Merchant Cash Advance (MCA) is a loan backed by your credit card transactions. A percentage of each transaction is taken and applied to the loan.

This means you have a good day, you pay more, a bad day, you pay less.

This is a great option if you take credit cards, but have less than perfect credit score, time in business, or revenues. Grow your business as you become qualified for more traditional loans.

How it works

Merchant Cash Advance lenders look at the aging reports on a business’s credit card revenue and advance an agreed upon amount. The lender will then collect a suitable amount to pay the loan back by daily withholding a percentage of the credit card deposits. The loan will then be paid back over an average of 3 to 12 months.

What’s the Cost?

Merchant cash advance interest rates range from eighteen to forty percent and should be considered a short-term financing option. The cost of capital is generally more expensive than longer term loan types.

What it’s Good For?

A merchant cash advance allows a business to borrow against future earnings. Requirements for this type of financing are extremely lenient due to the nature and terms of the loan. Generally, any business that needs access to fast working capital can qualify.


Normally, credit is not pulled and financial documents are not required for approval. Loans are granted after the lender is able to look at the last 4 – 6 months of bank statements to determine the cash flow of the business.