Find the Lowest Rates on Merchant Cash Advances


Merchant Cash Advance at a Glance

Merchant cash advance is a quick, easy way to get a business cash advance with no need for collateral—even if you don’t have a great credit score.

Merchant Cash Advance amount icon

Maximum Advance Amount

$2,500 - $250,000

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Automatically deducted each day through your merchant account

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Factor Fee

1.14 - 1.18

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Time to Funding

1 week

The Pros and Cons

  • Quick access to funds
  • Easy approval process
  • Bad credit is accepted
  • Suitable for a wide range of business purposes
  • Higher fees than with traditional loans
  • Less flexibility to change merchant service providers
  • Daily deduction of credit card receipts reduces cash flow

Apply to the Industry’s Best
“Merchant Cash Advance” with Fundera Today!

Find Out If You Qualify

Compared to Other Loan Types...

Loan Type
Time to Funding
Avg. Interest Rates
Time to Funding
1 week
Avg. Interest Rates
1.14 - 1.18
Time to Funding
As little as 3 weeks
Avg. Interest Rates
Starting at 6.5%
Time to Funding
As little as 2 days
Avg. Interest Rates
7 - 30%
Time to Funding
As little as 2 days
Avg. Interest Rates
8 - 30%
Time to Funding
As little as 1 day
Avg. Interest Rates
7 to 25%
Time to Funding
As little as 1 day
Avg. Interest Rates
Approx. 3% + %/wk outstanding
Time to Funding
As little as 1 day
Avg. Interest Rates
Starting at 10%
Time to Funding
As little as 2 weeks
Avg. Interest Rates
7.9 - 19.9%
Time to Funding
As little as 1 day
Avg. Interest Rates
5.99 - 36% APR

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.


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.

Most Customers Who Were Approved Had...

Merchant Cash Advance Annual Revenue icon

Annual Revenue

Over $180,000
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Credit Score

Merchant Cash Advance Time in Business icon

Time in Business

Over 2 years

**Based on past Fundera customers.

What Documents Will I Need to Apply?

Driver's License
Voided Business Check
Bank Statements
Credit Score
Business Tax Returns
Credit Card Processing Statements
Instead of a loan with set daily payments, a merchant cash advance fluctuates with your business's daily sales, so you pay more when business is good and less when it's slow.
Abbey Young
Account Manager
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How Does a Merchant Cash Advance Work?

Every business could use some extra capital…

But applying for loans takes time and energy that you might not have.

Plus, even after you send out an application, there’s a chance you don’t even qualify.

At Fundera, we pride ourselves on having a marketplace that can help out all different sorts of business owners. If you don’t have the time to wait for a typical loan or wouldn’t qualify, a merchant cash advance might be for you.

What Exactly Is a Merchant Cash Advance?

How would you like a cash advance—approved and funded in just a day or two—with almost no paperwork involved?

That’s what a merchant cash advance is, with one caveat:

In return for that lump sum advance, you agree to pay the lender back with a percentage of your daily credit card sales.

While a merchant cash advance is definitely one of the faster financing options out there, it is the most expensive loan on the market.

Proceed with caution.

What Exactly is a Business Cash Advance?

Many people use the terms merchant cash advance and business cash advance interchangeably. However, you may encounter small business lenders who offer business cash advance products that don't operate like traditional MCAs.

Swift Capital, for example, will buy a certain percent of your future sales just like a MCA. But instead of paying back with a set percent of your daily credit card sales, you will pay them back with a set percent of your total sales. The payments are made with ACH withdrawal. Like an MCA, you pay more when business is good and less when business is slow. As your payments fluctuate based on your sales, there is no set term.

If you are considering a merchant cash advance, we recommend comparing a true business cash advance product alongside any offers you get.

Merchant Cash Advances & Factor Rates

Merchant cash advance providers measure their fees with a factor rate instead of an interest rate.

Ranging from 1.14 to 1.48 typically, a factor rate is what you multiply your loan amount by to figure out the total you’ll owe.

Converted to APR, these rates often start at 15% but can get all the way up to triple digits.

How Long Will It Take To Pay Off a Merchant Cash Advance?

The average repayment time frame for a merchant cash advance is 8 or 9 months.

But the term can be as short as 4 months and as long as 18, depending on your business.

And the higher the fixed percentage of your credit card sales you’re paying the lender with, the shorter your repayment time—and the tighter your cash flow.

Deciding If a Merchant Cash Advance Is Worth It

How do you know whether a merchant cash advance will make sense?

On the one hand, paying off a loan with daily credit card sales can bite into your cash flow more than you might expect.

On the other, you’ll actually repay a lower amount of money during slower weeks and months—unlike with a term loan, where you’ll either make your payments on time or suffer the late fees.

In the end?

It’s up to you to understand your business’s financials.

Just remember that a merchant cash advance is the most expensive financing option you could pick.

Apply to the Industry’s Best
“Merchant Cash Advance” with Fundera Today!

Find Out If You Qualify

What Will a Merchant Cash Advance Cost You?

Let’s look at how you can calculate the actual cost of a merchant cash advance.

Say you’re advanced $20,000 with a factor rate of 1.18.

$20,000 multiplied by 1.18 is $23,600, which is what you’ll need repay with your daily credit card transactions.

At first glance, that might seem like you’re just paying a 18% interest rate—but looks can be deceiving.

Translating Factor Rate Into APR

You have to determine the true cost of the merchant cash advance by its APR.

If your lender will be taking 15% of your future credit card sales and you’re estimating $25,000 a month in credit card transactions, you’d repay that advance in 189 days with daily payments of $125.

That’s an APR of 65.96%—quite a bit higher than it originally looked.

Merchant cash advances, while fast and convenient, tend to be worth their price only if you’re confident you can repay them quickly and without much harm done to your cash flow.

Just be sure to shop around and see if you can qualify for other types of loans before moving forward with a merchant cash advance.

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