Merchant Cash Advance
Merchant Cash Advances offer quick and easy funding, with amounts ranging from $5,000 to $500,000. Funding is typically provided within 24-48 hours. No minimum credit score is required, and repayments are usually made daily via ACH or a percentage of daily credit card sales.
Applying is free and won't impact your credit score.
What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is a quick funding option where businesses receive a lump sum in exchange for a portion of their future credit and debit card sales, plus a fee. A Merchant Cash Advance is NOT a loan; it is the sale of future transactions at a discount, making it easier to qualify for. Fees are determined based on a factor rate rather than a traditional interest rate, typically ranging from 1.15 to 1.48. This factor is multiplied by the advance amount to determine the total repayment.
How Merchant Cash Advances Work
- Receive Funds: Once you accept the offer, the agreed-upon lump sum is transferred to your business bank account, usually within 24-48 hours. This immediate access to capital can be used for various business needs, such as purchasing inventory, covering payroll, or funding expansion projects.
- Repayment: Repayments are typically made daily or weekly through automatic deductions from your merchant account or business bank account. The payment amount is a fixed percentage of your daily credit card and debit card sales.
- Automatic Deductions: The MCA provider works with your payment processor or bank to automatically deduct the agreed-upon percentage of sales. This automation simplifies the repayment process and ensures consistent payments without manual intervention.
Fast Funding
Merchant Cash Advances are a fast funding program. From the time of application, a small business can be funded their full approved amount in as little as 24 hours!
No Collateral Required
Unlike traditional loans, merchant cash advances do not require you to put up any collateral!
Set Payback Amount
Cash advances are not based on an accruing interest rate like a traditional loan using an APR. You have a set payback amount that will not increase.
Easy Approval Process
There is little paperwork required to apply, making the approval process fast and easy. Applications can be approved the same day you apply.
Do I qualify?
Minimum Qualifications
No minimum FICO
At least 1 year in business
$100,000+ in annual revenue
What You Need To Apply
Basic info about your business
Business checking account
Last 3 months business bank statements
Merchant Cash Advance Costs and Fees
- Total Repayment Amount: The total amount to be repaid is determined by the factor rate. For example, if you receive a $20,000 advance with a factor rate of 1.18, you will repay $23,600 ($20,000 x 1.18). The factor rate reflects the cost of borrowing and is higher than traditional interest rates, translating to a significant cost of capital.
- Duration of Repayment: The repayment period varies depending on your sales volume. The average repayment time for an MCA is typically 8 to 9 months, but it can range from 4 to 18 months.
- Early Repayment: Unlike traditional loans, MCAs generally do not offer benefits for early repayment. You will still be required to repay the full agreed-upon amount regardless of how quickly you pay off the advance.
Merchant Cash Advance Calculator
*Results shown are for general informational purposes and illustration only, and is not to be treated as an offer. Applications are subject to approval.
Advantages of Merchant Cash Advances
- Fast Funding: Access funds as quickly as 24 hours.
- Easy Qualification: Suitable for businesses with poor credit or limited operational history.
- Flexible Use: Funds can be used for various business needs.
How to Get a Merchant Cash Advance
Merchant Cash Advances (MCAs) offer a swift and flexible way to secure funding based on your future sales. Here's a step-by-step guide to help you obtain a Merchant Cash Advance for your business:
1. Assess Your Funding Needs
- Identify Your Purpose: Determine why you need the MCA. Whether it’s for managing cash flow, purchasing inventory, covering payroll, or funding a business expansion, having a clear purpose will help you decide the appropriate advance amount.
- Calculate the Amount: Estimate the amount you need based on your specific purpose. Consider your daily or weekly sales volume and how much of it you can afford to allocate towards repayment without straining your cash flow.
2. Evaluate Your Eligibility
When considering a Merchant Cash Advance, providers typically look at several key factors:
- Business Revenue: MCA providers will assess your average monthly credit card and debit card sales to determine your eligibility. They typically look for a minimum of $10,000 in monthly sales, but our network often has more flexible requirements, which can be advantageous for newer or smaller businesses.
- Credit History: While MCAs are less dependent on credit scores compared to traditional loans, having a good credit history can still help you secure better terms. Most MCA providers will look at your personal and business credit scores to evaluate your financial reliability.
- Time in Business: MCA providers in our network may only require a minimum of six months to one year. A longer operational history can convey stability and potentially lead to better rates.
3. Submit Your Application
Applying for a merchant cash advance at Status Funding is designed to be quick and easy. Our online application process can be completed in just a few minutes. During the application, you will be asked to provide details about your business which includes the owner's information, general business information, the last three months of bank statements, identity verification documents, and a business checking account. Once submitted, our advanced algorithm swiftly evaluates your business profile to match you with the ideal lenders, ensuring a perfect fit for your financial needs. If approved, you will receive business term loan offers to review and select the best offer that suits your needs. This enables you to access the capital your business requires, often within as little as 24 hours, streamlining the process to get you funded efficiently and effectively.
Pros and Cons
Fast funding
No collateral required
Does not require great credit
Easy approval process
Amount owed does not increase
Typically higher fees than a traditional loan
Repaid on a daily / weekly basis
Our application process is easy.
1
Apply Instantly
Fill out our quick and easy online application. It only takes a few minutes and won't affect your credit score.
2
Discover Your Options
Receive personalized funding offers, carefully curated to align with your business goals and requirements.
3
Get Funded
Choose the best funding offer for you and access the capital your business needs in as little as 24 hours.
*The content provided on this page reflects the opinions and insights of Status Funding, based on our research, methodologies, evaluations, and various additional considerations. This information is accurate as of the initial publication date. Status Funding makes every effort to update and maintain the accuracy of this content to ensure its relevance and accuracy, however, the information may differ from what you may find on other platforms, including financial information sites, different service providers, or specific product pages. All information is presented without any warranty. We encourage you to carefully review the terms and conditions, relevant policies, contractual agreements, and all applicable details of the financial institution when considering offers. The ranges mentioned here do not represent pre-qualified offers. Ranges may be greater or less based on the information provided in your business financing application. Please be aware that Status Funding may receive compensation from financial institutions that are reviewed on this page if you proceed to obtain business financing through them.
