Merchant Cash Advance in Denton: A Town With Two Campuses

Denton in brief

Denton is the county seat of Denton County. At 139,869 residents in 2020 it is the 20th most populous city in Texas and the 10th most populous in the Dallas-Fort Worth metroplex, according to Wikipedia. Denton County was formed in 1846 and the city was incorporated in 1866; both were named for pioneer John B. Denton. A railroad arrived in 1881, and the University of North Texas (1890) and Texas Woman's University (1901) distinguished the city from its neighbors.

What two campuses do to cash flow

Businesses near the universities see their strongest sales when classes are in session. Move-in, football season and graduation bring bursts, and summer is thinner. Meanwhile rent, payroll and insurance do not pause, so a campus-area owner usually has a cash cushion problem more than a sales problem.

Other owners in the metroplex, for example those who supply or haul for oilfield and construction customers, run on different cycles. If your business serves more than one, tell the funder about each one; a blended calendar is easier to explain than to guess.

Growth, rent and the cash cushion

Denton sits in the northern part of a fast-growing metroplex, and landlords price accordingly. A business that signs a lease at today's rent should check it against its weakest quarter, not its average. For illustration only, a cafe paying $6,000 a month in rent with summer sales that cover only $4,500 of it is short $1,500 a month for three months. That $4,500 is the cushion to build or borrow against, and it is a different number from the cafe's annual sales.

A short test for any proposal

1. Date test: will the money arrive before the weeks it is meant to fund?
2. Slow-week test: could the business make a repayment in its worst week of the year?
3. Total test: do you know the total repaid, in dollars?
4. Exit test: do you know what happens if you pay early?

A merchant cash advance is generally described as money received up front and repaid from future sales. Structures vary, so get the answers to all four tests in writing.

Where Denton owners tend to look

• Restaurants near campus and downtown: Denton restaurant funding.
• Builders and trades in a growing county: Denton construction funding.
• Practices serving residents and students: Denton healthcare funding.

Applying

Requests run from $25,000 to $5,000,000, with funding in as little as 24 hours once the application is complete. The application takes about five minutes, uses a soft credit pull, and sole proprietors can apply. Apply here.

Other structures: working capital, equipment financing, lines of credit, term loans and same-day funding. If credit is a concern, read this page. Lewisville, Flower Mound, Little Elm, The Colony, Corinth and Highland Village are nearby; see Denton funding overview.