Merchant Cash Advance
Get immediate capital in exchange for a percentage of your future credit card sales. Perfect for businesses with strong daily transactions.
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What is a Merchant Cash Advance?
A Merchant Cash Advance (MCA) is not technically a loan — it's an advance on your future credit card sales. You receive a lump sum upfront, and the MCA provider collects repayment by taking a fixed percentage of your daily credit card transactions until the advance is fully repaid.
MCAs are ideal for businesses with high credit card volume that need fast access to capital and prefer flexible repayment tied to their sales performance. When sales are strong, you repay faster. When sales slow down, repayment automatically adjusts.
Pros
- Funded in 24–48 hours
- No fixed monthly payments
- Repayment adjusts with sales volume
- Minimal documentation required
- No collateral needed
Cons
- Higher cost than traditional loans
- Daily deductions can impact cash flow
- Not ideal for businesses with low card volume
- Factor rates can be confusing
- May create dependency on advances
Who Should Consider a Merchant Cash Advance?
MCAs work best for businesses with consistent credit card sales that need capital quickly and value flexible repayment over low interest rates. They're ideal for:
- Restaurants and cafes
- Retail stores and boutiques
- Salons and spas
- E-commerce businesses
- Service providers with card payments
- Seasonal businesses with fluctuating revenue
Eligibility Requirements
3+ months in business
Short operating history accepted
$5,000+/mo in card sales
Consistent credit card transaction volume required
Funded in 24–48 hours
One of the fastest funding options available
No collateral required
Future sales serve as repayment source
Rates & Terms Breakdown
| Feature | Details |
|---|---|
| Advance Amount | $5,000 – $500,000 |
| Factor Rate | 1.15 – 1.50 (not an APR) |
| Repayment Method | Daily % of credit card sales |
| Approval Time | 24 – 48 hours |
| Collateral | None required |
| Personal Guarantee | May be required |
| Prepayment Penalty | Varies by provider |
| Best For | Fast cash, flexible repayment, high card volume |
Is a Merchant Cash Advance Right for You?
If you need capital fast and have strong credit card sales, an MCA can provide immediate relief. Just be aware of the higher cost and daily deductions. It's best used for short-term needs, not long-term financing.
Ready to Get Started?
Apply in minutes and get funded in as little as 24 hours.
Rates, Terms & Approval Disclosure: All loan amounts, interest rates, repayment terms, and funding timelines shown on this page are representative ranges only and are not guaranteed. Actual offers are determined by individual lender underwriting criteria and depend on your business revenue, credit profile, time in business, and other factors. Approval is not guaranteed. Capital Corner is a loan broker — not a direct lender — and does not make credit decisions. We connect applicants with our network of third-party lending partners who make all final lending decisions. Submitting an application does not constitute a commitment to lend, and no funds will be disbursed without a signed agreement from an approved lender. Results vary. Not all applicants will qualify for the amounts or rates advertised. This information is for general educational purposes only and does not constitute financial, legal, or tax advice.