve raises rates to fight inflation, bank loans and lines tied to the prime rate become more expensive. Revenue-based funding is priced differently, with factor rates less directly tied to the prime rate, but funders may adjust criteria if inflation hurts specific industries.
Practical responses include locking in supplier pricing where possible, buying ahead when you can verify demand, raising prices in smaller, more frequent steps and requesting funding based on current costs rather than last year. A revenue-based offer through MFE, with credit from 500 considered, is sized on your current deposits, so as your prices adjust, offers tend to follow.
Here is a working capital offer sized for higher current input costs. Illustrative numbers.
| Funding for the project | $100,000 |
| Total payback (factor 1.38) | $138,000 |
| Term | ~26 weeks |
| Payment per week | $5,308 |
| Monthly payment the project must cover | $22,982 |
| Your estimate of added monthly profit | $12,000 |
| Verdict | Does not pay back in time — reduce the amount or rethink |
Illustrative. Replace the estimate with your own numbers before applying.
| Input costs | More working capital needed |
| Price lag | Margin squeezed temporarily |
| Interest rates | Bank borrowing costs rise |
| Customer demand | May soften in some sectors |
| Funding size | Request based on current costs |
Good fit:
Probably not yet:
It raises costs, squeezes margins during price lags and can increase borrowing costs.
Usually, since the same volume costs more to buy.
Less directly than bank loans, though funders adjust criteria by industry conditions.
Smaller, more frequent increases often protect margin with less customer pushback.
It can be, if demand is verified and you can carry it.
On current costs, not last year amounts.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding