Use of funds
Total the direct costs of fulfilling the order: materials, labour, freight and fees.
✓ 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 purchase order from a reliable customer is the best news a small business gets, and the first thing it does is consume cash: materials, labour and shipping must be paid before the invoice is.
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.
Total the direct costs of fulfilling the order: materials, labour, freight and fees. Subtract any deposit received. That is the amount to fund; do not fund your margin.
An illustration. These are illustrative figures to show the arithmetic, not an offer.
| Item | Illustration |
|---|---|
| Purchase order value | $80,000 |
| Direct cost to fulfil | $52,000 |
| Deposit received | $10,000 |
| Gap to fund | $42,000 |
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.
A lump sum to fulfil the order, repaid from the proceeds. See the page →
If purchase orders arrive repeatedly, a line avoids reapplying each time. See the page →
Once the order is delivered and invoiced, selling the invoice shortens the wait. See the page →
Taking a purchase order from a customer that pays in 90 days without funding the whole cycle. Check payment terms before accepting.
Sole proprietors can apply. The minimum FICO is 500, and the better your credit, the better your offer. See the published requirements.
Funding is based on your revenue and bank activity rather than on the document alone, so the order helps explain the need but your account history decides the file. 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.
