Product overview

What's a Merchant Cash Advance?

Capital you repay as a percentage of your sales, not as a fixed monthly payment. Built for small businesses that need cash fast and don't want their cash flow tied to a rigid schedule.

How an MCA works

Bank loan vs. Merchant Cash Advance.

You receive a lump sum upfront. In exchange, you agree to remit a set percentage of daily or weekly revenue until a fixed total — principal plus factor cost — is paid back.

Traditional

Bank loan

  • Fixed monthly payment regardless of revenue
  • Underwriting can take weeks or months
  • Often requires collateral or strong credit
  • Lower stated cost (APR) for qualifying borrowers
  • Strict eligibility — minimum time in business, credit, revenue

Revenue-based

Merchant Cash Advance

  • Repayment as a percentage of daily / weekly revenue
  • Decisions sometimes within hours, funding same / next day
  • Unsecured — underwritten on cash flow, not collateral
  • Higher cost than bank debt — the trade is speed and access
  • Flexible eligibility — younger businesses, sub-680 FICO often welcome

When MCA makes sense

The right tool for the right shape of need.

Bridging seasonal revenue

Restaurants between peak quarters, retailers stocking before Q4, contractors waiting on receivables. Repayment scales with revenue, so slow months pay less.

Time-sensitive opportunities

An inventory deal, an equipment purchase at discount, a marketing window. You need capital this week, not next quarter. MCAs fund in days.

Below traditional bank thresholds

Under two years in operation, FICO under 680, or revenue patterns that don't fit a bank's box. MCA underwriting is built around cash flow, not perfection.

When to consider alternatives

An MCA isn't for everyone.

We'd rather say so up front than match you into the wrong product. If any of these describe you, look elsewhere first.

Long-term capital needs

Real estate, multi-year expansion, or large equipment purchases usually fit a term loan or SBA loan better than an MCA.

Consider: SBA 7(a) or 504

Strong bank relationship and time

If your bank will lend at 8–12% APR and you can wait 30–60 days, that's almost always cheaper than an MCA.

Consider: bank line of credit

Equipment-specific purchase

If the capital is for a specific titled asset (truck, machinery, vehicle), equipment financing is usually a better structural fit.

Consider: equipment financing

Industries we serve

Dedicated guides for common verticals.

Our lenders underwrite across most US industries. These are the verticals we match most often.

FAQ

Common questions about MCA.

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