What Is a Merchant Cash Advance?
A merchant cash advance is not technically a loan. With an MCA, a financing company advances you cash in exchange for a percentage of your daily credit card and debit card sales, plus a fee. Merchant cash advances can be quick, easy ways to get a business cash advance with no need for collateral—even if you don’t have a great credit score.
Merchant Cash Advance Details
|Max. Advance Amount||Repayment||Factor Fee||Speed|
|$2.5K - $250K||Paid daily via your merchant account||1.14 - 1.18||As little as 2 days|
- Quick access to funds
- Easy approval process
- Bad credit is accepted
- Higher fees
- Daily deduction of credit card receipts reduces cash flow
Top Merchant Cash Advance Companies
Best for: Fast access to funding with the possibility of prepayment incentives.
Best for: Fast funding with no collateral requirement.
Who Qualifies for Merchant Cash Advances?
Would your business be eligible for a merchant cash advance?
If you have little or no collateral, limited business history, or a low credit rating, merchant cash advances could be a solution to your financing problems.
Merchant cash advance providers tend to have easy eligibility standards, so most small businesses shouldn’t have a problem qualifying.
Plus for businesses that make a big portion of their revenue through credit card payments—if you own a restaurant or a retail store, for example—then you can use a merchant cash advance as a short-term financing tool. It can help with working capital, inventory purchases, debt payments, unexpected payments, and more.