How a merchant cash advance works
A merchant cash advance gives your business money now in exchange for a share of future sales. Here's exactly how it works, what it costs, and when it makes sense.
The short version
A funder buys a portion of your business's future sales at a discount. You get the money up front, usually in a lump sum, and the funder collects the agreed total over time through small automatic payments from your business account.
Because the funder is buying future receivables, a merchant cash advance is not a loan. That's also why funders focus on your sales and deposits instead of your credit score.
How you pay it back
Most advances are repaid through fixed daily or weekly payments pulled from your business bank account. Some are paid as a percentage of your daily card sales, so payments shrink on slow days and grow on busy ones.
The total you repay is set up front. You'll see the funded amount, the total payback, and the payment schedule before you sign anything.
What it costs
The cost is usually shown as a factor rate rather than an interest rate. A factor rate of 1.30 means every $10,000 you receive costs $13,000 to repay. Factor rates commonly fall somewhere around 1.15 to 1.5 depending on the business and the term, and terms commonly run 3 to 12 months.
Honest truth: that's usually more expensive than a bank or SBA loan. If you can get bank financing, it's worth trying first. Revenue-based funding is for when you need speed, or the bank said no. Try our factor rate calculator to see the numbers for your situation.
Who it's a good fit for
Businesses with money coming in every month, typically about 4+ months in business and around $10,000+ a month in deposits. Sales don't need to be growing; down or seasonal months are fine. It's built for owners who need funding quickly, or who were turned down because of credit or because the bank wanted years of tax returns.
How to apply
With us, it's one short application and your last 4 months of business bank statements. We send your file to the funders that fit your business, line up the offers side by side, and you choose the best one, or none. We never charge you a fee; funders pay us when a deal closes.
General information only, not financial or legal advice. Every funder sets its own terms; your offer shows the exact numbers before you sign.