Merchant Cash Advance
Receive upfront capital in exchange for a percentage of your future sales. Repayment adjusts automatically with your revenue, so you pay more when business is strong and less during slower periods.
Overview
What Is a MCA?
Our Merchant Cash Advance program delivers immediate working capital by purchasing a portion of your future receivables at a discount. Unlike traditional term loans with fixed monthly obligations, your repayment is directly tied to your daily sales volume. This structure ensures that your cash flow remains healthy regardless of seasonal fluctuations or market conditions. We fund amounts ranging from $10,000 to $2,000,000, with approvals typically completed within 24 to 48 hours. Our funding advisors work with you to determine a factor rate and holdback percentage that aligns with your business's revenue patterns, ensuring repayment never becomes a burden on your operations.
Key Features
- Funding amounts from $10,000 to $2,000,000
- Approval decisions within 24 to 48 hours
- Repayment automatically adjusts to your daily sales volume
- No fixed monthly payment schedule
- No collateral or personal real estate liens required
- Simple factor rate pricing with full cost transparency
Process
How It Works
Apply
Submit a streamlined application along with your last four months of business bank statements. No extensive paperwork or detailed business plans required.
Review & Approval
Our funding advisors evaluate your revenue history and business performance to structure an advance tailored to your cash flow. Most approvals are issued within 24 hours.
Receive Funds
Once you accept the terms, capital is deposited directly into your business bank account, typically within one business day of approval.
Repay Through Sales
A fixed percentage of your daily sales is automatically remitted until the advance is fully repaid. When sales are high, you pay down faster. When sales slow, your payments decrease proportionally.
Benefits
Why Choose a MCA?
Cash flow remains stable because payments scale with revenue
No fixed monthly obligations that strain your budget during slow periods
Speed of funding allows you to capitalize on time-sensitive opportunities
Approval is based on business performance, not solely credit scores
No restrictive covenants or usage limitations on funds
Eligibility
Qualification Requirements
- Minimum 4 months in business
- At least $10,000 in monthly revenue
- Active business bank account with consistent deposit history
- Minimum monthly credit card sales of $5,000 (for card-split programs)
- No open bankruptcies
Use Cases
Common Uses
- Purchasing inventory ahead of peak season
- Covering payroll during revenue gaps
- Funding marketing campaigns and customer acquisition
- Managing unexpected expenses or emergency repairs
- Bridging cash flow between large receivables
- Expanding to a new location or service area
FAQ
MCA Questions
A merchant cash advance is a purchase of your future receivables, not a loan. This distinction means there is no interest rate in the traditional sense. Instead, you agree to a factor rate that determines the total repayment amount. Repayment is made through a percentage of daily sales rather than fixed monthly installments.
A factor rate is a multiplier applied to your advance amount to determine the total repayment. For example, a $100,000 advance with a 1.30 factor rate means you repay $130,000 in total. Factor rates typically range from 1.15 to 1.50, depending on your business's risk profile and revenue consistency.
We may perform a soft credit inquiry during the application process, which does not impact your credit score. Since a merchant cash advance is a commercial transaction rather than a loan, it is not reported to personal credit bureaus. However, defaulting on any financial obligation can have indirect consequences on your creditworthiness.
Most applications are reviewed and approved within 24 hours of receiving complete documentation. Funds are typically deposited into your business account within one business day following approval and acceptance of terms. In many cases, you can have capital in hand within 48 hours of applying.
Yes, renewal advances are available once you have repaid a significant portion of your existing advance, typically 50% or more. Our funding advisors will assess your current repayment performance and business revenue to determine eligibility for additional capital. Many of our clients utilize renewal advances to support ongoing growth.
Ready to Get Started with a MCA?
Apply today and a funding advisor will walk you through your options.