Emergency Business Funding for Repairs
Emergency business funding when equipment breaks mid-season.
A merchant cash advance can cover a repair that gets your sales back. Funders want to see an account that was healthy before the breakdown and a repair that brings it back, so have the estimate and your recent statements ready.
Who should read this: owners with something broken right now and an estimate in hand.
What does a funder want to see on a repair file?
A funder wants to see an account that was healthy before the breakdown and a repair that brings it back. Useful items:
Replacing the machine outright is an Equipment decision, and covering lost days while it's fixed is closer to Cash flow. A body shop's version of this is on the Auto repair page.
- Statements from before the problem, showing normal deposits
- The repair estimate or invoice
- A note on how many days of sales the breakdown has cost
- Whether insurance may cover part of it, and when
A dip in the latest statement is expected on a repair file. Explaining it up front keeps a funder from reading the dip as a trend.
We're not a funder.
We don't fund deals ourselves. We shop yours with funders who do, so you see more than one offer.
Only funders that fit.
Your file goes to funders that work with your industry and your deal size. Nobody else sees it.
You make the call.
Every offer comes to you in writing. Nothing happens until you pick one.
- What it costs to apply
- Nothing. Applying costs you nothing, and Afterfirst MCA charges you no fee.
- Credit
- Ask us how each funder checks credit before you agree to anything.
- Speed
- We call you back and talk with you before your file goes to any funder.
- Offers
- Every offer shows the total payback, the payment amount, how often it comes out, and the term.
Documenting a breakdown for emergency business funding
You document a breakdown with the repair estimate, the date the problem started and a short note on lost sales, supported by the statements. A funder then reads the dip as a one-time event.
A written repair estimate
A written estimate from the repair company shows the cost and the scope. Photos can help, but the estimate carries the weight.
A walk-in cooler failure
A walk-in cooler failure can mean spoiled stock and a closed kitchen. The statement shows lower deposits and a large supplier reorder in the same week.
Linking lower deposits to closure dates
A note tying the lower deposits to the closure dates lets the funder see cause and effect. Without it, the dip is just a bad week.
Cooler down on the ninth, back on the twelfth
A breakdown note might read: cooler failed on the ninth, kitchen closed four days, stock replaced on the twelfth, repair invoice attached. That is all a funder needs.
Claim numbers and adjuster contacts
If the loss is insured, add the claim number and the adjuster's name to the note. It shows the funder another payment may arrive later.
Should you wait for the insurance check?
You should weigh what each closed day costs in lost sales against what the advance costs in dollars. If insurance will pay in a few weeks and the business can limp along, waiting may cost less. If every closed day loses thousands in sales, the advance cost may be smaller than the loss. When insurance money arrives mid-term, it doesn't reduce the remittance unless the contract allows early payoff.
The Bank statement guide shows how funders read the dip around a closure, and How a merchant cash advance works covers the terms.
Sizing a repair advance
A repair advance should match the invoice plus a small cushion for what goes wrong once the work starts, not the maximum offer. A larger advance means a larger payment on an account that just took a hit.
When something breaks
Can I get a merchant cash advance after a bad month caused by a breakdown?
Some funders will look past one weak month if earlier statements are steady and the cause is documented. Include the repair invoice and a short explanation. Each funder decides how much weight to give the recent month.
Does insurance money change the advance?
An insurance payment doesn't change the advance terms by itself. Some contracts allow early payoff at a discount, which the insurance money could fund. Check the prepayment section of the contract.
Is a repair a good reason for a second position?
A repair that restores lost revenue is one of the clearer reasons for a second position. The combined daily payments still has to fit the account once revenue returns. Add both debits together before signing.
Sources
- The SBA's Disaster assistance page describes physical damage loans to repair or replace disaster-damaged property for businesses of all sizes after declared disasters; check it before taking emergency business funding if a declared disaster caused the damage.
Afterfirst is not a funder; all offers are subject to funder underwriting.
Cost, credit, speed and stacking
Cost
Credit
Speed
Stacking
Send one file.
See what fits.
Call 877-FUND-654 with questions.