The short answer
The stock-to-cash cycle
A retailer pays for goods, waits for them to arrive, displays them, sells them, and then waits a day or two for card settlements. For seasonal goods that cycle can run 60 to 120 days. If funding payments start before the goods sell, they come out of the cash that runs the store today.
Write down your cycle before you apply: order date, delivery date, the weeks of strongest selling, and when deposits peak. That timeline decides the right term. More from Merchant Fund Express on retail funding.
Who it fits, and who it does not
- Fits: boutiques, hardware stores, gift shops, sporting goods, pet supply and specialty food retailers with steady card deposits.
- Fits: stores with sell-through history on the items they want to buy.
- Does not fit: buying a brand new product line with no sales history, in large volume. Test small first.
- Does not fit: invoice factoring, since retail stores are paid at the point of sale by consumers.
- Does not fit: a store already behind on rent or vendor terms. Fix those first or consider a refinance of existing advances.
Check what your business qualifies for
Merchant Fund Express reviews retail store funding requests from $5,000 to $5,000,000. Scores from 500 are considered, and same-day decisions are common on complete files.
Check funding options with Merchant Fund ExpressHow it works
- Get the supplier's order deadline and any early-pay discount in writing.
- Apply with 3 to 4 months of bank statements, ID, a voided check and the application. Advances commonly start around $7,500 a month in revenue; working capital loans commonly around $17,500 a month.
- Choose a term that ends after the goods have sold, not before.
- Pay the supplier, receive the stock, and track sell-through weekly.
Related: working capital loans and merchant cash advances.
Illustrative example: a hardware store takes a spring discount
Illustrative example. These figures are illustrations to show the arithmetic, not offers. Real pricing, terms and amounts come only from a reviewed application.
Assumptions: an independent hardware store with about $60,000 in monthly deposits, 8 years open, credit around 700. Its supplier offers 8% off a $40,000 spring garden order if paid by February 1. The store's average gross margin on those goods is 50%, so the order retails for about $80,000.
| Item | Amount |
|---|---|
| Working capital loan | $40,000 |
| Origination fee (2%) | $800 |
| Net cash received | $39,200 |
| Total repayment | $45,200 |
| Payment | 26 weekly payments of $1,738.46 |
| Cost of funding (interest plus fee) | $5,200 + $800 = $6,000 |
| Supplier discount: 8% of $40,000 | $3,200 |
| Net cost after discount | $2,800 |
| Expected gross profit on the order | $80,000 minus $40,000 = $40,000 |
Arithmetic: $45,200 / 26 = $1,738.46. The discount alone covers about half the funding cost. The deal works because the goods sell at a 50% margin within the 26-week term. If spring sell-through is slow, the payments continue while stock sits on shelves.
Funding brings customers. Is your website ready for them?
New stock sells faster when shoppers can see it before they drive over, so post the spring or holiday arrivals with prices, hours and directions on your site. A store that shows its inventory online turns funded stock back into deposits sooner. Cheap Cheap Websites builds professional retail sites from $399, with Website Care at $30/month for hosting, backups and swapping in new product photos each season.
What to prepare
- 3 to 4 months of business bank statements, and last year's statements for the same season if available.
- Supplier quote, order deadline and discount terms.
- Sell-through or sales reports for the categories you are buying.
- ID, voided check and application.
When another option or waiting is better
If you buy stock several times a year, a business line of credit avoids reapplying each season. If the need is shelving, a cooler or a POS system, equipment financing keeps that cost separate from inventory. And if last season's stock is still on the floor, a clearance sale is cheaper funding than any offer. For holiday-specific timing, see holiday season business funding.
Related funding guides
Cheap Cheap Websites builds websites. It does not lend or make funding decisions. Funding is offered by our funding partner, Merchant Fund Express, and every request is subject to its review and approval. Figures on this page are illustrations, not offers. Updated October 15, 2026.