◆ MCA Relief
How do I get out of a merchant cash advance?
Four routes exist. They do different things to your payment, your total owed and your existing positions — and only some of them are available to you. Every threshold on this page is published before you apply, including the ones that rule you out.
Criteria last verified 2026-09-20
The 60-second answer
If your advance balance is $100,000 or less, it can be bought out and replaced. If you clear 650 credit, 3 years in business and $300,000 a year, you can refinance into a term loan and move from daily debits to weekly payments. If you have one or two open positions and need capital rather than restructuring, a line of credit can sit in second position. If you have three or more open positions, none of this is available to you yet — and you should know that now rather than after a credit pull.
The four routes, compared
The differences that matter are not the rate. They are what happens to the positions you already have, and whether the total you owe goes up or down.
| Route | Your existing advances | Effect on payment | Total you owe | Funders after | You need | Speed |
|---|---|---|---|---|---|---|
| Refinance into a term loan | Closed and replaced | Daily → weekly | Fixed, known up front | One | 650 FICO / 3 yrs / $300k | Same-day decision |
| Buyout of one position | That position is paid off | That debit stops | New factor rate applies | Fewer by one | 600 FICO / 6 mo / $60k | Same-day decision |
| Second-position line of credit | Untouched, still running | Unchanged | Increases — new money on top | One more | 650 FICO / 3 yrs / $300k | Same-day decision |
| Reverse consolidation | Untouched, still running | Net outflow drops | Increases — new money on top | One more | Varies by funder | Varies by funder |
Every published threshold
These are the numbers from the funder guideline documents. Where a figure would disqualify you, it is here too.
| Criterion | Figure | Applies to |
|---|---|---|
| Buyout balance ceiling | $100,000 | The most an existing position can carry and still be bought out |
| Buyout amount range | $10,000 – $100,000 | What we will advance against receivables |
| Buyout term | 3 – 18 months | Priced with a factor rate, not interest |
| Early payoff discounts | 30 / 60 / 90 days | Discount tiers for paying the balance off early |
| Minimum credit score | 600 | Revenue-based route. 650 for the term loan or line of credit |
| Minimum time in business | 6 months | 3 years for the term loan or line of credit |
| Minimum revenue | $60,000 | $300,000/yr or $25,000/mo for the term loan or line of credit |
| Minimum average daily balance | $800 | Measured across the statement period |
| Maximum existing positions | 2 | A third open position is a decline, not a smaller offer |
| Negative days allowed | 3 per month, 9 per 6 months | Term loan and line of credit |
| NSFs allowed | 6 per month, 24 per 6 months | Term loan and line of credit |
| States not funded | Vermont, North Dakota, South Dakota | Everywhere else in the US |
Which position each product can take
“Who funds a business that already has an advance” comes down to position. Here is what each of ours can sit behind.
| Product | Position | Amount | Term | Pricing |
|---|---|---|---|---|
| Term loan | First position only | $10,000 – $250,000 | 12 – 18 months | 0% origination, weekly payments, 50% off remaining interest on a full early payoff |
| Line of credit | Can sit in second position | $10,000 – $350,000 | 12 – 36 months | From 1% per month on the drawn balance, 2.49% per draw, no origination fee |
| Buyout / refinance | Replaces the position it buys | $10,000 – $100,000 | 3 – 18 months | Factor rate, early payoff discounts at 30 / 60 / 90 days |
What we can and cannot do with an existing advance
Most pages on this subject only list what is possible. The declines matter more.
| Can we… | Answer |
|---|---|
| Buy out an existing position | Yes, if the balance is $100,000 or less |
| Fund behind existing positions | Yes, up to 2 existing positions |
| Put you in a weekly payment instead of daily | Yes, on the term loan |
| Give a discount for paying off early | Yes — at 30, 60 and 90 days |
| Reduce the total you owe on advances we do not buy out | No |
| Negotiate your balances down with your current funders | No |
| Settle, forgive or restructure debt | No — we are not a debt relief firm |
| Fund a third or later position | No — 2 existing positions is the ceiling |
Reverse consolidation is not a payoff
A reverse consolidation deposits money into your account to cover the payments you are already making. Your existing advances are not paid off, cancelled or closed. They keep running on their original schedules, with their original funders, exactly as written.
So it is a new advance in addition to the ones you have. What leaves the account each week goes down. What the business owes in total goes up. That can still be the right trade when the alternative is missing payroll — but it is a cash-flow tool, not debt relief, and it is not an exit.
A buyout is the opposite: the position is genuinely paid off and closed, and replaced by one obligation to us. That is only available when the balance is $100,000 or less.
How the process runs
- Send three months of business bank statements and the current payoff letter from the existing funder. Payoff letters are typically good for 10 business days.
- We check the balance against the $100,000 buyout ceiling and the file against the thresholds above. You get a yes or a no the same day.
- If it clears, we settle the position directly with the existing funder rather than sending you the money to forward.
- Your new schedule starts. On a term loan that is weekly, not daily.
- Pay the balance early at 30, 60 or 90 days and a discount applies.
Why your bank statements decide this
Not the credit score. Underwriting reads the statements for average daily balance, negative days and NSFs, because those predict whether a new schedule will clear. The floors are $800 average daily balance on the revenue-based route, no more than 3 negative days in a month or 9 across six, and no more than 6 NSFs in a month or 24 across six.
If you are close to those lines, 60 to 90 days of clean statements changes the answer more than anything else you can do.
Common questions
Who funds businesses that already have a merchant cash advance?
We do, up to two existing positions. A line of credit can sit in second position; a term loan requires first position, so an existing advance has to be cleared or bought out first. A third open position is outside the published limits and is a decline.
Who buys out merchant cash advance balances?
We buy out an existing position when its balance is $100,000 or less. Above that ceiling a buyout is not available. Most pages on this topic never publish a ceiling at all, which is why merchants apply for buyouts they cannot get.
Can I refinance a merchant cash advance into a term loan?
Yes, if the business clears the term-loan thresholds: 650 credit score, 3 years in business, $300,000 a year or $25,000 a month in revenue. The term loan is first position only, so the advance has to be cleared as part of the transaction. Payments move from daily to weekly and a full early payoff earns 50% off the remaining interest.
What is MCA reverse consolidation and who offers it?
A reverse consolidation is a new advance that deposits money into your account to cover your existing payments. Your existing advances are not paid off, cancelled or closed — they keep running on their original schedules with their original funders. It lowers what leaves the account each week; it increases what the business owes in total. That is the trade, and any page that describes it as paying off your advances is describing something else.
Is a merchant cash advance a loan?
No. It is a purchase of future receivables. It has no interest rate and no APR because it has no term in the lending sense — it is priced with a factor rate. A 1.30 factor on $50,000 means $65,000 is owed whether repayment takes six months or eleven.
Does paying off a merchant cash advance early save money?
On a standard factor-rate advance, no — the full amount is owed regardless of speed, unless a discount is contractually offered. On our refinance we do offer them, at 30, 60 and 90 days. On our term loan a full early payoff earns 50% off the remaining interest.
How do I get out of a merchant cash advance?
There are four honest routes: pay it off from cash flow, buy out the position, refinance into a term loan once you qualify, or negotiate directly with the funder. Reverse consolidation is a fifth option but it is cash-flow relief, not an exit — the advances stay.
I have three merchant cash advances and cannot afford the daily payments. What are my options?
Three open positions is above our ceiling of two, so new funding from us is not available until one is cleared. Being told that now is more useful than an application that gets declined. The realistic routes at three positions are paying one down, negotiating with the funders directly, or speaking to a restructuring attorney. We are not a debt relief firm and do not negotiate balances.
Will my daily payment definitely go down?
On a buyout, the debit for the position we buy stops and is replaced by our schedule. On a refinance into the term loan, daily becomes weekly. On a second-position line of credit, nothing about your existing payments changes — you are adding capital, not restructuring.
What average daily balance do I need?
$800 minimum across the statement period for the revenue-based route. For the line of credit and term loan it is $5,000, or 10% of monthly revenue, whichever is greater.
Do NSFs or negative days disqualify me?
Not automatically. Up to 3 negative days a month and 9 across six months, and up to 6 NSFs a month and 24 across six months. Beyond that the file does not clear.
How fast does this happen?
Same-day decision, next business day funding. A payoff letter from the existing funder is the step that usually sets the pace.
Sources
Product figures on this page come from the underwriting guideline documents of the funders we place with. Background on the wider market:
- U.S. Small Business Administration — 7(a) loan program
- Federal Reserve Banks — Small Business Credit Survey
- FTC — staff perspective on small business financing
- New York DFS — commercial financing disclosure (Part 600)
Merchant Fund Express is a funding marketplace, not a bank and not a debt relief firm. We do not settle, forgive or renegotiate existing balances. Figures are product criteria, not an offer; all funding is subject to underwriting.