Overview
A merchant cash advance gives your business a lump sum upfront in exchange for a percentage of future sales. It's not a traditional loan. Repayment adjusts with your revenue. When sales are strong, you pay more. When they slow down, so do your payments.
MCAs are built for speed. Most businesses get approved and funded within 24–48 hours. Credit requirements are lower than traditional loans, and the application process is minimal. If your business does consistent revenue, an MCA can get capital in your hands fast.
How do I get one?
Key qualification requirements:
Business Revenue
The business must have a consistent flow of revenue, particularly from credit card sales, as this is what the MCA provider will use to determine eligibility and advance amounts.
Type of Business
MCAs are typically available to a wide range of businesses, particularly those in retail, hospitality, and other industries with regular credit card sales.
Time in Business
Most MCA providers require the business to have been operating for a certain period, often at least six months to a year.
Daily Credit Card Receipts
The MCA provider will review the business's daily credit card transactions to assess the risk and determine the advance amount. The higher the volume, the more likely the business will qualify for a larger advance.
Business Bank Statements
Lenders often require a few months of bank statements to evaluate the business's cash flow and overall financial health.
No Major Liens or Judgments
The business should not have any significant outstanding liens or judgments, as this may disqualify it from receiving an MCA.
Ability to Repay
Although the MCA is repaid through a percentage of daily sales, the provider will still evaluate whether the business is likely to generate sufficient revenue to meet the repayment terms.
FAQ