What is the best time of year to seek working capital?

Before the pressure point, not during it. Pre-holiday and post-holiday gaps are predictable.

Can a single-store owner apply?

Yes, including sole proprietors.

Do I have to use it for inventory?

Working capital covers operating costs generally, such as rent and payroll. Terms vary by offer.

Working Capital for Texas Retail Stores

A calendar of retail pressure points

January and February: After the holidays, traffic drops while rent and payroll continue.
Late summer: Back-to-school and fall stock is bought before shoppers arrive.
October and November: Holiday inventory is purchased well ahead of the sales it is meant for.
After a major event: Texas weather, including hurricane season from June 1 to November 30 on the coast, can close stores and interrupt sales while costs go on.

Fixed costs hide in plain sight

Every retail owner knows rent and payroll, but there are others: insurance, utilities, software subscriptions, card processing and the annual Texas franchise tax report, due May 15 for entities subject to it. A store at or below the no-tax-due threshold still files the Public Information Report or Ownership Report. These are details to confirm with the Comptroller, not tax advice from us.

The point is that the bank balance has to carry all of them, not just the big two.

A gap worked through, for illustration

For illustration only, with made-up figures: a gift shop pays $9,000 a month in rent, payroll and other fixed costs, and in January and February sales cover only $5,000 of that. The monthly gap is $4,000, and over two months it is $8,000, plus a restocking order of $12,000 ahead of the spring season. The total need is about $20,000, below the range we serve, which would suggest a supplier arrangement or a smaller solution. A larger shop with the same pattern at four times the scale would land well within it. These numbers are not our terms.

How much to ask for

List all fixed monthly costs.
Estimate the lowest sales month you realistically expect.
Subtract sales from costs. That is the monthly gap.
Multiply by the number of months the gap will last.

Compare the result to the range we fund: $25,000 to $5,000,000. If your number is far below, a supplier arrangement may serve you better.

Cash you hold for other people

Retail balances include money that is not really yours: sales tax collected from customers, gift card liabilities and deposits on special orders. When a store is short, it is tempting to dip into those. Working capital can be a cleaner way to cover the shortfall, keeping tax and customer money where it belongs. For sales tax, the Texas Comptroller assigns monthly or quarterly filing and sets a 0.5 percent discount for timely filers, so on-time payment has a small reward as well as a legal reason.

How the process works

The application takes about five minutes and uses a soft credit pull. Some applicants are funded in as little as 24 hours. Sole proprietors can apply. We do not state rates or terms on this page; they are specific to each offer.