8 Best Merchant Cash Advance Companies in 2020

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Overview of Merchant Cash Advance Companies

Merchant cash advance companies advance you a fixed amount of money and purchase a portion of your future credit and debit card receivables. Every time you make a credit or debit card sale, the company takes a small cut of the sale until you’ve fully paid back the advance.

Top Merchant Cash Advance Companies Summarized

Cash Advance Company Eligibility Requirements Advance Amounts Factor Rates Best For
Three months in business; 550 credit score; $5,000 monthly credit card sales
$5,000 to $500,000
Starting at 1.22
Startups, businesses with bad credit, fast funding
Six months in business; $150,000 annual revenue
$2,500 to $250,000
1.15 to 1.48 (plus $595 administrative fee)
Businesses with bad credit, startups, smaller advance amounts
One year in business; $3,000 monthly credit card transactions
Up to $250,000
1.17 to 1.36
Businesses with lower volume revenue, bad credit; quick funding
Six months in business; $10,000 monthly sales
Up to $250,000
Vary based on your qualifications
Fast funding, simple application, businesses with bad credit
One year in business; 580 credit score; $250,000 annual revenue
Up to $750,000
Starting at 1.12
Lower starting factor rates, higher advance amounts, fast funding
Six months in business; 550 credit score; $150,000 annual revenue
$7,500 to $1 million
Vary based on your qualifications
Larger advance amounts, simple application and access to funds quickly
Open to select Square sellers
$300 to $100,000
1.10 to 1.16
Businesses that use Square for payment processing
Open to select PayPal sellers with a PayPal Business or Premier account for at least three months
Up to 35% of annual PayPal sales (cap of $97,000 on first advance)
10% to 30% of your daily PayPal sales plus a flat fee determined by the daily percentage, loan amount, and sales history
Businesses that use PayPal for payment processing

In this guide, we’ll review each of these eight options on our merchant cash advance companies list, as well as answer frequently asked questions about how merchant cash advances work and how they compare to other types of small business loans.

Best Merchant Cash Advance Companies

If you’re searching for a merchant cash advance (MCA) for your business, you’ll want to compare different companies very carefully. Unfortunately, there are a variety of predatory merchant cash advance providers in the space, so you’ll want to be sure you fully vet your options before signing any MCA agreement.

This being said, to help you get started, we’ve compiled a list of the top merchant cash advance companies.

Let’s review these options:

1. Rapid Finance

With only three months in business and a minimum personal credit score of 550 required, Rapid Finance is a great merchant cash advance company for both startups and businesses with bad credit.

Rapid Finance offers merchant cash advances in amounts up to $500,000 with factor rates starting at 1.22. You can apply for an MCA from Rapid Finance quickly and easily online and receive funding as fast as 24 hours.

To apply, Rapid Finance only requires four documents:

  • Government-issued photo ID
  • Voided check from your business checking account
  • Last three statements from your business bank account
  • Last three credit card processing statements

Although Rapid Finance may be a little more expensive than some of their merchant cash advance company competitors, they’re fast, flexible (with the option for daily or weekly payments), and worth considering for those who can’t qualify for other loan products.

Plus, Rapid Finance also offers short-term loans, lines of credit, among other financing options, so you may also find that another solution from Rapid can meet your funding needs.

2. CAN Capital

Although CAN Capital offers lower advance amounts than Rapid Finance, they’re also a worthwhile option for startups with at least six months in business, as well as businesses with bad credit (as they have no minimum credit score requirement).

In addition to their short-term loans, CAN Capital offers merchant cash advances in amounts up to $250,000 with factor rates ranging from 1.15 to 1.48. It is important to note, however, that CAN Capital charges a $595 administrative fee on all MCA products.

This being said, CAN Capital requires daily repayments for their MCAs and they estimate most of their customers take six to 18 months to pay back the advance. As with most merchant cash advance companies, CAN Capital can provide funding very quickly, in as few as two business days.

You can apply for an MCA from CAN Capital with minimal paperwork online and receive funds as fast as the next business day after approval.

3. National Funding

Another merchant cash advance company to consider is National Funding. They offer advances up to $250,000 with automatic daily repayments. They’re one of the fastest merchant cash advance companies out there, with the ability to offer same-day approvals and get the money in your bank account in as few as 24 hours.

You can pre-qualify for National Funding if you’ve been in business at least one year and your monthly credit card transactions are over $3,000—making this MCA company a good option for businesses that might lower revenue volumes. To get started, you just need to fill out an online application and send in the last four months of credit card processing statements.

National Funding’s factor rates range between approximately 1.17 and 1.36, which puts them roughly on par with CAN Capital in terms of cost.

4. Reliant Funding

Next on our merchant cash advance companies list is Reliant Funding. Reliant offers MCAs in amounts up to $250,000 with factor rates that range based on your business’s qualifications.

Of all the MCA companies out there, Reliant Funding has one of the fastest and easiest online application processes, allowing you to submit your application in just minutes and receive an approval within hours.

To qualify for funding from Reliant, you need to have at least six months in business and $10,000 in monthly credit and debit card sales. With no minimum credit score requirement, however, Reliant is a worthwhile option for businesses with bad credit.

In addition, Reliant requires no personal collateral or assets, can provide funds the next day, and serves a variety of industries. Overall, Reliant is a top option for businesses that need financing fast.

5. Kalamata Capital Group

Although Kalamata Capital Group has higher qualification requirements compared to some of the other merchant capital advance companies on our list, their factor rates also start pretty low, at only 1.12. Therefore, if you can meet their requirements—at least one year in business, a credit score of 580, and $250,000 in annual revenue—you may be able to access a more affordable MCA compared to other options on the market.

This being said, Kalamata also offers MCAs in larger amounts, up to $750,000. To apply for a merchant cash advance from Kalamata Capital Group, you can contact one of their three U.S. locations.

According to their website, Kalamata can provide approval for financing in as little as three hours—making this merchant cash advance company another great option for fast funding.

6. Libertas Funding

Of all the merchant cash advance companies on our list, Libertas Funding offers the largest advance amounts—up to $1 million.

To qualify for an MCA from Libertas, you need to have at least six months in business, a minimum credit score of 550, and annual revenue of $150,000. You can apply for an MCA from Libertas quickly and easily online and receive a decision within 24 hours. Once you’ve agreed to your offer, you can receive funds in your bank account within 24 to 72 hours.

Libertas offers repayment on a daily or weekly basis and, according to their website, repayment terms typically range from three to 12 months.

In terms of fees, Libertas charges a 3% administrative processing fee, as well as factor fees which vary based on your business qualifications. Additionally, Libertas offers both prepayment and loyalty discounts.

On the whole, Libertas is another worthwhile option for quick access to funds—especially for businesses looking for MCAs in larger amounts.

7. Square Capital

If you’re a Square customer, a merchant cash advance through Square Capital could be one of the easiest ways for you to access financing.

With Square Capital, Square offers MCAs to businesses that use their platform for payment processing—and because Square works with select borrowers using their service, these merchant cash advances are more affordable than other options.

Square provides between $300 and $100,000 in capital to Square Sellers. There aren’t any strict eligibility requirements, but Square looks at your processing volume and account history—if you show a steady history of credit and debit card sales, you could qualify for an advance.

Square charges factor rates of about 1.1 to 1.16, which (as we mentioned) puts them on the more affordable end of merchant cash advances.

This being said, the entire advance must be repaid in full within 18 months of approval. If you accept payments through Square, then you should definitely check in your Square dashboard to see if you qualify.

8. PayPal Working Capital

Similar to Square, PayPal is another payment processing company that also provides merchant cash advances. Their merchant cash advance product is called PayPal Working Capital. PayPal can extend you an advance in an amount that’s equal to 35% of your annual PayPal sales, with a cap of $97,000 for your first advance.

To qualify for PayPal Working Capital, you must have a PayPal Business or Premier account for at least three months. In addition, you must be processing at least $20,000 in annual PayPal sales (or be projected to do so) if you have a Premier account or at least $15,000 (or be projected to do so) in annual PayPal sales if you have a Business PayPal account.

In terms of MCA fees, you’ll pay 10% to 30% of your daily PayPal sales plus a flat fee determined by the daily percentage, loan amount, and PayPal sales history with this product.

Although PayPal offers some flexibility in the repayment percentage that you want to be deducted from your daily credit and debit card sales, you are required to meet a minimum repayment requirement every 90 days.

With this in mind, however, if you’re a PayPal customer looking for a simple and affordable way to access financing, turning to PayPal Working Capital might be a viable option for you.

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Frequently Asked Questions

The Bottom Line

At the end of the day, if you find yourself needing quick cash for your business, you might be tempted to work with merchant cash advance companies. After all, they can give you capital within just a few days, and repayment is flexible, going up or down based on your sales revenues.

Keep cost in mind, though—MCAs can really impede your cash flow and harm your business’s long-term financial health. Therefore, you’ll always want to determine if there’s a more affordable option before opting for a merchant cash advance.

On the other hand, if you think an MCA is the only option available, you’ll want to ensure that you work with a reputable provider—like the ones we’ve discussed here—as well as thoroughly review all of the terms, conditions, and fees before signing any merchant cash advance agreement for your business.

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Senior Contributing Writer at Fundera

Priyanka Prakash, JD

Priyanka Prakash is a senior contributing writer at Fundera.

Priyanka specializes in small business finance, credit, law, and insurance, helping businesses owners navigate complicated concepts and decisions. Since earning her law degree from the University of Washington, Priyanka has spent half a decade writing on small business financial and legal concerns. Prior to joining Fundera, Priyanka was managing editor at a small business resource site and in-house counsel at a Y Combinator tech startup.

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