If your business is running short of cash, merchant cash advance companies can be a quick source of funding. A merchant cash advance (MCA) is an advance provided against your future credit card sales.

MCAs are easy to qualify for, but they don’t report to credit bureaus. MCA providers also charge very high fees, so they should only be used for emergencies. Be sure to review our top recommendations and choose a reputable lender.

Top 5 Merchant Cash Advance Companies

We selected our top five recommendations for merchant cash advance companies based on a number of criteria:

  • Ease of application and funding speed
  • Flexibility of repayment
  • Qualification requirements
  • Customer ratings
LendioCrediblySunwise CapitalFora FinancialGoKapital
Funding Amount$5,000 to $200,000Up to $600,000$10,000 to $2 million$5,000 to $1.5 million$20,000 to $5 million
Factor RateStarting from 1.08Starting from 1.11Starting from 1.151.15 to 1.35Starting from 1.20
Repayment Term3-36 months3-24 monthsNAUp to 16 months3-18 months
Minimum Credit Score500500500NANA
  • Funding Amount: $5,000 to $200,000
  • Factor Rate: Starting from 1.08
  • Repayment Term: 3-36 months
  • Minimum Credit Score: 500

Lendio’s business cash advance has easy qualification requirements and competitive terms, which makes it a good choice for businesses.

Lendio is a broker with a large network of lenders, making it easy to get access to the best terms and rates. Like any other merchant cash advance, payments are based on a percentage of credit card sales and must be made daily.

  • Funding Amount: Up to $600,000
  • Factor Rate: Starting from 1.11
  • Repayment Term: 3-24 months
  • Minimum Credit Score: 500

Credibly allows you to get prequalified and get approved within hours. It also offers same-day funding, making it easy for businesses to get quick access to cash.

While the factor rate is quite low compared to other merchant cash advance companies, you’ll also pay a monthly administrative fee and a one-time underwriting fee.

  • Funding Amount: $10,000 to $2 million
  • Factor Rate: Starting from 1.15
  • Repayment Term: NA
  • Minimum Credit Score: 500

Sunwise Capital is a good choice if you need fast funding within a few hours of sending an online application. The company also offers flexible repayment terms, such as monthly repayments instead of daily for qualified businesses.

Proceeds from the MCA can be used for a variety of purposes, such as renovations, inventory, equipment, and building upgrades.

  • Funding Amount: $5,000 to $1.5 million
  • Factor Rate: 1.15 to 1.35
  • Repayment Term: Up to 16 months
  • Minimum Credit Score: NA

Fora Financial offers large funding amounts and the ability to borrow additional funds after you’ve paid off 60% of the amount you borrowed. The company also offers prepayment discounts.

This merchant cash advance company is also a good small business financing choice for startups since it offers funding after as little as six months' time in business.

  • Funding Amount: $20,000 to $5 million
  • Factor Rate: Starting from 1.20
  • Repayment Term: 3-18 months
  • Minimum Credit Score: NA

If you can’t get approved for funding with any other lenders, GoKapital may be a good choice to consider. The company offers financing for all industries and has lenient qualification requirements.

Funding can be slightly slower compared to other lenders, but the terms and rates are competitive. You’ll also have the flexibility of making weekly payments instead of daily.

Things To Consider When Borrowing a Merchant Cash Advance

Since repayments for merchant cash advances come from future debit and credit card sales, it’s important to understand the terms of the advance. Before you consider borrowing an MCA, pay special attention to the following things:

  • Check the merchant cash advance company’s minimum revenue and credit score requirements to see if you qualify. Some lenders may accept a personal credit score of as low as 500.
  • Most merchant cash advance providers charge a factor rate. When translated to an APR, this rate can be quite expensive, so compare your funding options carefully.
  • Repayment schedules for MCAs are usually daily or weekly. This can be quite aggressive and can impact your business’s cash flow. Consider business term loan options that offer flexible monthly payments instead.
  • You’ll also want to check if you can afford the percentage of repayment, which is applied toward paying off the amount you borrowed plus fees.
  • Repayment periods for MCAs vary greatly from 3 months to 36 months, depending on the lender. Compare different term lengths and make sure you’re comfortable with the repayment amount.

How To Choose a Merchant Cash Advance Company

It's important to research and compare several merchant cash advance companies before you decide which one is right for you. Some companies may have confusing contracts, and the cost of borrowing can be high, leading to a cycle of business debt that’s difficult to break.  Consider these factors when comparing your options.

Maximum Funding Amounts

Check the company’s maximum funding limit to ensure it’s suitable for your needs. Each lender is different, and funding amounts can vary from $5,000 to $5 million, depending on a number of factors.

Borrowing Costs

Merchant cash advance companies charge factor rates instead of simple interest rates or percentage rates. This can make it difficult to understand the true borrowing costs. You can use an MCA calculator to translate these rates into an annual percentage rate (APR). Be sure to check if the company charges any additional fees and include them in your calculations.

Repayment Terms

Some merchant cash advance companies may require daily or weekly payments. Others may allow you to make monthly repayments. The method of payment also varies with lenders since some providers make automatic withdrawals from your business bank account while others will collect a percentage of your daily credit and debit card sales.

Eligibility Requirements

Merchant cash advance companies have lenient eligibility requirements compared to traditional business loans. In most cases, they’ll review your annual revenue, time in business, and personal credit score.

However, many lenders are willing to work with new businesses and those facing credit challenges as long as they meet their credit and debit card sales requirements.

Funding Speed

Check the lender’s application process and funding speed to ensure you’ll get the money when you need it. In most cases, applications are quite simple, and documentation is minimal. You can usually apply online and get money in your checking account within one business day.

Lender Reviews

A good merchant cash advance company is transparent about its fees and how they work. Check the company's online reviews and ensure they’re easy to get in touch with if you have any questions.

We also recommend thoroughly reading the MCA agreement before you sign it. The agreement should clearly state repayment and fee information as well as terms and conditions. Reach out to other small business owners to ask for recommendations of merchant cash advance companies.

Review the Terms Carefully Before Working With a Merchant Cash Advance Company

A merchant cash advance company can help provide access to working capital for your business needs. However, it’s important to know that MCAs are very expensive compared to most other types of financing options, even if you have bad credit.

Make sure you understand the true cost of borrowing and have a plan in place to repay what you borrow as soon as possible. If you aren’t careful, your business can get trapped in a debt cycle. When looking for a merchant cash advance company, choose one that’s transparent about fees and costs so you can plan for repayment.