Merchant Cash Advances (MCA’s)

Merchant cash advances (MCA’s) are best for businesses that need fast access to capital to help cover short-term expenses or seasonal dips in revenue.

Applying is free and won’t affect your personal credit score.

business owner holding credit card processing machine with a notification that he has been approved for a merchant cash advance
Apply online today

Complete our online application in less than 5 minutes and enjoy fast processing, no paperwork, and quick approval of your MCA.

Same day funding

Get funded the same day you apply for your MCA. Receive your cash in as little as 24 hours. Our average funding time is 1-3 days.

Bad credit accepted

Bad credit does not prevent you from getting an MCA because the approval process focuses on the strength of your credit card sales.

No credit check

No credit check is conducted when you apply for an MCA. Only a soft credit pull is carried instead of a hard one to ensure your credit won’t be affected.

Merchant cash advance details

We are a merchant cash advance company that fuels businesses with merchant cash advances (MCA’s) up to $900k in as little as 24 hours. Approval is based on the strength of your business’s credit card sales.

There are no interest rate payments. Instead, you pay a flat fee called a factor rate, which ranges from 1.1 to 1.5. You repay the advance amount, plus the flat fee, from a percentage of your credit card receipts. This fixed percentage, known as the holdback percentage, ranges from 10% to 25%.

Repayment periods can last anywhere from three to eighteen months. When credit and debit card sales are high, you pay back the advance faster. If sales are on the lower side, paying back the advance will take a bit longer.

MCA Feature MCA Details
MCA Amounts: $5,000 – $900,000
Factor Rate: 1.1 – 1.5
Holdback 10 – 25%
Repay In: 3 – 18 months
Funding Time: 1 – 3 days
group of small business owners

Who should apply for a merchant cash advance?

Small business owners who need short-term financing and have consistent credit card sales should apply for a merchant cash advance. This alternative type of business financing is ideal for businesses that may not qualify for a short-term loan or a traditional bank loan but have steady revenue through credit card payments. Approval is based on the strength of your business’s credit card sales. So even if your business has no business credit history, no physical collateral, or less-than-perfect credit, you still have a very high chance of getting approved.

How to get a merchant cash advance

Apply entirely online to get a merchant cash advance from MCashAdvance by following these simple steps:

Diagram of an MCA application form in a web browser

Step 1. Apply

Fill out our online application form. You only need to provide basic information about your business and its finances.

Diagram of 3 papers that represents 3 months bank statements you need for the MCA application process

Step 2. Submit Documentation

Submit the last 3 months of your business bank statements. Or, your credit card processing statements.

Diagram of two hands shaking in front of a funding offer agreement for an MCA

Step 3. Let Us Review

Our underwriters will review your MCA application. If everything checks out, they’ll send you an offer.

Diagram of money and coins with the USD symbol to represent the funds you receive with your cash advance

Step 4. Receive Your MCA

Accept the offer, sign the contract and the up-front lump sum payment will be deposited into your bank account.

To learn about the application process with different merchant cash advance providers, read how to apply for an MCA.

Merchant cash advance minimum requirements

To qualify for a merchant cash advance from MCashAdvance, there are a few key criteria that you need to meet.

Credit Requirements for an MCA

Your FICO personal credit score or business credit score needs to be a minimum 550 or higher.

Financial Requirements for an MCA

Your business needs to have been operation for a minimum of 6 months. It must process credit card transactions of at least $7,500 per month. It must also have a valid business bank account number.

Documentation Needed for an MCA

You must submit three months of business bank statements. Or, you can submit three months of credit card processing statements.

Personal Requirements for an MCA

You may need to provide proof of personal identification. The ID must confirm that you are over 18 years old and either a US citizen or resident.

Diagram of multiple documents with lines and checkboxes representing qualification requirements for an MCA

To find out what other merchant cash advance companies may ask for, read qualification requirements for an MCA.

Recent businesses that received merchant cash advances

$50,000 MCA loan for a restaurant in New York for equipment upgrades.
$85,000 in a merchant cash advance for a construction company in Texas for working capital.
$25,000 business cash advance for a retail store in Pennsylvania for inventory purchases.
$75,000 in MCA funding for a technology startup in New Jersey for a marketing campaign.
$35,000 in MCA financing for an auto repair shop in Michigan for emergency repairs.
$30,000 in short-term financing for a pet grooming service in Massachusetts for equipment upgrades.
$150,000 cash advance business loan for a fitness center in North Carolina for expansion.
$175,000 in working capital for a real estate agency in Washington for business expansion.
$10,000 MCA loan for a beauty salon in Georgia for renovations.
group of small business owners

What are MCA loans?

MCA loans describe merchant cash advances, which provide businesses with upfront cash in exchange for a portion of future credit card sales.

An MCA should not be considered a traditional business loan. The merchant cash advance company is not loaning you money. They don’t charge interest or ask for collateral like a business loan. You won’t pay back a fixed amount plus interest over time like a traditional loan.

Instead, you are being offered an upfront payment and are selling a portion of your future credit and debit sales to pay back the advanced amount.

Repayments fluctuate based on your daily credit card sales. When credit and debit card sales are high, you pay back more of the advance on that day. If sales are on the lower side, you repay less of the advance on that day.

How does a merchant cash advance work?

You and the merchant cash advance company agree on how much cash you’ll receive (the advance amount). The MCA provider will offer a fee, called the factor rate. This rate is the fee they want to charge you for the merchant cash advance. They will also say how much of your daily credit card sales they will take each day, called the holdback. You’ll find all these details written down in the MCA agreement.

After you sign the agreement, the MCA provider will deposit the money into your business bank account in as little as 24 hours. Average funding time takes 1-3 days. You can start using this money right away for anything you need in your business. You don’t have to tell the MCA provider what you’re spending the money on.

The MCA provider then sets up automatic deductions to take a portion of your daily credit card sales. This could start as soon as the day after the money shows up in your bank account. These automatic deductions continue every day. They continue until you’ve paid back the entire advance plus the fee.

Diagram of a credit card reader connecting to a lender and a business with two circles, one with 10% and one with 90%, representing how MCAs work

Merchant cash advance pros and cons

Before you consider any alternative financing, like a merchant cash advance, you must weigh its pros and cons:


  • Simple online application process
  • Bad credit accepted
  • No credit checks
  • Lower eligibility requirements
  • No psychical collateral required
  • Same day funding available
  • No restrictions on funds usage

For more Pros, read 20 benefits of an MCA.


  • More expensive than loans
  • Very high APR rates
  • Daily repayments may hurt future cash flow 
  • Shorter repayment periods
  • Won’t improve credit score
  • Cash-only businesses are not eligible
  • No early repayment benefit

For more Cons, read 10 drawbacks of an MCA.

Diagrams of circles with icons that represent common uses of an MCA inside each circle, connected to a credit card reader

What is a merchant cash advance used for?

There are no restrictions on what you can use an MCA for in your business. Most business owners use the MCA they receive to help with short-term expenses and purchases.

The 5 most common uses are:

  1. Supporting cash flow
  2. Working capital
  3. Cover unforeseen expenses
  4. Purchase Inventory
  5. Equipment Purchases

For a more detailed list of what you can use MCAs for in business, read uses of MCAs

How much will a merchant cash advance cost?

The total borrowing cost of your merchant cash advance will be the advance amount given, plus the factor rate fee the MCA provider charges you.

To calculate the true cost of a merchant cash advance, multiply the advance amount by the factor rate. For example, if you receive a $20,000 MCA with a factor rate of 1.2, you will owe $24,000 ($20,000 x 1.2).

Most MCA providers and lenders charge a flat factor rate fee. But, some brokers and lenders may add extra fees, like origination, processing, and early repayment fees. So, it’s important to confirm with your provider that there are no hidden charges before finalizing any agreement. At MCashAdvance, we do not charge any hidden fees.

Merchant cash advance example

Imagine your business makes $25,000 each month from credit and debit card sales. You need quick cash for some expenses, so you apply for a $20,000 merchant cash advance.

The MCA provider evaluates your credit card sales and business’s credit risk. They offer the $20,000 at a 1.2 factor rate with a 15% holdback each day.

This means the $20,000 MCA will cost you ($20,000 x 1.2) = $24,000 in total. From your average monthly credit card sales of $25,000, the provider will hold back 15% each day ($25,000 x 0.15 / 30) = $125 per day.

At an average of $125 a day, it’ll take around 192 days, or 6.4 months, to repay the $24,000.

Repayment time varies with your daily sales. More sales mean quicker repayment: fewer sales mean slower. The 15% deduction remains constant.

Use this MCA calculator to get an idea of what an MCA might cost you, based on what you’re looking for.

DetailsMCA Example
Advance Amount$20,000
Factor Rate1.2
Holdback$125 per day (15% of daily credit card sales)
Estimated Repayment Period6.4 months
Total Pay Back$24,000
Estimated APR71.17%
Diagram of 3 circles connected to a credit card reader, each representing a different business type that might use an MCA: salons, restaurants, and retail stores

Why are funding offers sometimes lower than the amount requested?

The amount of cash the MCA provider offers you may be lower then the amount you request. This is because the MCA provider may feel giving you the full amount is too risky. They decide how much to offer based on the strength of your credit card sales, your credit history and business history. Providers usually offer 50% to 250% of your credit sales.

How are merchant cash advances evaluated?

First, our fintech software checks if you pre-qualify for a merchant cash advance. Then, one of the underwriters at MCashAdvance reviews your application and supporting documents. The underwriter starts by checking the strength of your monthly credit card sales.

Next, they review your bank statements to check your business’s cash flow. They look for red flags like too many NSFs, negative overdrafts, or other debts. After that, they do a soft inquiry to view your personal and business credit scores. This won’t affect your credit.

They will use this information to decide to offer you funding. They will also use it to determine how much they will charge (factor rate fee) to provide you with the advance.

For a more detailed breakdown of the evaluation process read MCA underwriting

Diagram of 4 circles connected vertically, representing the evaluation process of MCAs from pre-approval to funding offer and contract

How to repay a merchant cash advance?

Repaying a merchant cash advance is a straightforward process. The MCA provider included a clause in your MCA contract. It allows them to carry out automatic deductions. They handle everything related to repayment deductions, from start to finish.

Most MCA providers use Split Withholding Repayments. They deduct money from your daily credit card transactions. Some may prefer ACH Withdrawal Repayments. They deduct fixed amounts from your bank account weekly or monthly.

Others might ask you to process all your card transactions through a separate bank account. They then transfer your share of the sales from that bank account into your bank account at the end of each day. They keep the percentage owed to repay the MCA. This method is called Lockbox or Bank Account Withholding Repayments.

To learn more about the repayment process, read how to repay an MCA.

Diagram of 3 icons inside 3 circles with directional arrows showing how to repay an MCA: from the credit card to the card reader to the lender

The differences between merchant cash advances and business loans

Loan Features Comparison Merchant Cash Advances Bank Loans SBA Loans
Funding Amounts $5,000-$900,000 $100,000 Credit dependent.
Application Process Short online application process with same day approval and no paperwork. Long application process with lots of paperwork. Long application process with lots of paperwork like business plans.
Bad Credit Accepted Yes No No
Hard Credit Check No Yes Yes
Approval Time In as little as 24 hours. Takes weeks. Takes weeks.
Time to Funding Same day funding. 1-3 Months. 1-3 Months.
Approval Criteria Credit Card Sales. Credit score and collateral. Credit score and collateral.
Borrowing Costs High (15% to 50%) Low (6% to 12% ) Low (11% to 15%)

The table shows the differences between merchant cash advances and traditional business loans. To learn the key differences between MCAS and other business financing options, like business lines of credit, invoice financingequipment financing read the top 10 alternatives to merchant cash advances.

Diagram of circles connected to a card reader and a bag of money, with icons inside representing considerations before getting an MCA.

Is MCA funding right for your business?

MCA funding is a good funding option for businesses with strong credit card sales that may not meet the strict loan criteria to qualify for a loan. But its high rates and fees make it a very expensive alternative type of business funding.

Before you commit to MCA funding or any alternative financing that offers bad credit business loans, make sure it’s a financially sound choice for your business so you don’t end up falling into a cycle of debt.

Frequently asked questions

Does MCashAdvance offer same day funding?

Get funded the same day you apply for your MCA. Receive your cash in as little as 24 hours. Our average funding time is 1-3 days. To speed up the approval process and funding time, have your last 3 months’ business bank statements ready after applying. Also, ensure you’re available for a call at the provided number if needed.

Can you get an MCA if you have bad credit?

Bad credit does not prevent you from getting an MCA because the approval process focuses on the strength of your credit card sales. But because you have bad credit, you can expect to pay much higher rates. As long as you have strong credit card sales and your bad credit is FICO 550 or above you get an MCA from MCashAdvance.

Can a merchant cash advance hurt your credit?

A merchant cash advance is not considered to be a loan, so it is not reported to the credit bureaus, so your credit won’t get hurt. But, if you can’t pay it back, the MCA provider might involve a collections agency or sue for the amount owed. If a court or collections judgment goes against you, this gets recorded on your credit report and will hurt your credit. Read MCA credit reporting to learn more.

Will MCashAdvance run a credit check when you apply?

No credit check is conducted when you apply for an MCA. Only a soft credit pull is carried out to ensure your credit won’t be affected.

What happens if you default on an MCA?

If you default on the MCA, the funder can send the debt to a collections agency or file a lawsuit to seize your business assets to recoup their losses. Even if you miss one payment, that is usually considered a breach of contract and you are considered to be in default of your MCA agreement. Read more about the consequences of defaulting on an MCA and how to avoid them.

Are MCAs unsecured?

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.

Is an MCA tax-deductible?

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.

Can you refinance an MCA?

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?

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?

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.

When were MCAs invented?

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.

Are MCAs personally guaranteed?

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.

Is MCA Financing Bad?

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.

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