An MCA is generally structured as a purchase of a portion of future receivables rather than a traditional loan. The legal structure and obligations depend on the provider agreement.

How does repayment work?

The provider may deduct a percentage from daily card batches or make fixed daily or weekly ACH withdrawals until the agreed payback is delivered.

What if my sales drop?

If repayment is tied to a percentage of card sales, the payment amount may drop when sales drop. Fixed ACH terms may not change, so review the agreement.

Will an MCA affect my credit score?

Credit reporting varies by provider and agreement. Do not assume an MCA will or will not affect personal or business credit; ask the provider before accepting.

What is the cost of an MCA?

MCAs commonly use factor rates rather than APRs. A 1.3 factor on a $10,000 advance represents $13,000 total payback before any other agreement terms.

Some providers offer renewals after an advance is paid down, but renewal availability, amount, and terms are not guaranteed.

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Merchant Cash Advance

An advance based on your future credit card sales. Repayment adjusts with your revenue, making it perfect for businesses with fluctuating sales.

Maximum shown$500K

Repayment Style% of daily sales or ACH; agreement dependent

Factor Rate1.15 - 1.50 shown; provider quote varies

Overview

A Merchant Cash Advance (MCA) is not technically a loan, but an advance based upon the future revenues or credit card sales of a business. A small business sells a portion of its future sales at a discount to an MCA provider in exchange for a lump sum of cash.

Repayment is made through a percentage of your daily credit card receipts or via daily ACH debits, meaning you pay more when sales are strong and less when sales are slow.

Key Features

Revenue Based

Approval and advance amount are based on your sales history.

Flexible Payments

Payments fluctuate with your daily sales volume.

Lightning Fast

Some providers approve or fund within 24 to 48 hours; timing varies and is not guaranteed.

Collateral May Vary

Specific asset collateral may not be required, but providers may require guarantees, liens, or other security.

Credit Flexible

Some providers weigh business cash flow more heavily than personal credit; standards vary.

Automated Repayment

Repayment may be deducted automatically under the provider agreement.

Common Use Cases

Restaurants

Handle seasonal slumps or unexpected equipment failures.

Retail Stores

Purchase inventory quickly for a sudden trend or holiday.

Medical Practices

Bridge the gap while waiting for insurance payouts.

Quick Expansion

Seize an immediate opportunity to expand or run a marketing campaign.

Frequently Asked Questions

Loan Details

Advance Amount$5,000 - $500,000 (provider dependent)
Repayment Style% of daily sales or ACH; agreement dependent
Factor Rate1.15 - 1.50 shown; provider quote varies
Time to FundSome providers quote 24 - 72 hours; varies

Common lender guidelines

These are common provider screening guidelines, not guaranteed minimums. Eligibility, credit standards, documentation, collateral, and final terms vary by provider.

6+ months in business is a common provider guideline
500+ personal credit is a common provider benchmark, not a universal requirement
$10,000+ monthly revenue is a common provider guideline; thresholds vary
Consistent credit-card or ACH volume is commonly reviewed

How to Apply

1
Submit 5-min form
2
Review matches
3
Provide documents
4
Receive funds

Timing expectations

After a completed application, quotes are typically provided within 24–72 hours. After acceptance, funding may be same day or within 24 hours, subject to provider approval, required documents, and bank processing.

SBA loans may take up to 60 days. All timelines are estimates and vary by product, provider, application, and banking process.

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Business Term Loans

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Working Capital

Fast, accessible capital to cover everyday business expenses. Short-term financing designed to keep your operations running smoothly.

SBA 7(a) Loan

The gold standard for small business funding. Long terms, low rates, and government backing make this ideal for major investments.

More resources

Merchant cash advances guide Restaurants & hospitality funding Retail & e-commerce funding

Ready to grow your business?

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