What Is a Merchant Cash Advance?
A simple, flexible way to access business capital based on your revenue — not your credit score.
A merchant cash advance (MCA) is a form of small business financing where a lender provides a lump sum of cash upfront. In return, you agree to repay the advance — plus a fee — through a fixed percentage of your daily credit card and debit card sales. Payments are automatic and flexible: when sales are slow, you pay less; when business is booming, you pay back faster.
Unlike traditional bank loans, MCAs don't require perfect credit, extensive paperwork, or weeks of waiting. They're one of the most accessible and fastest forms of business funding available — making them popular with restaurants, retailers, contractors, and any business that needs capital now.
How a Merchant Cash Advance Works
Three simple steps from application to funded.
1
Apply in Minutes
Fill out a short online form — business name, monthly revenue, how much you need. No hard credit pull. Takes about 2 minutes.
2
We Shop 50+ Lenders
The Broker Shop submits your profile to our entire lender network and comes back with the best offers — ranked by rate and terms.
3
Pick Your Offer & Get Funded
You choose the offer that works best for your business. Funds hit your account in as little as 24 hours. No surprises, no hidden fees.
MCA Requirements
What you typically need to qualify.
Time in Business
6+ months
Credit Score
500+ (flexible)
Funding Speed
Same day – 24 hrs
Pros & Cons of a Merchant Cash Advance
Understand whether an MCA is the right product for your situation.
✓ Advantages
- Fastest funding available — same day or 24 hours
- No collateral required
- Flexible repayment tied to daily sales
- Accessible with lower credit scores
- Minimal paperwork compared to bank loans
- No fixed monthly payments to miss
⚠ Considerations
- Factor rates are higher than traditional loans
- Daily deductions affect cash flow
- Best for short-term capital needs
- Not ideal if business has very low card volume
Merchant Cash Advance FAQs
Everything you need to know before you apply.
What is a merchant cash advance? ▲
A merchant cash advance (MCA) is a type of business financing where a lender provides a lump sum of cash in exchange for a percentage of your future daily credit and debit card sales, plus a fee. Repayment is automatic — a fixed percentage is deducted from your daily transactions until the balance is repaid.
How fast can I get a merchant cash advance? ▼
Most merchant cash advances are approved within hours and funded within 24 hours. Same-day funding is common. It's the fastest form of small business financing available — significantly faster than a bank loan or SBA loan.
What credit score do I need for a merchant cash advance? ▼
MCA lenders focus primarily on your monthly revenue and business history — not your personal credit score. Many lenders approve businesses with credit scores as low as 500. What matters most is that your monthly revenue is consistent and meets the minimum threshold (typically $10,000+/month).
How much can I get with a merchant cash advance? ▼
Most businesses qualify for 50%–150% of their average monthly revenue. If your business brings in $50,000/month, you may qualify for $25,000–$75,000. Through The Broker Shop, we shop 50+ lenders to find your highest approval amount and best terms.
Is a merchant cash advance the same as a business loan? ▼
No. An MCA is technically a purchase of future receivables, not a loan. This means it's not subject to the same regulations as a traditional loan, approval is faster, and repayment flexes with your sales rather than being a fixed monthly payment.
What businesses qualify for a merchant cash advance? ▼
Any US business with at least 6 months in operation and $10,000+ in monthly revenue can apply. MCAs are especially popular with restaurants, retail stores, contractors, salons, trucking companies, and any business with consistent revenue — even if credit is imperfect.
Explore Other Funding Options
Not sure an MCA is right for you? We offer every funding type.