Use of funds
Work backwards from expected sales over the restock period, subtract what is on hand, and multiply by cost.
✓ 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.
Inventory is paid for before it sells. A strong month can empty the shelves faster than the cash from that month can refill them, and the business sells less because it has less to sell.
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.
Work backwards from expected sales over the restock period, subtract what is on hand, and multiply by cost. Add shipping lead time: if goods take three weeks to arrive, the cash is needed three weeks earlier than the sales.
An illustration. These are illustrative figures to show the arithmetic, not an offer.
| Item | Illustration |
|---|---|
| Expected sales over the next 60 days (at cost) | $55,000 |
| Stock on hand (at cost) | $20,000 |
| Restock needed | $35,000 |
| Typical supplier terms | Paid on order or on delivery |
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.
Draw per restock and repay as the stock sells. See the page →
A lump sum for a defined seasonal buy. See the page →
Payments flex with sales, which matches how inventory converts to cash. See the page →
Buying more of what sells slowly. Capital should chase turns, not volume for its own sake.
Sole proprietors can apply. The minimum FICO is 500, and the better your credit, the better your offer. See the published requirements.
A decision is typically same day and funding usually the next business day, which suits restocks tied to a supplier cut-off. 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.
