A shop's sales run through the register every day, which is why sales-based funding is often the first thing retail owners ask about before a stock buy. Here is how it lines up with a retailer's cash cycle.
Apply Now →A retail store has an unusual cash profile. Money comes in a little at a time, all day, through a terminal or a drawer. Money goes out in lumps: a purchase order to a supplier, a quarter of rent paid in advance, a payroll run on the 15th and the last day of the month. The gap between those two rhythms is where most owners feel pressure, and it gets sharper when the store has to buy inventory and seasonal stock weeks before the customers show up.
That mismatch is the reason merchant cash advances exist in the retail world. Instead of a fixed monthly payment set against a long-term plan, the idea is that repayment is tied to the revenue the business is already producing. This page explains that idea in plain terms, what it does and does not solve for a New York store, and what to look at before accepting any offer.
A merchant cash advance provides a lump sum up front, and the business repays it out of a portion of its future receivables or sales. The details differ from funder to funder, including how often money is taken out and whether the amount follows daily sales or is a set figure. We do not quote terms on this page, and neither should anyone who has not looked at your bank statements. Ask for the structure in writing, and read the section on how and when payments are collected before anything else.
With us, funding runs from $25,000 to $5,000,000, and funds can arrive in as little as 24 hours once you are through the process. A FICO score of 500 or higher is considered, which matters for retailers whose personal credit took a hit during a slow year.
| Situation | The cash need | Check before you accept |
|---|---|---|
| Pre-season stock buy | Paying suppliers weeks ahead of the first sale | Will the stock sell fast enough to cover the repayment pace, or does most of it sell in the last few weeks? |
| Storefront refresh or repair | New fixtures, lighting, signage or a broken HVAC unit | Does the work lift sales, or is it a one-time cost with no new revenue behind it? |
| Slow-month rent gap | Rent and payroll continue while foot traffic dips | Is the slow stretch temporary, or is the store shrinking? Funding fixes timing, not demand. |
For illustration only, not our terms or a typical outcome. A gift shop expects to sell about $60,000 of goods across a busy autumn season, and the owner needs to pay suppliers $24,000 in September to have the shelves stocked. September sales are modest. The cash exists on paper, but it will not reach the bank account until October and November.
The question for the owner is simple arithmetic. Sales-based repayment will pull money out during the same weeks that revenue is coming in, so the owner should map the repayment pace against the week-by-week sales curve, not against the annual average. If most revenue lands in late November and December, a structure that collects steadily from the first week of October may squeeze the early weeks. That is not a reason to avoid an advance. It is a reason to ask exactly how collection works and size the amount to the buy, not to the maximum offer.
New York retailers also collect sales tax and file on a schedule, so a cash dip in the weeks before a filing can look worse than it is. Keep sales tax collected separate in your mind. It is not working capital, even though it sits in the account for a while. When you are reviewing funding, size it against your own money, not the tax you are holding for the state.
Review any offer in full before you accept it, including how and when payments are collected.
Structures differ by funder. An advance is repaid from a portion of future sales or receivables rather than on a fixed amortization schedule, so ask for the repayment mechanics in writing before deciding.
We look at about three months of business bank statements to see how money moves through your account. Card and cash deposits both show up there, so send the full statements.
Yes, buying stock is one of the most common retail uses. Match the amount to the specific purchase and think through how quickly that stock sells.
Yes. Sole proprietors can apply, and FICO scores of 500 and above are considered.
Then check how and when payments are collected, and compare that to your week-by-week sales. A mismatch is the thing to catch before you sign.
Three months of business bank statements and a 5-minute application. FICO 500+ considered. $25,000 to $5,000,000, funded in as little as 24 hours.
Apply Now →It takes about two minutes and it will not affect your credit score.
No obligation • No impact to your credit score
