Articles from Southmoor Business Funding in Alice, TX on repair shop equipment, card-sales advances, UCC filings, lender types and contractors' service vans, each worked with invented figures. Four short cases on this page show cash steps before borrowing, a card processing statement, a repair-or-replace payment and a stock order paid down on a line.
A tax bill at a Jim Wells County, TX convenience store: cash steps to take before any draw
A convenience store with a tax bill coming due can loosen up cash before it borrows anything:
- Order slower-moving stock in smaller lots for a few weeks, so less cash sits on the shelves.
- Ask the main suppliers whether the next invoice can carry a later due date.
- Move a large reorder so it does not land in the same week as the tax payment.
- Collect any open house-account balances.
- Move a slice of every week's deposits into a second account until the tax payment goes out.
If those steps leave a gap, a short credit line draw or a working capital loan can cover the rest. The credit line page works through a wholesaler's tax bill with invented figures.
Reading a card processing statement before an Alice, TX sit-down restaurant weighs a card-sales advance
A merchant cash advance is collected from card sales, so the card processor's monthly statement is the record that shows what an advance would draw on. For a sit-down restaurant in Alice, TX, these lines on the statement are worth reading first:
- Total card sales for the month, before refunds
- Refunds and chargebacks, which come out of the same batches
- Processing fees, and whether they are taken daily or once a month
- The days each batch settles into the bank account
- Several months side by side, to see how far one month's card sales can sit from another's
The advance itself is not a loan: a provider buys part of future card sales for a fixed total. The motel article follows that total through a week of card batches.
Repair or replace: a washer at a Jim Wells County, TX laundromat, priced both ways
Illustration only, invented figures: a laundromat in Jim Wells County, TX has a $1,385 repair quote for a front-load washer, or it can replace the machine for $6,940 on a 36-month equipment loan at an 11.6% annual rate.
In this invented case the replacement payment is $229.18 a month, $8,250.48 across the 36 payments, of which $1,310.48 is interest. The invented $1,385 repair is a little more than six of those payments ($1,375.08), paid once.
Which one fits turns on how long the repaired machine keeps running. A repair paid in one go can sit on a short working capital loan or a line draw, and a replacement on equipment financing. Hooking the new washer to water, drain and power is property work outside this site.
Personal and laundry services (NAICS 812), the sector that takes in laundromats, counted 10 employer establishments in Jim Wells County, TX in 2023, and 5 of them had fewer than five employees (County Business Patterns).
Phone cases and chargers at an Alice, TX cell phone store, drawn on a credit line and paid down every two weeks
A cell phone store that buys cases, chargers and screen protectors by the carton pays the distributor up front and sells them a few at a time.
Illustration only, invented figures: a $5,280 accessory order drawn on a credit line at a 12.9% annual rate and paid down by $1,760 every 14 days costs $26.13, $17.42 and $8.71 in interest over the three invented periods, $52.26 in all.
An inventory financing request is the other route for a large stock order. A merchant cash advance, collected from card sales and priced by a factor rather than a rate, is a third.
The six full articles: scan tools and engine-job parts at a repair shop, how an advance is collected from a motel front desk, card and cash sales under an advance at a store, UCC filings and their release, credit unions, community banks and online lenders, and a plumbing and HVAC shop and its second van.
By Southmoor Business Funding · Updated