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.

MCA Funding Glossary

Essential terminology every business owner should know when considering merchant cash advances.

Merchant Cash Advance (MCA)

A financing arrangement where a business receives a lump sum payment in exchange for a portion of future credit card or ACH revenue. Unlike loans, MCAs are not subject to usury laws and are regulated as commercial transactions.

Factor Rate

A multiplier (typically 1.1 to 1.5) applied to the advance amount to determine the total repayment. For example, a $10,000 advance with a 1.3 factor rate requires $13,000 in repayments.

Remittance

The method and frequency by which the business repays the MCA. Can be daily, weekly, or monthly ACH withdrawals based on a percentage of daily credit card processing volume.

Holdback

The percentage of daily credit card processing that is automatically withheld for MCA repayment. Typical holdback rates range from 10% to 20% of daily card sales.

Advance Amount

The lump sum of capital provided to the business. MCA advances typically range from $5,000 to $500,000 or more, based on monthly revenue.

Daily Split

The percentage of daily credit card receipts allocated to the MCA lender versus the business. A daily split of 80/20 means 80% goes to the lender and 20% to the business.

Renewal

An additional MCA advance provided to an existing customer, typically after the original advance has been substantially paid down. Renewals often come with new terms and factor rates.

Clawback

A policy where the lender can seek repayment of the advance if the merchant closes their business or significantly reduces processing volume within a specified period, typically 90 to 180 days.

ACH Funding

Repayment method where funds are automatically deducted from the business bank account on a scheduled basis (daily or weekly) via the ACH network.

Credit Card Processing Volume

The total amount of credit card transactions a business processes monthly. This is the primary factor in determining MCA eligibility and advance amount.

Locked Funding

An MCA where the repayment amount is fixed rather than tied to a percentage of processing. The business pays a set amount until the total is repaid.

Flex Funding

An MCA with variable remittance based on a percentage of daily card sales. When sales are high, more is paid; when sales are low, less is paid.

Short-Term Funding

MCA alternatives with shorter repayment terms, typically 3 to 12 months. Often used for immediate capital needs with fast repayment.

Revenue-Based Financing

Similar to MCA but based on overall revenue rather than just credit card processing. More flexible for businesses with diverse revenue streams.

Sub-Prime

Borrowers with credit scores below 650 or other risk factors that disqualify them from traditional bank financing. MCAs often specialize in sub-prime borrowers.

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