MCA stands for merchant cash advance: funding repaid from future sales at a fixed total cost expressed as a factor rate.
Check my optionsMerchant cash advance
MCA stands for merchant cash advance. It is a form of revenue-based funding where a business receives cash now in exchange for a share of future receivables. It is easiest to understand by comparing it with the products it is most often confused with.
Amount to request
$85,000.00
Funding range$25K to $5M
*Sample amounts shown. Your actual offer depends on your business and is reviewed before approval.
Your file goes to funders that fit it, so offers can be compared.
Approved files are usually funded the next business day.
Net cash, total payback and payment shown before you sign.
You can apply at 500; stronger credit opens more products.
Fast decisions. Applying takes about 5 minutes.
A short application. A soft credit pull to start.
We review revenue, time in business and bank activity, not just a credit score.
You see the amount, the schedule and the full repayment amount before you sign.
Funding in as little as 24 hours for qualified businesses.
MCA vs. term loan. A term loan is debt: you borrow principal, pay interest and make scheduled installments regardless of sales. An MCA is generally structured as a sale of receivables with a fixed total set by a factor rate, often with reconciliation if sales decline. Loans usually cost less; MCAs are usually faster and more accessible.
MCA vs. line of credit. A line of credit is revolving: you draw, repay and draw again, paying only on the balance used. An MCA is a one-time lump sum with a fixed total to remit; additional funding comes through a renewal or a new agreement rather than redrawing.
MCA vs. invoice factoring. Factoring sells specific invoices owed by your commercial customers; approval depends largely on those customers. An MCA sells a share of general future receivables, including card and bank deposits, and approval depends mainly on your own deposit history. Factoring suits B2B businesses; MCAs suit businesses with steady daily or weekly sales of any kind.
Who uses MCAs? Restaurants, retailers, contractors, trucking companies, salons, medical and dental practices and many service businesses use them for inventory, repairs, payroll gaps and short growth opportunities, especially when banks are slow or say no.
Common myths: MCAs are not unregulated everywhere, since several states now require commercial financing disclosures; they are not always daily, since weekly remittances are common; and they are not only for bad credit, though they do accept scores from 500.
Through MFE, MCA offers can be compared with lines of credit and second-position options from one application.
Here is an MCA offer to compare against a loan or line. Illustrative numbers.
| Amount funded | $40,000 |
| Factor rate | 1.40 |
| Total payback (amount × factor) | $56,000 |
| Fees deducted at funding (3%) | $1,200 |
| Net cash you receive | $38,800 |
| Weekly payment over 40 weeks | $1,400 |
| Same total as daily debits (~200 business days) | $280/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| Term loan | Debt with interest, fixed installments |
| Line of credit | Revolving, pay on what you draw |
| Invoice factoring | Sells specific B2B invoices |
| MCA | Sells share of future receivables, fixed total |
| Typical MCA users | Restaurants, retail, contractors, trucking, services |
Good fit:
Probably not yet:
Merchant cash advance.
It is generally a purchase of receivables with a fixed total, not debt with interest.
Factoring sells specific invoices; an MCA sells a share of general future receivables.
No, weekly remittances are common.
Several states require commercial financing disclosures or registration.
No, though they consider scores from 500.
Example uses for illustration only.
Before you apply:
One secure application. A soft credit pull to start. No obligation to accept an offer.
Apply for Funding