Merchant Cash Advance — Fast Business Funding

Merchant Cash Advance at a glance

Typical amount

$5,000 – $500,000

Typical term

3 – 18 months

Factor Rate

1.10 – 1.50 factor rate

Minimum time in business

6 months

Minimum credit score

500+

Common uses for a MCA

• Inventory purchases
• Payroll gaps
• Emergency repairs
• Seasonal cash flow

How LendWorks matches you with a MCA lender

1. Apply in about two minutes — no credit-score impact.
2. Our AI underwriting engine grades your file and matches you with a dedicated advisor.
3. Your advisor presents vetted Merchant Cash Advance offers side by side — you choose or walk away.

Merchant Cash Advance FAQs

What is a Merchant Cash Advance?

A merchant cash advance delivers a lump-sum advance against your future credit card or daily revenue, repaid as a fixed percentage of daily sales.

How much can I borrow with a MCA?

Typical funding amounts range from $5,000 – $500,000. Your exact offer depends on revenue, time in business, credit profile, and business performance.

What are the rates for Merchant Cash Advance?

Merchant Cash Advance typically runs 1.10 – 1.50 factor rate. Your actual pricing depends on revenue, time in business, credit profile, and term — your advisor breaks down the real cost and total payback before you commit, so there are no surprises.

How long does it take to get funded with Merchant Cash Advance?

Funding timelines vary by product and lender — some options fund within a few business days, while larger or government-backed programs take longer. Your advisor gives you a realistic timeline for Merchant Cash Advance based on your documents and lender fit.

What do I need to qualify for Merchant Cash Advance?

Most lenders look for at least 6 months in business and a 500+ credit score. Your advisor will assess your full profile.

Is Merchant Cash Advance right for my business?

Merchant Cash Advance fits best when you need inventory purchases or payroll gaps and can work with a 3 – 18 months term. If your timeline is longer or you can wait for a lower rate, your advisor may recommend an alternative — the goal is the right fit, not just the fastest approval.

How does LendWorks match me with a MCA lender?

LendWorks runs your profile through AI underwriting to match you with a real advisor — not a lead form. Your advisor reviews your situation and presents options from our vetted lender network.

Does applying for Merchant Cash Advance hurt my credit score?

Checking your options with LendWorks does not impact your credit score. We use a soft pull to assess eligibility. A hard pull only occurs when you move forward with a specific lender offer.

Frequently asked questions

How does a merchant cash advance work?

A funder purchases a fixed amount of your future business revenue — called the "purchased amount" — for a discounted upfront payment. For example, a funder might pay you $100,000 today in exchange for $135,000 in future revenue, expressed as a 1.35 factor rate. Repayment is collected via daily or weekly ACH debits from your business bank account at a fixed percentage of your deposits (the "remittance rate"), typically 10–20%. As your revenue rises, you repay faster; in slower months, the actual dollar amount debited is smaller.

What is a factor rate and how does it differ from an interest rate?

A factor rate is a simple multiplier applied to the advance amount to calculate the total repayment obligation. A 1.35 factor rate on a $100,000 advance means you repay $135,000 total — a $35,000 cost of capital. Unlike an interest rate, the cost is fixed at origination and does not accrue over time. However, because MCAs are typically repaid in months rather than years, the equivalent annual percentage rate (APR) is often very high — sometimes 40–200%+ — which is an important consideration for borrowers evaluating total cost.

Does an MCA affect my credit score?

Most MCA funders perform only a soft credit pull during underwriting, which does not affect your credit score. However, if you default and the account goes to collections or litigation, it can appear on your personal or business credit report. Some funders do report positive payment history to business credit bureaus, which can be a benefit if you maintain your account in good standing.

Can I get a merchant cash advance with bad credit?

Yes. MCAs are among the most accessible funding products for business owners with imperfect credit because underwriting is primarily based on business revenue and cash flow, not personal credit. Many funders will approve borrowers with FICO scores in the 500s, and some have no stated minimum. The trade-off is that lower-credit applicants typically receive higher factor rates and smaller advance amounts relative to their revenue.

What is MCA stacking and why is it risky?

Stacking refers to taking multiple MCAs simultaneously from different funders. Because MCA funders do not always report to central credit bureaus, a business can technically obtain multiple advances at once. However, stacking significantly increases daily payment obligations, reduces cash flow, and dramatically increases the risk of default. Most reputable funders restrict stacking in their contracts, and brokers have an ethical and legal obligation to avoid placing clients in deals that create unsustainable debt loads.

How much can I borrow with a merchant cash advance?

Most funders will advance between 75% and 150% of your average monthly gross revenue. A business averaging $100,000 per month might qualify for $75,000 to $150,000. Maximum advance amounts vary significantly by funder — some cap at $500,000, while larger specialty funders will go to $5 million or more for high-revenue businesses. Your position (first position vs. second position) also affects the available advance size.

What is the difference between a merchant cash advance and a business loan?

A business loan is a debt instrument: you borrow a fixed amount and repay it with interest on a defined schedule, and the lender holds a security interest or personal guarantee. An MCA is a commercial transaction: the funder purchases future receivables, not a debt obligation. This distinction has regulatory implications — MCAs are generally not subject to usury laws that cap interest rates on loans. For borrowers, the practical differences are flexible repayment (MCA) versus fixed payment (loan) and generally higher cost (MCA) versus lower cost (loan) when comparing APR-equivalent figures.

Are merchant cash advances regulated?

MCAs occupy a regulatory gray area in most U.S. states because they are structured as commercial transactions rather than loans. However, a growing number of states — including California, New York, Florida, Virginia, Georgia, Utah, Connecticut, Kansas, Missouri, and Texas — now require commercial financing disclosures (including APR-equivalent figures) for small business financing transactions under certain dollar thresholds. The Federal Trade Commission also monitors the MCA space for deceptive practices. Regulation is evolving rapidly, and both funders and brokers should stay current on state-specific disclosure requirements.