Fast Capital Based on Your Future Sales — No Fixed Monthly Payments
A merchant cash advance (MCA) provides upfront capital in exchange for a percentage of your future card sales. Repayments happen automatically as revenue comes in — meaning slower months mean smaller payments. Approvd connects you with MCA providers offering the most competitive factor rates in our network.
$5,000 – $1,000,000
Same Day – 24 Hours
Repayment Terms
3 – 18 Months
Factor Rate From
1.10x
Minimum Requirements
Overview
What Is Merchant Cash Advance?
A merchant cash advance is technically not a loan — it's a purchase of your future receivables. A provider advances you a lump sum of capital today, and you repay it by giving them a fixed percentage of your daily or weekly credit card and debit card sales (called the "holdback" or "retrieval rate") until the full amount plus a fee (the "factor rate") is repaid.
This structure has important practical implications. Because repayments are tied to your revenue rather than a fixed monthly amount, your payment naturally decreases when business is slow and increases when business is good. There are no late fees or penalty payments for slow months — the process is automatic.
MCAs are the fastest form of business financing available: many are approved and funded within hours of application. They require minimal documentation (typically 3–4 months of bank statements) and have the most accessible credit requirements of any business financing product — some providers approve businesses with FICO scores as low as 500.
The trade-off is cost: MCAs expressed as factor rates (typically 1.10–1.50) are equivalent to APRs of 40–150%+ when annualized. They are most appropriate for: businesses that need capital immediately, cannot qualify for traditional products, have very short-term needs (under 6 months), or have very high gross margins that can absorb the cost. Approvd advisors will always show you the full cost comparison so you can make an informed decision.
Why Approvd?
No impact to credit score
Simple Process
How Merchant Cash Advance Works
Apply in Minutes
Share 3–4 months of bank statements. No hard credit pull. No extensive financial documents. Approval often within hours.
Receive Your Advance
Funds deposited to your business account as fast as the same business day. The simplest, fastest funding process available.
Repay Automatically
A fixed daily or weekly percentage of your card transactions is automatically remitted to the provider. No manual payments, no due dates, no late fees.
Renew When Ready
Once 50–70% of your advance is repaid, many providers offer renewal. Your Approvd advisor helps you time renewals optimally.
Key Advantages
Benefits of Merchant Cash Advance Through Approvd
Fastest Funding Available
Same-day or next-day funding is standard. If you need capital today, an MCA is the fastest path available.
No Fixed Monthly Payment
Repayments flex with your revenue. Slow month? Lower repayment. Strong month? Repay faster. No fixed obligation.
Most Accessible Approval
Credit scores from 500+, as little as 3 months in business, and minimal paperwork required.
No Collateral Required
MCAs are unsecured. No business or personal assets need to be pledged.
Common Uses
What Can You Use Merchant Cash Advance For?
Businesses across industries use merchant cash advance through Approvd to fund growth, manage cash flow, and seize opportunities.
- Emergency capital needed within 24–48 hours
- Businesses with seasonal revenue patterns
- Restaurants, retail, and high-volume card transaction businesses
- Businesses that don't qualify for traditional products
- Bridge financing while waiting for a traditional loan to process
- Short-term opportunities requiring fast capital deployment
Ready to Get Started?
Apply in 5 minutes. Get matched with real offers from 75+ lenders. No impact to your credit score.
Or call (516) 262-5269Common Questions
Merchant Cash Advance FAQ
Is a merchant cash advance a loan?
Technically, no — it's a purchase of future receivables, not a loan. This distinction means MCAs are not subject to state usury laws that cap interest rates on loans, which is why their effective cost can be higher than traditional loan products.
What is a factor rate and how do I calculate the total cost?
A factor rate (e.g., 1.35) is multiplied by your advance amount to determine total repayment. If you receive $100,000 at a factor rate of 1.35, you repay $135,000 total — a cost of $35,000. The actual APR depends on how quickly you repay.
What is the holdback/retrieval rate?
The holdback is the percentage of daily card sales remitted to the MCA provider — typically 10–20%. A higher holdback means you repay faster. Your Approvd advisor will explain how different holdback rates affect your day-to-day cash flow.
Can I pay off an MCA early to save money?
Unlike traditional loans, most MCAs don't offer early payoff discounts — you owe the full factor rate regardless of how quickly you repay. Some providers offer negotiated early payoff terms; your advisor will clarify this during the comparison process.
When is an MCA better than other products?
MCAs make the most sense when you need capital immediately, have been declined for traditional products, have high gross margins, or have a very specific short-term use case. For longer-term needs, revenue-based financing or term loans are typically more cost-effective.
Other Financing Solutions
Not sure if this is the right fit? Explore our other products.
Important Disclosure
Approvd is a loan marketplace and does not make lending decisions or issue loans directly. All loan products, rates, terms, amounts, and approval decisions are determined solely by the individual lenders in our network. Loan availability and terms vary by lender, applicant qualifications, state regulations, and other factors.
Applying through Approvd does not guarantee loan approval or any specific loan amount, rate, or term. APR and cost of capital vary widely based on loan type, lender, credit profile, revenue, time in business, and other underwriting criteria. Representative APR examples are illustrative only and do not constitute an offer or guarantee of credit.
Business loans involve risk. Carefully review all loan documents and understand your repayment obligations before accepting any offer. If you have questions about a specific loan product, consult the lender directly or seek independent financial or legal advice.
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