Fast working capital that flexes with your sales.
A merchant cash advance turns future credit card sales into capital you can use today. Repayment scales with your actual revenue — no fixed monthly payment to wrestle with during slow weeks.
What a merchant cash advance is — in plain English
A merchant cash advance (MCA) is technically not a loan. The lender buys a share of your future credit card sales at a discount. You receive a lump sum today and pay it back as a small percentage of every card transaction until the agreed total is repaid.
Because repayment is tied to a percentage of sales rather than a fixed payment, slow weeks cost you less than busy weeks. That makes MCAs popular with seasonal businesses, restaurants, salons, and retail shops whose revenue fluctuates.
Cost is calculated using a factor rate (e.g., 1.25) instead of an APR. If you take $50,000 at a 1.25 factor, you repay $62,500 total. The faster you repay, the cheaper the effective APR — but it's generally more expensive than a traditional loan, which is the trade-off for speed and flexibility.
How a merchant cash advance actually works
You apply with 3–6 months of business bank statements and recent card processing statements. The funder analyzes your average daily sales, then offers an advance amount with a factor rate and a holdback percentage (the share of daily sales that gets routed to repayment, typically 8–15%).
Once you accept, funds usually hit your business account within 1–2 business days. Repayment starts immediately and runs until the agreed total is repaid in full.
Many businesses use MCAs as bridge capital for short-term opportunities — inventory for a peak season, an equipment repair that can't wait, or a marketing push — rather than as ongoing financing.
What to weigh before you apply.
Pros
- Fastest funding option in our marketplace — often same week
- Approval is based on sales, not just personal credit
- Repayment scales with revenue: lighter on slow weeks
- No personal collateral required
Cons
- Higher cost of capital than traditional loans
- Daily or weekly debits can pinch tight cash flow
- Best for short-term needs, not long-term growth financing
- Stacking multiple MCAs is risky and usually a sign to step back
How it stacks up against other funding products.
Questions before you apply.
Is an MCA a loan?
Legally, no — it's a purchase of future receivables. That matters for state lending regulations but the practical effect is the same: you get money now and repay over time.
What credit score do I need?
MCA approvals lean heavily on consistent card sales, not personal credit. Scores below 600 can still qualify if monthly card volume is strong.
Can I pay off an MCA early?
You can, but it usually doesn't save you money — the total repayment is fixed by the factor rate. Always read your contract for any early-payoff incentives, which vary by funder.
How is this different from a bank loan?
A bank loan has a fixed monthly payment and an APR. An MCA has a daily or weekly holdback percentage and a factor rate. MCAs are typically faster and easier to qualify for but cost more.