Best Merchant Cash Advance Funders for Bad Credit

Having bad credit does not mean you cannot get business funding. Merchant cash advance funders specialize in approvals based on business revenue rather than personal credit scores. This guide covers which funders accept bad credit and how to improve your approval odds.

Can You Get an MCA With Bad Credit?

Yes. Unlike traditional bank loans that heavily weight credit scores, MCA approvals are primarily based on your business revenue history. Most MCA funders accept credit scores as low as 500, and some do not have a minimum credit score requirement at all.

What matters most is your:

• Monthly credit card and ACH processing volume
• Consistency of revenue over the past 3-6 months
• Time in business
• Overall business health

Best MCA Funders for Bad Credit

Based on our network of funders, these options have the highest approval rates for businesses with challenged credit:

1. National Funding

• Minimum Credit Score: 500
• Time in Business: 6+ months
• Monthly Revenue: $8,000+
• Funding Amount: $5,000 - $500,000

National Funding is known for working with restaurants, trucking companies, and other industries that traditional lenders avoid. They have high approval rates for B and C paper.

2. Shield Funding

• Minimum Credit Score: 540
• Time in Business: 3+ months
• Monthly Revenue: $15,000+
• Funding Amount: $10,000 - $1,000,000

Shield Funding specializes in startups and businesses with very low time in business. They work with credit scores as low as 540.

3. Credibly

• Minimum Credit Score: 500
• Time in Business: 6+ months
• Monthly Revenue: $15,000+
• Funding Amount: $5,000 - $400,000

Credibly is popular in the restaurant and retail verticals. They offer competitive factor rates among sub-prime funders.

4. Rapid Finance

• Minimum Credit Score: 550
• Time in Business: 2+ months
• Monthly Revenue: $10,000+
• Funding Amount: $5,000 - $1,000,000

Rapid Finance offers one of the widest product ranges and can fund up to $1 million. They also provide SBA loan assistance for qualified businesses.

5. CAN Capital

• Minimum Credit Score: 550
• Time in Business: 4+ months
• Monthly Revenue: $7,500+
• Funding Amount: $2,500 - $250,000

One of the oldest players in alternative funding, CAN Capital has been in business since 1998. They offer daily or weekly remittance options.

What Funders Look For

Even with bad credit, MCA funders evaluate several factors to determine approval:

Bank Statement Analysis

Funders review your last 3-6 months of bank statements to assess:

• Average daily balance
• Revenue consistency
• Number of NSF (insufficient funds) charges
• Overall cash flow patterns

Processing Volume

Businesses that process significant credit card volume are ideal MCA candidates because the repayment can be automatically deducted from future card processing.

Time in Business

Newer businesses (under 12 months) face more scrutiny, but several funders specialize in startups. The longer you have been in business, the better your chances.

How to Improve Your Approval Odds

1. Clean Up Bank Statements

Reduce NSF charges, maintain consistent balances, and avoid large unexplained withdrawals before applying.

2. Increase Processing Volume

If possible, increase your credit card processing volume before applying. Higher volume means more available funding.

3. Resolve Open Tax Liens

Some funders will approve businesses with tax liens if they are currently in a payment plan. Resolving liens entirely improves your chances significantly.

4. Apply for the Right Amount

Requesting too much relative to your revenue is a common rejection reason. Use our funding calculator to estimate what you qualify for.

5. Work With an ISO

An Independent Sales Organization like Velica Capital has relationships with multiple funders and can match you with the best option for your specific situation.

What to Expect With Bad Credit

If approved with bad credit, expect:

• Higher factor rates: Typically 1.35 - 1.50 instead of 1.15 - 1.25
• Lower advance amounts: May receive 80% of what better-credit businesses get
• Shorter terms: Some funders offer shorter repayment periods for riskier profiles

Ready to Apply?

Velica Capital works with funders who specialize in bad credit approvals. Our application takes under 5 minutes with no hard credit check to see your estimates.