Merchant Financial

Merchant Financial offers working capital credit lines for growing companies.  Financing is available for all types of businesses, including service organizations.

Among the industries that we finance and thoroughly understand are:

  • Textile and apparel
  • Food and liquor distributors
  • Jewelry
  • Plumbing supplies
  • Furniture
  • Electronics
  • Watches
  • Sporting goods
  • Light manufacturing
  • Cosmetics
  • Metal fabricators
  • Importers of consumer goods
  • Packaging
  • Housewares.

Service companies, including:

  • Security guards
  • Office maintenance
  • IT consulting
  • Temporary service companies
  • Warehousing and freight forwarders
  • Professional firms.

At  Merchant,  we look at the management, future prospects and growth opportunities available to the business.  We take the time to understand your business and will come up with a plan to enable you to maximize your profits.  We solve the problem of seasonal peak needs and the cash squeeze caused by rapid growth and limited capital.

Warehouse floor

Services Offered:

Revolving credit lines are set up, based on clients’ projections, up to an agreed upon cap, and with advance formulas against eligible accounts receivable, inventory, and other acceptable collateral.

As receivables and inventory grow, availability automatically increases.

Eligibility of collateral is defined in the loan documents.  Receivables are tracked daily, and inventory periodically, as agreed.  Collections flow into a lockbox and are credited against the loan immediately.  Clients can draw funds against availability, as needed.  Accordingly, clients can operate “zero balance” checking accounts and only pay interest on funds in use.  Because collections are being credited to the loan daily, this minimizes interest costs. 

No compensating balances are required, nor are “clean-ups.”  Covenants in the loan documents are minimal.

We constantly review the client’s needs and performance, and are flexible in amending the parameters of the credit lines as needed.

Information about collections and current status of accounts receivable collateral is available online at all times.