Merchant Cash Advance for Furniture Stores

IHFRA_logo_trimmedOne of Cornerstone Business Solution’s specialties is providing payment solutions for furniture stores and I am a proud member of the International Home Furnishings Representatives Association (IHFRA).  This organization is comprised of professionals and companies that service the furniture retailers.  I had the privilege of writing an article for their most recent newsletter and I’m posting it below in it’s original form.  This article was targeted to those selling to furniture retailers and to assist them in a little known finance option available to their customers, a Merchant Cash Advance.  To see the entire newsletter where this was first published, you can access the IHFRA site and newsletter here.

Money is No Problem!

As rewarding as it can be for a representative to work with furniture retailers, the job isn’t without challenges. No matter how great a salesperson you are, chances are you’ll eventually come to a roadblock where your client isn’t going to eagerly purchase your goods. There are three main reasons retailers don’t buy:

  1. They don’t want the product you are offering. Maybe they don’t like the line or don’t believe it will sell.
  2. They don’t believe or trust you. This means you’ll need to establish a solid relationship with them before they are comfortable enough to make a purchase.
  3. They can’t afford it.   While dealers may see the value and want the product, they just don’t have the money to buy right now.

The first two points can sometimes be overcome by a seasoned representative with a good offering, but many times circumstances cause a willing buyer to be without capital means. The great news is that lack of funding no longer has to be an obstacle! Traditional financing and relying on credit cards aren’t always enough to help retailers to afford more inventory-so if lack of capital is keeping your clients from buying, it’s time to offer a third option: a merchant cash advance (MCA).

Unlike traditional business loans, MCAs look at immediate cash flow and deduct micro-payments on a daily basis from an account (rather than relying on credit scores). The advance is then recouped based on credit card receipts—typically not more than 25% of daily card receipts go toward the repayment. A set amount can also be determined and deducted on a daily basis. MCAs are ideal for short-term loans (3-18 months) and are designed to secure funds quickly. And here’s more good news: your client most likely won’t even have to change credit card processors!

Setting up an MCA is fast and easy. Retailers can be pre-qualified in just minutes with a phone call, and they’ll appreciate no upfront fees and minimal documentation. Working with a cash flow specialist can boost business when dollars are tight and traditional loans aren’t an option—he/she will have multiple options for non-traditional financing and will find the right finance option based upon the individual needs of the retailer.

So just how much money is available through an MCA? Amounts range from $5-$150K, which can be used to add inventory, put toward marketing, or increase staffing. That’s great for your client and good for you, too, if you build a relationship with a loan specialist who will pay a finder’s fee on every referral funded.

As an additional incentive, you’ll see your client’s store prosper and increase orders. I’ll share one example of a successful furniture retailer I’ve personally seen tap into this non-traditional source of capital. Throughout the recession, he’s grown from one to three stores—and his main location has seen its sales double! This is a direct result of an MCA used wisely to increase inventory, marketing, and locations.

Isn’t this success story inspiring? If you want to increase your own sales, helping your clients grow theirs is the first step—and an MCA is a key way to achieve this goal. If you haven’t yet considered offering this option, there’s no time like the present to start!


Robert McBeath is a Certified Payment Professional and President of Cornerstone Business Solutions.  He has extensive experience offering merchant services and cash advances to home furnishing retailers. Visit or call him at 888.979.4731.

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