Merchant Cash Advances
Our merchant cash advances (sometimes called MCA loans or MCA funding) provide fast funding to support the growth of your business, purchase equipment, or pay the bills.
Applying is free and won’t affect your credit score.
5 Minute Application
Short form to fill out, no paperwork or collateral.
Same Day Funding
Funds in as little as 24hrs or 1 to 3 days max.
Bad Credit Accepted
A poor credit score of FICO 550 or above is accepted.
No Hard Credit Check
Applying won’t affect your credit score.
Get a Cash Advance for Your Business Today
Use your business’s future credit card sales to get the cash injection your business needs to continue to succeed.
In as little as 24 hours, you can secure an MCA loan in exchange for a portion of future credit card sales without the need for a perfect credit score or extensive paperwork.
MCA Offer Breakdown
|$5,000 – $900,000
|3 – 36 months
How To Get A Merchant Cash Advance?
To get a cash advance from MCashAdvance complete these 4 easy steps:
1. Complete the Online Application
Enter some basic financial and business information and immediately find out if you pre-qualify for an MCA.
2. Submit Your Documentation
Upload and submit your business’s bank account statements for the previous 3 months for review.
3. Get a Funding Offer
An underwriter will look over your application and if everything checks out, they’ll send you a funding offer.
4. Receive Your Cash Advance
Accept the funding offer and sign the contract and the funds will be deposited directly into your bank account.
Are We a Match? Check Our Minimum Requirements
To qualify for a cash advance from MCashAdvance, you must meet these 4 requirements:
personal FICO score
business annual revenue
Who can apply?
You can apply for an MCA if you’re a US citizen or resident over the age of 18 years of age.
To find out the most common requirements that MCA providers ask for, read qualification requirements for an MCA.
The Difference Between Merchant Cash Advances and Loans
|Loan Features Comparison
|Pre-qualify in seconds, same-day funding, no hard credit check, no paperwork.
|Long application process, hard credit check, lots of paperwork.
|Long application, credit check, lots of paperwork like business plans.
|Less than 2 hours.
|Time to Funding
|Same-day funding, 1-3 day average.
|Credit Card Sales.
|Credit score and collateral.
|Credit score and collateral.
Industries We Have Provided Cash Advances To
Capital to Move Your Business Forward,
Not to Hold It Back.
Our cash advances are tailored to your unique business and current financial circumstances. We’ll provide funding offers based on what we believe will move your business forward and not hold it back.
Merchant Cash Advances Explained
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is an alternative way for small businesses to get business funding. It’s quick and easy because approval mainly depends on steady monthly credit card sales. Unlike regular business loans, MCAs have lower credit requirements, less paperwork, and no need for collateral, resulting in higher approval rates.
How Does a Merchant Cash Advances Work?
When you get a merchant cash advance from MCashAdvance, you’ll receive an upfront lump sum of funds. In exchange, we will deduct a small percentage of your daily credit card sales revenue until the advance is fully repaid.
These repayments are automatically deducted each day from your merchant processing account or business bank account, simplifying the repayment process. The agreed-upon daily deduction percentage typically ranges between 10% and 25% of the total amount of daily credit card transactions.
What Can Merchant Cash Advances Be Used For?
There are no restrictions on what merchant cash advance funding can be used for, as long as the funds are used for business purposes. Typically, they are used to address short-term financial needs.
The 5 most common uses include:
- Cashflow Support
- Working capital
- Cover unforeseen expense
- Purchase Inventory
- Equipment Purchases
Read the uses of MCAs in business for a more detailed list of what MCAs can be used for.
How Are Merchant Cash Advances Calculated?
MCAs don’t use interest rates because they are not considered business loans. Instead, they use a fixed fee known as a factor rate.
Here’s a breakdown of how an MCA is calculated:
Advance Amount: MCA providers decide how much they are willing to advance based on a percentage of your average yearly credit card sales (typically between 50% to 250%).
Factor Rate: Next, they determine the factor rate, typically ranging from 1.1 to 1.5 based on the providers risk assessment of your business. Read more about factor rates and fees charged by various MCA providers.
Holdback Percentage: Finally they determine the holdback percentage, which is a percentage of your daily credit card sales that they’ll collect as repayment. This percentage is typically between 10% and 20%.
It’s important to grasp these calculations as they form the basis of an MCA offer, as shown in the cash advance example below.
Merchant Cash Advance Example
This table shows an example of a $10,000 Merchant Cash Advance (MCA) offer you might receive.
Based on your business’s financial health the MCA company decides on a factor rate of 1.15 and will deduct(holdback) of 10% of your daily credit card sales.
Each day, the company will take about $200 from your credit card sales. This means you’ll repay the total of $11,000 in roughly 5.5 months. Over a year, the cost of this advance, also known as the APR, would be around 21.82%.
Use this MCA calculator to estimate how much an MCA will cost based on different amounts, factor rates, and holdback rates.
|10% of Monthly Credit Card Sales
|Monthly Credit Card Sales
What Are The Pros And Cons Of A Merchant Cash Advance?
Before you consider any type of alternative financing, including an MCA, it’s essential to weigh both the advantages and disadvantages:
- Simple application process
- Quick decision
- Lower eligibility requirements
- No collateral required
- Fast funding
- No restrictions on funds usage
For more Pros, read 20 benefits of an MCA.
- More expensive than loans
- Daily repayments may hurt cash flow
- Shorter repayment schedule
- Won’t improve credit score
- Cash-only businesses are not eligible
- No early repayment benefit
For more Cons, read 10 drawbacks of an MCA.
Who Should Apply for MCA Funding?
Any business that processes credit and debit card transactions and needs access to fast funding but falls short of banks’ stringent lending criteria should consider applying for MCA funding.
Even if your business has bad credit, no collateral, a short operational history, or imperfect financial history, it is still eligible for MCA funding from MCashAdvance because the most important requirement is strong monthly credit and debit card sales.
To view typical business types that apply for merchant cash advances, check out the industries we finance.
How are MCA Applications Evaluated?
Here’s the 4 phases of evaluation your MCA application goes through:
- Pre-Approval: Our automated software checks your application to confirm if you pre-qualify for an MCA.
- Underwriting: An underwriter then conducts a more thorough review of your application and supporting documentation.
- Funding Offer: If everything looks good, the underwriter will send you a funding offer.
- Acceptance: If you agree to the offer, you sign an MCA agreement and get your MCA.
How to Repay a Merchant Cash Advance?
When you pay back an MCA, the process is simple. The MCA provider takes daily or weekly deductions, known as a holdback, directly from your business bank account or merchant processing account. Your business’s credit card sales determine the speed of repayment; the higher the sales, the faster you pay off the MCA. These deductions continue until the full cash advance amount is repaid, typically within 3 to 18 months. To learn more about the repayment process, read how to repay an MCA.
Are Merchant Cash Advances Right for Your Business?
Merchant Cash Advances provide faster and easier access to capital than traditional lenders, but they carry higher rates and fees.
Before you decide on an MCA or any type of business loan, make sure it’s a financially sound choice for your business to avoid falling into a debt cycle.
If you’re not in a rush for funding, taking steps to improve your credit score, offering collateral, or finding a co-signer for your business loan can greatly improve the likelihood of securing terms more favorable than those MCAs usually offer.
To compare MCAs to other financing options read alternatives to an MCA.
Frequently Asked Questions
No, an MCA is not classified as traditional small-business loan. MCA providers do not lend you money. Instead, they are giving you a cash advance on your future credit card sales and charging a fee to provide that financial facility to you.
Yes. You can get an MCA with a low credit score. Many MCA providers require a FICO score of 550 or more. FICO Scores between 300-579 are considered ‘bad’ or ‘poor’. With bad credit, expect to pay higher rates to offset the MCA provider risk.
No. MCA providers do not report to credit bureaus, so your MCA or your repayment history will not appear and your credit report. To understand more about how credit reporting and credit checks operate in the context of MCAs, you can read MCA credit reporting.
If you default on an MCA, the MCA provider has the right to secure the remainder of debt. This can involve sending the debt to a collections agency and ultimately filing a lawsuit to recoup the debt. Read more about the consequences of defaulting on an MCA and how to avoid it.
A business cash advance is just another term used for a merchant cash advance. A business cash advance is also sometimes referred to as a revenue loan, a turnover loan, or revenue-based financing.
Yes, an MCA is a type of unsecured financing, so you don’t need to offer assets or collateral to secure the funding. However, some MCA providers may request a personal guarantee. This means if your business fails to repay the advance, you would be personally responsible for the debt.
No. Traditional banks and conventional lenders do not offer MCA financing.
The length of time it takes to repay a merchant cash advance in full depends on how much revenue is generated each day through credit and debit card purchases. The higher the amount each day, the faster the cash advance will be repaid. The average length of time it takes is between three to eighteen months.
Funds from an MCA are not taxed when received. However, you will need to pay taxes on the revenue you generate that is used to repay the MCA. This is because the MCA is an advance on your future revenue. The rates and fees may also have different tax implications. For a detailed breakdown, read MCA taxation guidelines.
Yes, it is possible to refinance an MCA. You can either approach your current MCA provider for refinancing options or consult a different lender and secure financial instruments, like a term loan, to settle the MCA balance. Read refinancing an MCA to know your options and the key steps to take.
Can startups get an MCA? Yes. Startups can qualify for MCAs provided they meet the minimum qualification. Read MCAs for startups to confirm if your startup qualifies.
Can Multiple MCAs be Consolidated? Yes. Your MCA provider may be willing to roll multiple MCAs into a single new cash advance. You also have to option to approach a lender that offers consolidation loans to pay off your existing MCA debts.
While MCAs become popular during the 2008-09 financial crisis when it was difficult to secure credit from traditional lenders, the origin of MCAs date back to the 1990s. Read the history of the MCA industry to learn more.
It depends. Some MCA providers incorporate clauses in their agreements requiring you to provide a personal guarantee, making you directly responsible should the business fail to repay. It’s essential to review your agreement carefully before committing. Read more about MCA personal guarantees to understand what they are and how they work in more detail.
If your business cannot qualify for a traditional business loan, MCA Financing might be a good alternative during a cash flow crisis. But you should use all types of high-interest-rate financing, including MCAs, as a last resort.
Ready to Apply?
No Hidden Costs or Fees
5 Minute Application
Bad Credit – Welcome
No Obligation to Accept
High Approval Rates