Get a lump-sum advance based on your daily revenue — repay automatically as a percentage of sales. No fixed monthly payments. No collateral required.
A Merchant Cash Advance is a financing arrangement where your business receives a lump-sum payment upfront in exchange for a percentage of your future daily sales. Unlike a loan, you are technically selling a portion of future receivables — which is why MCA providers can offer faster approvals with fewer requirements.
Instead of a traditional interest rate, MCAs use a factor rate — a simple multiplier that determines the total amount you'll repay. For example, a $50,000 advance at a factor rate of 1.30 means you'll repay $65,000 in total. The repayment is pulled automatically as a fixed percentage (called the "holdback") of your daily or weekly card sales until the full amount is collected.
From application to repayment — here's exactly how the MCA process unfolds step by step.
You submit a short application along with 3–6 months of bank statements or credit card processing statements. No lengthy business plans or tax returns required in most cases. The provider evaluates your average monthly revenue to determine eligibility and advance size.
⚡ As fast as same-day decisionThe MCA provider presents an offer specifying: the advance amount, the factor rate (e.g., 1.25 or 1.40), and the holdback percentage. The factor rate multiplied by the advance amount equals your total repayment. Review this carefully — the total cost differs from a traditional APR.
💡 Lower factor rate = lower total costOnce you sign the agreement, the advance amount is deposited directly into your business bank account — often within 24 to 48 hours of approval. There's no restriction on how you use the funds: inventory, payroll, equipment, marketing, or emergency expenses.
🏦 Funds deposited in 1–2 business daysEach business day, the provider automatically deducts the agreed holdback percentage from your credit/debit card settlements or directly from your bank account via ACH. During strong sales months, you repay faster. During slow seasons, payments automatically shrink with your revenue — protecting your cash flow.
📉 Payments flex with your sales volumeRepayment ends automatically once the total amount (advance × factor rate) has been collected. There are no prepayment penalties and no final balloon payment — the process simply stops when the total is reached. Many businesses renew for additional advances at this point.
✅ No balloon payment, no surprisesRevenue-based financing built for businesses that need capital fast and want flexibility tied to real business performance.
Factor rates, advance amounts, and qualification benchmarks vary by provider and your sales history.
| Parameter | Typical Range | Notes |
|---|---|---|
| Advance Amount | $5,000 – $500,000 | Based on avg. monthly card sales |
| Factor Rate | 1.10 – 1.50× | Lower = lower cost. Aim for below 1.40 |
| Holdback Percentage | 5% – 20% of daily sales | Higher = faster repayment |
| Est. Repayment Period | 3 – 18 months | Tied to your revenue volume |
| Effective APR (est.) | 40% – 350%+ | Higher the faster you repay |
| Min. Credit Score | 500+ | Credit is less important than revenue |
| Min. Monthly Revenue | $10,000 – $15,000 | Varies by provider |
| Time in Business | 4–6 months minimum | Some providers accept startups |
| Collateral Required | None | Unsecured financing |
| Approval Speed | 24 – 48 hours | Often same-day decision |
$50,000 advance · Factor rate 1.30 · Total repayment: $65,000 · Holdback: 15% daily
$40K/month in sales → ~$6,000/mo repaid → approx. 10.8 months to fully repay
Sales drop to $20K/mo → repayment drops to ~$3,000/mo automatically — no penalty
MCAs offer unmatched speed and flexibility, but they come at a premium cost. Understand both sides before applying.
MCAs work best for businesses with strong, consistent card-based revenue that need capital quickly and want payment flexibility.
Apply in 2 minutes · Revenue-based approval · Funds in 24–48 hours
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