Merchant Cash Advances

Get an upfront lump sum of capital to keep your business moving forward. Repay it automatically with a percentage of your daily credit card sales.

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

business owner holding credit card processing machine

Apply Online

Fill out a short online application. You don’t need to provide any paperwork or collateral.

Same Day Funding

Same day MCA funding is available, with an average funding time of 1 to 3 days.

Bad Credit Accepted

We accept bad credit applications for credit scores as low as FICO 550.

No Credit Check

We conduct soft credit inquiries to ensure that your credit score will not be affected.

MCashAdvance is a business cash advance company. We offer merchant cash advances (sometimes called MCA loans or MCA funding) to businesses, like yours.

We offer lump sum advance amounts between $5,000 and $900,000. Approval is based on the strength of your daily credit card sales.

There are no ongoing interest rate payments. Just a simple flat fee called a factor rate, which ranges from 1.1 to 1.5.

You repay your business cash advance with a fixed percentage (10% to 25%). It’s called the holdback. The holdback is taken from your credit card receipts each day.

You repay your business cash advance with a fixed percentage (10% to 25%). It’s called the holdback. The holdback is taken from your credit card receipts each day. Business cash advances are structured to be repaid typically within 3-18 months.

MCA Feature Offer 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

How To Get a Business Cash Advance?

To get a merchant cash advance from MCashAdvance complete these 4 easy steps:

Diagram of an MCA application form in a web browser

1. Complete the Online Application

Enter basic financial and business information to see if you pre-qualify for an MCA.

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

2. Submit Your Documentation

Upload and submit your business’s bank account statements for the previous 3 months for review.

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

3. Get a Funding Offer

An underwriter will review your application. If everything checks out, they’ll send you a funding offer.

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

4. Receive Your MCA Funding

Accept the funding offer. Sign the contract. The funds will be deposited into your bank account.


To get more guidance on applying to MCA providers, read how to apply for an MCA.

Business Cash Advance Requirements

To qualify for a merchant cash advance from MCashAdvance, you must meet these 5 requirements:

Diagram of multiple documents with lines and checkboxes representing qualification requirements for an MCA
  1. 6+ months in business
  2. $7,500+ a month in credit card sales
  3. 550 minimum credit score (FICO)
  4. Have an active business bank account
  5. US citizen or resident over 18 years of age

To find out the most common requirements that MCA providers ask for, read qualification requirements for an MCA.

We’ve Helped Thousands of Businesses

We fund small businesses in all 50 states in the USA. We give them fast access to the working capital they need to keep succeeding.

$50,000 MCA loan for a restaurant in New York for equipment upgrade.
$15,000 merchant loan for a construction company in Texas for working capital.
$100,000 merchant financing for a medical clinic in Illinois for expansion.
$25,000 small business cash advance for a retail store in Pennsylvania for inventory purchase.
$75,000 MCA funding for a technology startup in New Jersey for marketing campaign.
$10,000 merchant loan for a beauty salon in Georgia for renovations.
$200,000 merchant capital funding for a manufacturing company in Ohio for equipment purchase.
$35,000 MCA financing for an auto repair shop in Michigan for emergency repairs.
A $150,000 cash advance business loan for a fitness center in North Carolina for expansion.
$12,000 merchant account loan for a bakery in Virginia for inventory restock.
$80,000 merchant business funding for a digital marketing agency in Arizona for hiring new staff.
$30,000 short-term financing for a pet grooming service in Massachusetts for equipment upgrade.
$175,000 capital for a real estate agency in Washington for business expansion.
$8,000 of business capital for a coffee shop in Maryland for renovations.
$60,000 short term funding for a printing company in Colorado for new machinery.
$45,000 business credit card advance for a furniture store in Minnesota for inventory purchase.
Diverse group of people in store, including man and woman. Benefiting various industries we have assisted

Who Should Apply for a Business Cash Advance?

Business owner stands beside truck purchase by an MCA
business owner of a cleaning company with new hires funded by an MCA cleaning an office

MCAs are good for businesses that need funding but don’t qualify for traditional loans. Businesses that process many credit card transactions every day should apply for a merchant cash advance. This is because approval is based on the strength of your monthly credit card sales. Even if your business is new, has bad credit, lacks collateral, or has cash flow problems, you can still apply for an MCA.

Merchant Cash Advances Explained

What is an MCA?

A merchant cash advance (MCA) is an alternative type of financing for businesses that need fast access to working capital. It’s not like a traditional business loan; the lender does not loan money to you, and there is no interest charged. Instead, a merchant cash advance provider gives you an upfront lump sum of cash. You agree to pay back the lump sum plus a fixed fee from future sales revenue from credit card sales.

How Does an MCA Work?

You and the MCA provider 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 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. This usually 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
Diagrams of circles with icons that represent common uses of an MCA inside each circle, connected to a credit card reader

What Can You Use MCA Funding For?

There are no restrictions on what you can use the MCA funding 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 an MCA Cost?


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

To calculate the true cost of an MCA, 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.

MCA 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 (MCA).

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%

Pros And Cons Of MCAs

Before you consider any type of alternative financing, including an MCA, it’s essential to weigh both the advantages and disadvantages:

Pros

  • Simple application process
  • Quick decisions
  • Lower eligibility requirements
  • No collateral required
  • Fast funding
  • No restrictions on funds usage

For more Pros, read 20 benefits of an MCA.

Cons

  • More expensive than loans
  • Daily repayments may hurt future 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.

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 MCA Offers Sometimes Lower Than the Amount Requested?

When you request a specific advance amount from an MCA provider, the amount offered might be lower due to your business’s risk profile, your monthly credit card sales, and your repayment capacity. Providers typically offer 50% to 250% of your credit sales, adjusting for potential risks and their own policies to ensure you can pay back the advance comfortably.

How are MCA Applications Evaluated?


First, our fintech software checks if you pre-qualify for an MCA. 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 verify your business’s cash flow and look for any red flags like too many NSFs, negative balance overdrafts, or other debt obligations. After that, they complete a soft inquiry to look at your personal and business credit scores, so your credit won’t be affected. They will use this information to decide to offer you funding and determine how much they will charge (factor rate fee) to provide you with the advance based on this business’s risk profile.

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 an MCA?

Repaying your MCA is a straightforward process. The MCA provider simply needs your consent, which is included in your MCA agreement, to carry out the deductions. They handle everything related to deductions, from start to finish.

Most MCA providers use Split Withholding Repayments, where they deduct money from your daily credit card transactions. Some may prefer ACH Withdrawal Repayments, which deduct fixed amounts from your bank account regularly. Others may ask you to process card transactions through a separate bank account, transferring your share of sales to your bank account at the end of each day, known as Lock Box 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 Difference Between MCAs and Loans

Loan Features Comparison Merchant Cash Advances Bank Loans SBA Loans
Funding Amounts $5,000-$900,000 $100,000 Credit dependent.
Application Process 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.
Approval Time Less than 2 hours. Takes weeks. Takes weeks.
Time to Funding Same-day funding, 1-3 day average. 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%)

Now that the table above has highlighted the key differences between MCAs and regular business loans, you might be also wondering how other types of business financing, like business lines of creditinvoice factoring, and equipment financing, stack up against MCAs. To learn more, check out a guide on 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?

Merchant cash advances provide faster and easier access to capital than traditional lenders, but they carry higher rates and fees.

Before you commit to an MCA or any type of alternative financing that offers bad credit business loans, 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.

Frequently Asked Questions

Is an MCA a loan?

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.

Can I get a merchant financing with bad credit?

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.

Will an MCA affect my credit score?

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.

What happens if you default on MCA?

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.

What is a business cash advance?

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.

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.

Do banks offer MCA Financing?

No. Traditional banks and conventional lenders do not offer MCA financing.

How long does an MCA last?

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.

How are MCAs taxed?

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 I 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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