(Funding options)
Four ways to fund a US small business, from $5,000 to $1,000,000. Each is explained below in plain terms; your offer sets the exact numbers.
(Option 01 of 04)
You get a lump sum now. In return the funder buys a share of your future card sales and collects it each business day until the agreed total is paid back.
Because the payment is a share, it follows your sales: a slow day pays less, a busy day pays more. Legally it is not a loan, and it usually costs more than one, so compare the total you repay.
Good for
Advance example
AFTER WIKIPEDIA, "MERCHANT CASH ADVANCE"
YOU RECEIVE NOW$20,000.00
FUTURE CARD SALES SOLD$25,000.00
COLLECTED15% OF CARD SALES
COLLECTEDEACH BUSINESS DAY
BUSY SATURDAY $6,040-906.00
SLOW TUESDAY $1,640-246.00
SLOW DAYSMALLER PAYMENT
EXAMPLE ONLY · YOUR OFFER SETS YOUR NUMBERS
(Option 02 of 04)
Money for running the business day to day: stock, rent, wages, and the weeks between paying suppliers and being paid by customers.
A business can be profitable and still short of cash when its money is tied up in stock or unpaid invoices. Working capital bridges that gap. Terms are set out in your offer.
Good for
Purchase order
HARBOR HARDWARE · PORTLAND, ME
SNOW SHOVELS X601,740.00
ICE MELT 50LB X2003,980.00
HEAT TAPE X802,320.00
SUPPLIER WANTS PAIDNOVEMBER
SHOPPERS ARRIVEDECEMBER
GAP TO COVER$8,040.00
ILLUSTRATION
(Option 03 of 04)
Payday comes round every week or two, whatever the sales were. Payroll funding covers wages when payday arrives before the money does.
Nearly half of US employers (45.7%) pay every two weeks and almost a third (31.8%) every week, according to the Bureau of Labor Statistics (February 2022).
Good for
Payroll run
BLUEBIRD DINER · EVERY 2 WEEKS
COOKS (4)6,240.00
SERVERS (6)5,112.00
DISHWASHERS (2)1,820.00
PAYROLL TAXES1,640.00
DUE FRIDAY$14,812.00
US EMPLOYERS, BIWEEKLY45.7%
US EMPLOYERS, WEEKLY31.8%
(Option 04 of 04)
If the business is paying several balances at once, such as advances, equipment notes or cards, one new balance can pay them off and leave one payment to track.
It helps when the one payment costs less, or is easier to carry, than the several it replaces. Your offer shows both numbers so you can compare.
Good for
Daily debits
BUSINESS CHECKING · ILLUSTRATION
BEFORE
ADVANCE A-212.00
ADVANCE B-145.00
EQUIPMENT NOTE-96.00
AFTER
ONE BALANCEONE PAYMENT
DEBITS PER DAY3 TO 1
CHECK THE ONE COSTS LESS THAN THE THREE
(At a glance)
| Option | Pays for | Repaid | Best when |
|---|---|---|---|
| Merchant cash advance | Anything the business needs | A share of each day's card sales | Sales are steady but uneven day to day |
| Working capital | Stock, rent, wages, bills | As set out in your offer | Money is tied up in stock or invoices |
| Payroll funding | Wages and payroll taxes | As set out in your offer | Payday arrives before the money does |
| Debt consolidation | Paying off other balances | As set out in your offer | Several payments should be one |
Amounts from $5,000 to $1,000,000. Funding can arrive the same day you are approved.