Merchant Cash Advance

A merchant cash advance is a purchase of your future receivables, not a loan. A funding company provides a lump sum today and collects an agreed share of your future revenue until a fixed payback amount is reached. Because it is a purchase rather than a loan, no interest is charged and there is no fixed monthly payment.

Your advance amount is typically tied to your monthly revenue: businesses with stronger, more consistent sales generally qualify for larger amounts. This revenue-based structure suits restaurants, retailers, contractors, trucking companies, and other businesses whose income fluctuates month to month.

The process starts with a short application that takes just a few minutes, with no hard credit pull to apply. We review your recent bank statements to verify revenue and cash flow, and approval decisions are usually made within 24 hours.

If approved, you receive an offer stating four numbers clearly: the advance amount, the factor rate, the total payback, and the repayment schedule. Once you accept and sign, funds are deposited into your business account, often the same business day, and repayment begins automatically.

There are two common repayment models. With a split funding advance, a fixed percentage of daily card sales routes to the funder through your processor, so payments rise on busy days and fall on slow ones. With an ACH cash advance, a fixed amount is debited from your business bank account each business day or week, which suits businesses whose revenue does not flow through card terminals.

Both models repay automatically, with nothing to remember and no manual payments to schedule. Our split funding advance and ACH cash advance pages explain which model fits your revenue pattern.

A merchant cash advance does not charge interest. Your total payback is the advance amount multiplied by a factor rate. A $50,000 advance at a 1.25 factor rate means you repay $62,500 total, and that number is fixed from day one no matter how long repayment takes.

Our factor rates start at 1.20, with stronger revenue and healthy statements earning better rates. Your exact factor rate, advance amount, and total payback are disclosed in writing before you sign, so the cost is never a surprise. Our business funding page breaks down how factor rates compare across MCA types.

MCA underwriting focuses on revenue first and credit second. Most funded businesses share a simple profile: 1+ year in business, $50,000+ average monthly revenue, and an active business bank account with consistent deposits. Your credit is reviewed during underwriting, but a low score alone will not disqualify you when revenue is strong.

We fund a wide range of industries, from restaurants and retail shops to trucking companies, contractors, and professional services. Businesses with open bankruptcies or a recent default on another advance are generally not eligible.

An MCA is the right call when the capital will generate more than it costs: buying inventory at a discount, taking on a profitable job, covering a seasonal gap, or repairing equipment that keeps you earning. It also fits when speed matters, since bank financing can take weeks you do not have.

It is not the right call for long-term projects that pay back over years, because MCA terms are measured in months. And if you already carry two or more advances, adding another usually makes the cash-flow problem worse, not better. That situation is exactly what our MCA consolidation funding is designed to address.