Industries

Working Capital and Merchant Cash Advance for Retail and E-commerce

Retailers and online sellers have to buy inventory before the busy season pays for it. Apex Funding Services compares merchant cash advance and bridge funding offers from multiple funders with one application, so you can stock up, launch a product or cover a slow stretch without waiting on a bank. We are a broker, not a lender.

Featured option: working capital through a merchant cash advance

A merchant cash advance provides a lump sum in exchange for a share of future card and bank receipts. Because it is sized on sales volume, it fits stores and online brands with steady card revenue, including owners whose credit would not get them a bank line.

Why owners choose it:

  • Speed: decisions often within 24 to 48 hours, with funding soon after approval

  • Sized on revenue: offers are based mainly on your deposits, not just your credit score

  • Repayment matched to how you get paid: split funding or lockbox for card-heavy businesses, so payments rise and fall with sales, or a fixed ACH payment for businesses paid by check, ACH or invoice

  • Limited paperwork: usually bank statements and a short application, with no real estate collateral. Most funders do ask for a personal guarantee of performance

Common uses:

  • Holiday and seasonal inventory buys

  • Marketing and advertising pushes with proven returns

  • Store build-outs and new locations

  • Website and e-commerce upgrades

  • Covering supplier bills during slow months

How repayment works: split funding, lockbox or ACH

  • Credit card split funding: your card processor automatically sends an agreed percentage of each day's card batch (the holdback) to the funder before the rest settles to you. Payments rise and fall with sales.

  • Lockbox funding: card receipts are deposited into a controlled account, the funder's share is taken out and the balance is passed to you. Used when your current processor cannot split payments.

  • ACH: a fixed daily or weekly debit from your business bank account.

Fit for retail: strong for card-heavy stores. Split funding or lockbox works well when most sales are paid by card, in store or online. Marketplace sellers paid through Amazon, Etsy or similar payouts are usually repaid by ACH instead, because those payouts do not run through your own processor.

Split funding usually means processing with a processor that works with the funder. Before switching, check for early termination fees on your current processing agreement and compare total processing cost as part of the offer.

Bridge funding

Bridge funding is short-term capital that covers the gap until money you are expecting arrives, such as a customer payment, a loan closing or your busy season. It is typically structured as a short-term advance or loan and repaid when the expected cash comes in. Common bridge situations:

  • Buying peak-season inventory months before it sells

  • Bridging until a bank line or SBA loan closes

  • Funding a large wholesale order until the retailer pays on net terms

  • Covering cash flow while marketplace payouts are held or delayed

All your options at a glance

We are not tied to one product. Here is how the main options compare for retail and e-commerce:

  • Merchant cash advance (working capital): fastest and easiest to qualify for, and usually the most expensive. Best for short-term needs with a clear payback.

  • Revenue-based financing: similar to an advance, repaid as a percentage of revenue, sometimes at a lower cost for stronger businesses.

  • Short-term working capital loan: a fixed amount with fixed daily or weekly payments over 6 to 24 months.

  • Revolving line of credit: ideal for recurring seasonal inventory once you have consistent sales history and reasonable credit.

  • Inventory financing and asset-based lending: for brands holding significant inventory, though funders discount inventory heavily.

  • Purchase order financing: pays your supplier directly when a large retailer places an order you cannot front.

  • Invoice factoring: only for wholesale and B2B sellers who invoice on net terms.

Traditional alternatives

If your business has the history and credit for it, traditional financing is usually the cheapest money available:

  • SBA 7(a) loans: up to $5 million for working capital, equipment, expansion or buying a business, with terms up to 10 years for working capital and equipment

  • SBA 504 loans: long-term, fixed-rate financing for real estate and major equipment

  • Bank term loans: a lump sum repaid monthly over several years

  • Bank lines of credit: draw and repay as needed, paying interest only on what you use

  • Bank equipment loans: the equipment itself secures the loan

These cost less, but they take longer, often 30 to 90 days, and usually require two or more years in business, good personal credit, tax returns, financial statements and sometimes collateral. If you qualify, we will tell you, and we can refer you to SBA and bank lenders. A common approach is to use a merchant cash advance or bridge funding now and refinance into bank or SBA financing once it closes.

For retail and e-commerce: Established retailers with two or more years of profitable tax returns are good candidates for a bank line of credit to cover seasonal inventory, and SBA 7(a) loans are common for acquisitions and new stores.

Credit card processing

We can set up or review in-store POS systems, e-commerce payment gateways and combined in-store and online processing, with transparent pricing such as interchange-plus.

Processing is provided through our processing partners. Send a recent processing statement and we will show you your effective rate and fees, with no obligation to switch.

Before you sign

Speed costs money. A merchant cash advance is a purchase of future receivables, not a loan, and it usually costs more than bank financing. Before you accept any offer, we walk you through:

  • The amount you receive and the total payback

  • The factor rate, holdback percentage or daily and weekly payment

  • How reconciliation works if your sales drop

  • Fees deducted at funding

  • How a new advance fits with any advance you already have. Stacking too many positions is the fastest way into a cash flow crisis, and we will tell you if it is a bad idea

Approval, amounts, rates and terms are set by the funder. Submitting a request does not guarantee approval.

What funders look at

  • Monthly sales across store, website and marketplaces

  • Seasonality and year-over-year trends

  • Gross margin and inventory turnover

  • Bank balances and existing advances

Documents to have ready

  • Last 3 to 6 months of business bank statements

  • Card processing or marketplace payout reports

  • Owner ID and a voided business check

Ready to see what you qualify for? Start your application or call (516) 474-3776. One application, multiple funders, no obligation to accept.