Use of funds
A reserve of one to three months of fixed costs is a common target.
✓ 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.
Many owners run a business with a balance close to zero and a line of credit as the buffer. A drawn-on-demand reserve is cheaper than a permanent one.
Underwriting leans on bank activity: how much comes in, how steadily, and what the balance looks like between deposits. A request that is tied to a specific, near-term need is easier to size and to approve.
A reserve of one to three months of fixed costs is a common target. A line of credit sized to that number gives the cushion without paying for it until used.
An illustration. These are illustrative figures to show the arithmetic, not an offer.
| Item | Illustration |
|---|---|
| Monthly fixed costs | $22,000 |
| Reserve target | 2 months |
| Line to open | $44,000, rounded to the nearest $5,000 above your tier |
Before you choose, ask two questions: how long will the money be out, and where will the repayment come from? The answers narrow the options quickly.
No cost to keep open; interest only on what you draw; reusable as you repay. See the page →
Drawing on the reserve for growth rather than for stability. Keep its purpose clear.
Sole proprietors can apply. The minimum FICO is 500, and the better your credit, the better your offer. See the published requirements.
On a Merchant Fund Express line of credit there is no origination fee, no maintenance fee and no early payoff penalty; each draw carries a 2.49% fee and the minimum draw is $10,000.
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.
