MCA Requirements: What You Need to Qualify

Merchant cash advance requirements are more flexible than traditional bank loans, but funders still have minimum standards. Understanding these requirements before you apply helps you prepare and improves your chances of approval.

Basic MCA Requirements

While each funder sets its own criteria, most MCA funders look for these baseline requirements:

• Time in business: Minimum 3-12 months (most funders prefer 6+ months)
• Monthly revenue: Typically $10,000-$25,000 minimum in gross deposits
• Credit card processing: Regular card transaction volume (usually $5,000+/month)
• No active bankruptcies: Most funders require bankruptcy to be discharged

Revenue Requirements

The most important factor for MCA approval is your business revenue. Funders use your deposit volume to determine how much you can afford to repay.

Minimum Revenue Thresholds

• Start-up friendly: $10,000/month minimum (few funders)
• Standard requirement: $15,000/month minimum (most funders)
• Premium funders: $25,000/month minimum (larger advances)

How Funders Calculate Revenue

Funders typically look at your bank statements and credit card processing statements from the past 3-6 months. They calculate your average monthly deposits and use this to determine your advance amount and remittance percentage.

Credit Score Requirements

MCA funders are more flexible on credit than traditional lenders, but they still check your history.

Required Documents

Prepare these documents before applying to speed up the approval process:

• Bank statements: Last 3-6 months (all business accounts)
• Credit card processing statements: Last 3-6 months (if applicable)
• Driver license: Proof of identity for principal
• Business license: Registration or DBA documentation
• Voided check: For funding setup

Additional Documents That Help

• Recent tax returns (business and personal)
• Accounts receivable aging report
• Business leases or contracts
• Equipment lists (for equipment financing)

Time in Business Requirements

Most MCA funders require at least 6 months in business, though some work with newer businesses.

• 6+ months: Easiest to qualify, most funders available
• 3-6 months: Limited options, higher rates
• Under 3 months: Very limited options, may need co-signer

Industries That Qualify Easily

Some industries have more funder options and easier approval:

• Restaurants and food service
• Retail stores
• Auto repair shops
• Medical and dental practices
• Salons and spas
• E-commerce businesses

What Disqualifies You from MCA

• Active bankruptcy: Most funders require discharge
• Recent charge-offs: Outstanding merchant cash advance defaults
• Insufficient revenue: Below minimum deposit requirements
• Illegal business types: Cannabis, gambling, adult industries often excluded
• New business with no revenue history: Cannot verify ability to repay

How to Improve Your Chances

1. Clean up bank statements: Remove unnecessary transfers and hold fees
2. Increase processing volume: Higher card sales mean larger advances
3. Resolve credit issues: Pay off collections before applying
4. Build business age: Wait until you meet minimum time requirements
5. Gather documentation: Have everything ready before applying

What Happens After You Apply

The typical MCA approval process works like this:

1. Application submission: 5-10 minutes online
2. Initial review: 1-4 hours for pre-qualification
3. Document verification: 2-24 hours
4. Final approval: Same day or next business day
5. Funding: 24-72 hours after approval