How fast can I get funded with a merchant cash advance?

Many merchant cash advances receive approval within 4-24 hours, with funds deposited within 1-3 business days after approval.

What credit score do I need for business funding?

Some MCA funders accept credit scores as low as 500, while traditional lenders typically require 625+.

How much can I get with a merchant cash advance?

MCA amounts typically range from $5,000 to $500,000 or more, based on your monthly revenue.

What is a factor rate?

A factor rate is a multiplier (typically 1.1 to 1.5) used to calculate the total repayment amount for MCAs.

Do you require collateral for business funding?

Most merchant cash advances are unsecured. Equipment financing uses the equipment as collateral.

How does the application process work?

Our online application takes about 5 minutes. Most applications receive a decision within 4-24 hours.

How Does a Merchant Cash Advance Affect Your Business Credit?

One common question from business owners considering a merchant cash advance is how it will affect their business credit. Unlike traditional loans, MCAs work differently, and their impact on credit is not always straightforward. Here is what you need to know.

MCAs Typically Do Not Report to Business Credit Bureaus

Most merchant cash advances do not report to major business credit bureaus such as Experian, Dun & Bradstreet, or Equifax. This means taking out an MCA will not directly build or hurt your business credit score in the traditional sense.

Since MCAs are not technically loans, they often do not appear on business credit reports at all. This can be both an advantage and a disadvantage depending on your goals.

No Credit Build, But No Credit Damage

Because MCAs are not typically reported, they will not help you build business credit history. However, they also will not negatively affect your business credit scores as long as you repay as agreed.

If you default on an MCA, the funder may report the delinquency or sell the debt to a collections agency, which can then be reported and damage your business credit.

Personal Credit May Be Affected

Many MCA funders require a personal guarantee as part of the application process. If you provide a personal guarantee, the MCA may appear on your personal credit report, especially if the funder reports to consumer credit bureaus.

Additionally, if you default on the MCA and the lender pursues collections, this can show up on your personal credit and affect your personal credit score.

Indirect Credit Effects

While the MCA itself may not appear on your business credit, taking on additional debt can affect your business creditworthiness in other ways:

Debt service ratio: Lenders may look at your existing debt when evaluating future applications
Cash flow impact: High daily payments can strain your business finances
Business age: Taking an MCA when your business is very new may signal risk

Using MCAs Strategically

Since MCAs do not typically build credit, they should be used for specific business purposes rather than as a credit-building tool:

Short-term working capital needs
Emergency funding
Time-sensitive business opportunities
Inventory or equipment purchases

If You Need to Build Business Credit

If building business credit is a priority, consider combining an MCA with other credit products that do report to business credit bureaus, such as:

Business credit cards
Small business term loans
Equipment financing
Trade credit from suppliers

The Bottom Line

Merchant cash advances typically do not appear on business credit reports, so they neither build nor hurt your business credit directly. However, defaults can be reported and personal credit may be affected if you provided a personal guarantee.

Have questions about how an MCA fits into your business financing strategy? Talk to our team to explore your options.