Working Capital & Merchant Funding

Most working-capital offers reviewed through BSV are structured as a purchase of a portion of future receivables rather than a fixed-term loan: a funding partner advances a sum, and repayment is collected as a percentage of daily card or bank sales until the advance is satisfied. Because the amount collected each day moves with sales volume, a slower week typically means a smaller repayment that day rather than a fixed installment regardless of revenue.

Underwriting for this type of funding leans heavily on processing history — average monthly volume, deposit consistency, existing debt or advances already on the books, and time in business — rather than solely on personal credit score or years of tax filings. That's the main reason merchants who wouldn't qualify for a conventional term loan are sometimes still eligible here: the review is built around cash flow evidence a payments processor already has visibility into.

Terms, factor rate, holdback percentage and total repayment amount are disclosed in the offer before you sign, and a specialist walks through exactly what a daily or weekly repayment looks like against your typical batch so there are no surprises once funding begins.

A restaurant needing to replace a failed walk-in cooler before a busy weekend, a retailer buying inventory ahead of a seasonal peak, a salon financing a build-out for a second chair or room, and a contractor covering payroll while waiting on a large receivable are all typical, reasonable uses of this kind of funding. In each case the business has an established processing history and a specific, revenue-generating or urgent use for the funds.

It fits less well as a substitute for addressing an underlying cash-flow problem, or for a business with inconsistent, seasonal-only volume and no plan for how repayment lines up with revenue. A specialist reviewing your file will ask what the funds are for and how repayment maps to your sales pattern before recommending an amount, not just whether you qualify for the maximum available.

Before presenting funding options, we review recent processing statements or bank deposits, any existing advances or loans already collecting against your revenue (stacking multiple advances is one of the most common ways merchants get into trouble), your seasonal volume pattern, and the specific purpose for the funds. We also confirm you understand the difference between a factor rate and an interest rate, since they are calculated differently and are easy to confuse when comparing offers.

The most common pitfall we see is a merchant accepting a second or third advance on top of an existing one without checking how the combined daily holdback affects cash flow — stacking can leave a business collecting less on card sales than it needs to cover payroll or rent. We flag existing obligations during review specifically to avoid that outcome.