The short answer
Who this fits and who it does not
This fits an owner whose first location is stable, with at least several months of clean deposits and a clear plan for the second site. Restaurants, salons, clinics, gyms, retail shops and service businesses opening a second storefront are common examples.
It does not fit when the first location is still struggling, when the deposits swing wildly month to month, or when the lease and build-out quotes are not signed yet. It is also a poor fit if the second site needs a large construction project that would be better financed with a longer-term loan or landlord improvement allowance.
How it works, mechanically
With revenue-based financing, a funder provides a lump sum today in exchange for a fixed total repayment collected from your future deposits. Payments are usually a set daily or weekly debit, or a percentage of deposits. The total repayment is set up front by a factor rate, so there is no interest that grows over time.
The key point for expansion: the first location pays. The funder reads the existing business bank statements, not projections for the new site. If the first store does $60,000 a month, the offer is sized from that, and the daily payment comes out of that account while the second store builds its own customer base.
Merchant Fund Express reviews requests from $5,000 to $5,000,000. Its second location funding page explains the same approach from the funding side.
Check what your business qualifies for
Merchant Fund Express reviews funding a second location 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 ExpressIllustrative example: a $60,000 second-location budget
Assumptions: first location deposits about $60,000 a month, advance of $60,000 (1.0x monthly revenue), factor rate 1.35, a 3% origination fee, and a fixed daily payment over about 180 business days.
| Item | Amount |
|---|---|
| Advance amount | $60,000 |
| Origination fee (3%) | $1,800 |
| Net cash received | $58,200 |
| Total repayment ($60,000 x 1.35) | $81,000 |
| Daily payment ($81,000 / 180 business days) | $450 |
| Build-out and fixtures | $35,000 |
| Equipment | $12,000 |
| Opening inventory and supplies | $5,000 |
| Ramp-up runway reserve | $6,200 |
Illustrative example only. The $450 daily payment is about $9,450 a month across 21 business days, roughly 16% of the first location's deposits. Ask yourself whether the first store can absorb that for nine months even if the second store earns nothing at first.
These figures are illustrations, not offers. Real pricing, amounts and terms depend on the full file.
Plan the ramp-up runway
- Month 1 to 2: expect the new site to lose money. Payroll, rent and utilities start before regular customers do.
- Month 3 to 4: many locations reach partial break-even as local search, reviews and repeat visits build.
- Month 5 and later: the second site should start adding deposits that help carry the payment.
Keep the runway reserve in its own account so it does not quietly get spent on build-out overruns. If your contractor quote has no contingency line, add 10% yourself.
Funding brings customers. Is your website ready for them?
A second location needs its own page, its own map listing and accurate hours before the doors open, or nearby customers will keep driving to the first store. Cheap Cheap Websites builds professional sites from $399, with location pages added cleanly, and Website Care at $30/month keeps hours and details current.
What to prepare
- 3 to 4 months of business bank statements for the first location.
- Government ID and a voided business check.
- A short application.
- For larger requests: recent financial statements and tax returns.
- Helpful context: the signed lease, contractor quote and equipment quotes, so the amount you ask for matches a real budget.
Complete files often get a same-day decision, with funding often the next business day, though neither is promised.
When another option or waiting is better
If the build-out is mostly equipment, equipment financing spreads the cost over the equipment's life, up to 60 months at MFE, and keeps your daily cash free. If you have a year or more in business and solid credit, a term-based working capital loan may cost less over time. And if the first location already carries another advance, read how positions affect new offers before adding a second one.
Waiting is smarter if the first location had a weak quarter, if you have not signed the lease, or if your opening date is likely to slip. Paying daily on money that sits idle during a delayed build-out is an expensive way to wait.
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.