Short answer
Merchant Fund Express funds existing, operating franchise locations based on their own revenue. It does not provide startup capital to open a first franchise, financing to purchase a franchise from another owner, or real-estate loans. If your location is not open yet, you need a lender that underwrites startup plans, usually through a bank or SBA program, and you can come back once the store has an operating history and deposits.
Two different kinds of funding
| Existing location | New location or purchase | |
|---|---|---|
| What is reviewed | The store's actual deposits and payments | Business plan, projections, owner net worth and experience |
| Typical sources | Working capital, line of credit, equipment financing | Bank and SBA loans, franchisor programs, owner equity |
| Speed | Hours to days | Weeks to months |
| Merchant Fund Express | Yes | No |
Why an open store is reviewed differently
An operating store has a track record in its bank statements: what comes in, what goes out and what it already owes. That record is what Merchant Fund Express underwrites, which is why the review can happen in hours and why tax returns are not needed to apply. A store that has not opened has none of that. Its numbers are projections, and projections are underwritten very differently, usually with collateral, a down payment and a long approval process.
Common in-between situations
I bought an existing store last month
If the store has been operating and its deposits now flow into your entity's account, apply once you have statements showing your ownership period. If you only have the previous owner's history, ask the specialist what is possible.
I own three stores and am opening a fourth
Your open stores can be funded for their own needs. The fourth location's build-out is startup capital. See multi-unit funding.
I am converting my independent shop into a franchise
If the business is already operating, its deposits count. Conversion costs like signage and equipment can be reviewed like any other need of an operating business.
Where to look if you are not open yet
Your franchisor
Many franchisors list lenders familiar with the system or describe financing options in their disclosure document.
SBA-backed lenders
The SBA Franchise Directory lists brands eligible for SBA review; your bank can explain the process.
Equipment vendors
Some vendors finance their own equipment for new sites.
Come back after opening
Once your store has a few months of deposits, apply here for working capital or equipment.
If you are already open, what to send
Sole proprietors are eligible. 500+ FICO accepted. Spanish-speaking support available.
A quick test: which side are you on?
All four true: you are an existing owner and can apply with Merchant Fund Express now. Any one false: you are probably still in the new-location stage, and the right next step is your franchisor's financing guidance or a bank. Revisit once the store has been open and depositing for a few months.
Already open? Here is what you can get
Once your location is operating, Merchant Fund Express funds it, and opening a second location off an open store is a different conversation. The full menu for existing owners: franchise business loans, merchant cash advances, revenue-based financing, lines of credit, equipment financing, working capital and, for franchises that bill other businesses, invoice factoring.
Why we are upfront about this
Applying for the wrong kind of funding wastes your time and can mean a hard credit inquiry somewhere that was never going to say yes. Telling you early that startup, acquisition and real-estate financing are not offered here is meant to get you to the right source faster.
Owner questions, answered
Will you fund my first franchise?
No. Merchant Fund Express funds operating businesses. A store that has not opened needs startup financing elsewhere.
Do you finance buying an existing franchise from another owner?
No. Acquisition financing is not offered. Once you own and operate the store, its needs can be reviewed.
Do you offer real-estate financing for a franchise building?
No. Land and building loans are not offered.
How long does my store need to be open?
There is no single published cutoff for every product; the review needs enough deposit history to show how the store performs. Ask the specialist.
Can my open store help me fund the next one?
It can fund its own needs. Build-out of a new location under a new entity is startup capital, which is not offered.
Keep going
Merchant Fund Express is a separate company with no franchisor ties. Terms depend on the business's revenue and history.