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Merchant Cash Advance

Capital Based on Your Future Sales — Not Your Credit Score

A merchant cash advance gives you a lump sum of capital in exchange for a percentage of your future daily credit card and debit card sales. No fixed monthly payments — you pay more when sales are strong and less when they're slow.

MCA at a Glance

Advance Amount$5,000 – $2,000,000
Factor Rate1.10 – 1.50
Holdback %5% – 20% of daily sales
Funding Speed24–48 Hours
Monthly Card Sales$5,000+
Time in Business4+ Months
Credit Score500+ (very flexible)
CollateralNone required

How a Merchant Cash Advance Works

An MCA isn't a loan — it's a purchase of your future receivables. This distinction means simpler qualification, faster funding, and payments that flex with your revenue.

Apply in Minutes

Provide basic business info and 4 months of bank/processing statements. No tax returns needed.

Get Approved Fast

Approval decisions in hours, not weeks. Most businesses receive an offer within the same business day.

Receive Your Advance

Lump sum deposited directly to your business bank account within 24-48 hours of acceptance.

Flexible Repayment

A small percentage (5-20%) of each day's card sales is automatically withheld. Slow sales day = lower payment. Busy day = higher payment.

MCA Example

Advance Amount$75,000
Factor Rate1.30
Total Repayment$97,500
Holdback Rate12% of daily sales
If daily sales = $3,000Daily payment: $360
If daily sales = $1,500Daily payment: $180

*Payments automatically adjust with your sales volume.

Who Benefits Most from MCAs?

Restaurants & Bars

High daily card volume makes MCA perfect. Cover renovations, equipment, seasonal staffing, or marketing pushes.

Retail Stores

Stock inventory for holiday seasons, expand product lines, or renovate your storefront with flexible capital.

Auto Repair & Dealerships

Purchase parts inventory, upgrade lifts and diagnostic tools, or expand service bays.

Salons & Spas

Renovate spaces, add treatment rooms, purchase new equipment, or fund marketing campaigns.

Medical & Dental Practices

Upgrade patient care equipment, expand office space, or cover staffing during growth.

E-Commerce Businesses

Fund inventory purchases, marketing spend, or technology upgrades with capital that flexes with your online sales.

MCA: Advantages & Considerations

Advantages

  • Fastest funding option (24-48 hours)
  • Lowest credit score requirements (500+)
  • No collateral or personal guarantee (some programs)
  • Payments flex with your revenue
  • No fixed monthly payment stress
  • Short 4-month business history requirement
  • Simple application — no tax returns
  • Doesn't appear as traditional debt

Considerations

  • Higher cost of capital than traditional loans
  • Daily/weekly repayments from sales
  • Factor rates (not APR) can be harder to compare
  • May not be ideal for businesses with low card volume
  • Doesn't build business credit history
  • Short repayment windows (4-18 months)
  • Stacking multiple MCAs increases risk

MCA Frequently Asked Questions

Is a merchant cash advance a loan?

No. An MCA is technically a purchase of your future receivables. This distinction means MCAs are not subject to traditional lending regulations and usury laws. The funder purchases a portion of your future sales at a discount.

What's a holdback percentage?

The holdback is the percentage of your daily credit/debit card sales that's automatically withheld for repayment. If your holdback is 12% and you process $3,000 in card sales, $360 goes toward your MCA balance.

What happens during slow business periods?

Your daily payment decreases proportionally. If sales drop 50%, your MCA payment drops 50% too. This is the key advantage of an MCA — it's designed to accommodate natural business fluctuations.

Can I get an MCA if I've been declined for a bank loan?

Absolutely. MCAs have the most flexible qualification requirements of any business funding product. Many of our MCA clients have been previously declined by banks. Credit scores as low as 500 may qualify.

How is the advance amount determined?

Your advance amount is typically based on your average monthly card processing volume and bank deposits. Most businesses qualify for 1-1.5x their average monthly revenue.

Get Capital That Works With Your Business

Apply in 5 minutes. Get funded in 24 hours. Payments flex with your sales.

Apply for MCA

A merchant cash advance is not a loan. It is a purchase of future receivables at a discount. Advance amounts, factor rates, and holdback percentages vary by applicant. TrustScore Business Funding connects businesses with MCA providers and is not a direct funder. Examples are illustrative only. TrustScore, LLC, 1342 NM 333, Tijeras, NM 87059.