Retail
Stock arrives in September, peak sales arrive in December, and the payments start in between. Here is a dated plan, a downside case, and a test for how much to borrow.
✓ Checking what you qualify for does not affect your credit score.
Updated October 13, 2026 · Merchant Fund Express
Seasonal retail funding works when the stock you buy sells through in time to cover the payments, with margin to spare. It fails when the season disappoints and you are left paying for goods still on the shelf in January.
So the right amount is set by your downside case, not your best one.
A gift and home store doing about $42,000 a month outside the season buys $60,000 of holiday stock at cost, priced at a 2.2 times markup.
| Date | Event | Cash | Season position |
|---|---|---|---|
| Aug 25 | Vendor deposits | $18,000 out | −$18,000 |
| Sep 20 | Balance on delivery | $42,000 out | −$60,000 |
| Oct | Early sell-through, about 15% | $19,800 in | −$40,200 |
| Nov | About 35%, Black Friday weekend | $46,200 in | $6,000 |
| Dec | About 40% | $52,800 in | $58,800 |
| Jan | Final 10% at markdown | $7,900 in | $66,700 |
In the base case the season returns its cost by late November and finishes about $66,700 ahead. The deepest point is $60,000 in late September.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
Now assume a soft season: 25% less sell-through, and everything unsold marked down in January.
| Date | Event | Cash | Season position |
|---|---|---|---|
| Oct | About 11% sold | $14,500 in | −$45,500 |
| Nov | About 26% | $34,300 in | −$11,200 |
| Dec | About 30% | $39,600 in | $28,400 |
| Jan | Remaining 33% at deep markdown | $13,000 in | $41,400 |
Even the soft season stays positive overall, but cash is negative well into December instead of late November. Any payment schedule has to survive October through mid-December on your normal store revenue. If it cannot, the buy is too large.
All figures in worked examples are illustrations of the arithmetic, not offers or quotes. Real terms depend on your file and the funder.
A smaller first order with a reorder line, or a later deposit with your vendor, is often cheaper than funding the whole season up front.
A line of credit suits seasonal buying because you draw per vendor and repay as December sales come in. It sits on the first tier of our published requirements. Revenue-based funding is read on deposits and can flex with sales. See revenue-based financing. For related reading, see funding with seasonal revenue and inventory restock. When ready, apply in about five minutes.
Before your first vendor deposit is due. Decisions on complete files are typically same day, but your schedule should not depend on the last day.
Yes. Bank statements from last fall show the seasonal lift, which helps a reviewer understand the timing. Send what is requested and note the season in a line.
Plan for it. The downside case above assumes deep January markdowns. If the payments only work in the best case, reduce the buy.
Often, because you draw as each vendor invoice lands and pay down as sales come in.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
