How a merchant cash advance works
An MCA is a purchase of a portion of your future receivables, not a loan. The funder advances a lump sum, and you repay a fixed total amount (the advance multiplied by a factor rate) through scheduled daily or weekly debits from your business bank account.
Because the total payback is set on day one, you always know the full cost before you sign. Many offers also include an early-payoff discount if you pay the balance ahead of schedule.
What you need to apply
A short online application and your last few months of business bank statements are usually enough to receive an offer. Funders focus on your average monthly deposits, the number of negative-balance days, and any existing advances on your account.
Is an MCA the right fit?
An MCA is built for speed and flexibility, and it costs more than a bank loan. It makes the most sense when the opportunity or problem in front of you is worth more than the cost of capital, such as inventory you can sell at a margin, a contract you can now fulfill, or equipment that keeps revenue flowing. Use our MCA calculator to see the total payback and estimated APR before you apply.
