Use of funds
Request the payoff letter from the lessor.
✓ 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 lease ends and the residual or buyout option arrives as a single payment. Alternatively, a lease carries a high implied cost and owning outright would save money from here on.
The review is of the business as a whole: revenue, time in business, bank activity and any open positions. Say what the money is for and how it will be repaid; a specific plan makes the file easier to read.
Request the payoff letter from the lessor. Compare the buyout amount with the equipment’s market value and with what you still owe in payments.
An illustration. These are illustrative figures to show the arithmetic, not an offer.
| Item | Illustration |
|---|---|
| Remaining lease payments | $21,000 |
| Buyout option | $9,000 |
| Market value | $14,000 |
Match the structure to the shape of the need. A one-time, defined cost fits a lump sum or a term loan; a recurring or uncertain need fits a line you draw and repay.
Refinance the buyout against the asset you now own. See the page →
A fixed weekly schedule that replaces the lease payments. See the page →
Buying out a lease for equipment you plan to replace soon. Check whether returning it is the cheaper end.
Sole proprietors can apply. The minimum FICO is 500, and the better your credit, the better your offer. See the published requirements.
If the market value exceeds the buyout and the equipment has years left, often yes; if you plan to replace it, usually no. 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.
