Use of funds
Compute the saving in dollars, then compare it with the cost of the capital for the number of days the stock will sit before it sells.
✓ Checking what you qualify for does not affect your credit score.
At Merchant Fund Express, we start from what the money is for, because the use decides the amount, the structure and the timing.
A supplier offers 8% off for a larger order, or a price lock before an increase. The saving is real; so is the cash needed to capture it. The question is arithmetic, not courage.
A funder reading a request like this looks at the business, not just the purpose: deposits and their consistency, average daily balance, negative days and any open advances. A clear, specific use with a defined amount reads better than a general request.
Compute the saving in dollars, then compare it with the cost of the capital for the number of days the stock will sit before it sells. If the saving does not clear the cost with room to spare, skip it.
An illustration. These are illustrative figures to show the arithmetic, not an offer.
| Item | Illustration |
|---|---|
| Normal order | $30,000 |
| Bulk order with 8% discount | $60,000 less $4,800 |
| Saving captured | $4,800 |
| Rule of thumb | The financing cost for the days held should be well under the saving |
The cheapest structure is usually the one that is outstanding for the fewest days. Fund the gap, not the whole year, and prefer a schedule you can see before you sign.
Draw for the order and repay as stock turns, so cost scales with the days you use it. See the page →
Payments follow sales as the stock converts. See the page →
Overestimating how fast the extra stock sells. A discount on stock that sits for a year is not a discount.
Sole proprietors can apply. The minimum FICO is 500, and the better your credit, the better your offer. See the published requirements.
Convert both to dollars over the same period. The factor-rate calculator shows total dollars repaid; the saving should be comfortably larger. 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.
No. Checking what you qualify for does not affect your credit score.
Apply with Merchant Fund Express: same-day decision, and applying takes a few minutes without affecting your credit score.
