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Francisca Hardy

Merchant Financing 101: Everything You Need to Know

Updated: Nov 21



The holiday season can be a make-or-break period for many B2C businesses, where credit and debit card transactions often reach their peak. This busy season is the perfect opportunity to stock up on inventory, launch new promotions, and manage the extra expenses that come with high customer demand. If your business relies heavily on card transactions to drive revenue, merchant financing could be the flexible, fast funding solution you need to cover expenses, invest in growth, and maintain momentum through the holidays. This solution allows you to navigate seasonal demands with ease, ensuring your business is ready to make the most of the holiday rush.


What Is Merchant Financing?


Merchant financing, or revenue-based financing, allows businesses to receive a lump sum of cash upfront in exchange for a portion of future credit and debit card sales. This type of financing is ideal for businesses with fluctuating revenue, as repayment is flexible and scales with your daily sales. With no need for fixed collateral, it’s an accessible option for small businesses preparing for a busy holiday season.


How Merchant Financing Helps Your Business Thrive


  • Quick Access to Capital: In the fast-paced holiday season, opportunities don’t wait. With Berkman Financial’s streamlined process, qualified businesses can receive funds within 24–48 hours. Use these funds to increase inventory, hire extra staff, or invest in holiday advertising to attract shoppers.


  • Flexible, Sales-Based Repayment: Merchant financing aligns repayment with your daily sales. This flexibility is valuable during the holiday season when daily revenue varies widely. When sales are high, repayment adjusts accordingly, and if things slow down post-holiday, your payments do too, preserving cash flow.


  • No Fixed Collateral Requirement: With Berkman Financial, most merchant financing options require no collateral, allowing for faster approval and lower risk to you. This structure provides the freedom to use your funding when and where it’s needed, without lengthy valuations or asset requirements.


  • Accessible Approval Process: Merchant financing is an excellent option for businesses with limited credit history or a lower credit score. Berkman Financial focuses more on your business's cash flow and transaction volume, making approval easier and faster, just in time for the holiday rush.


Advantages of Merchant Financing


  • Funds for Any Seasonal NeedUnlike traditional loans, which may restrict fund use, merchant financing allows you to allocate capital as you see fit. Whether you’re purchasing inventory, rolling out a holiday campaign, or creating a festive storefront display, you have the freedom to invest in what matters most during the holiday season.


  • Fixed Borrowing CostsWith Berkman Financial’s merchant financing, you’ll know the total borrowing cost upfront, regardless of how quickly you repay. This transparency helps with holiday budgeting and eliminates surprises, ensuring you won’t pay more if the season extends longer or post-holiday sales come in gradually.


  • Pairing with Other FundingThe holiday season often demands a higher budget, and combining merchant financing with other funding options, such as a business line of credit, can provide a powerful advantage. Use the line of credit for unexpected expenses, paying interest only on what you borrow, giving you a reliable safety net without added costs.


How to Qualify for Merchant Financing with Berkman Financial

Berkman Financial works with a broad range of businesses and has straightforward criteria to make the process accessible. Here’s what you’ll need to get started:


  • Consistent Credit Card Sales: A stable volume of credit card transactions of at least $10,000 to supports merchant financing.

  • Credit Score: Although considered, credit score is less of a barrier, making it accessible even to those with a limited credit history.

  • Financial Health: Berkman Financial reviews your business’s cash flow, bank statements, and overall stability.

  • Industry Fit: Retail and service-based businesses with seasonal revenue spikes are especially suited to merchant financing.

  • Operational History: Generally, businesses need to be operational for at least 6 months, ensuring stability and a track record of revenue.


Maximize Your Holiday Sales Potential with Berkman Financial


The holiday season is your chance to capture new customers, increase sales, and build brand loyalty. Berkman Financial’s merchant financing provides fast, flexible funding so you can seize holiday opportunities and set up for a successful year. Contact us or complete a quick online application to get started—let Berkman Financial help make this your best holiday season yet!

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