A lump sum paid now in exchange for a set amount of future sales, repaid through daily or weekly debits until the agreed payback is reached.
Check my optionsMerchant cash advance
A merchant cash advance (MCA) is a lump sum of cash given to a business in exchange for a portion of its future sales. Instead of borrowing and paying interest, the business sells a fixed amount of future receivables at a discount and remits them over time.
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.
Net cash, total payback and payment shown before you sign.
Your file goes to funders that fit it, so offers can be compared.
Approved files are usually funded the next business day.
A person reviews your revenue, time in business and bank activity, often within hours.
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.
The key terms are worth knowing. The purchase price is the cash the business receives. The purchased amount is the total of future receivables the funder buys, typically the purchase price multiplied by a factor rate such as 1.25 or 1.40. The specified percentage, sometimes called the holdback, is the share of receivables used to calculate remittances.
Remittances are how the funder collects. Some agreements take a percentage of daily card settlements directly from the processor; many now use a fixed daily or weekly ACH debit from the business bank account, estimated from the specified percentage and average revenue. True MCAs usually include a reconciliation clause, allowing the business to request that remittances be adjusted to actual receivables if sales decline.
An MCA is typically not secured by specific property. Funders usually file a UCC-1 financing statement on receivables and ask the owner to sign a performance guarantee. Read the agreement for default definitions, renewal terms and any confession of judgment clause, which some states restrict.
Underwriting focuses on bank statements: average deposits, number of deposits, daily balances, negative days and existing obligations. Credit matters less than for a loan; MFE considers scores from 500. Decisions can come the same day and funding the next business day.
MCAs fit short-term, high-return needs for businesses with steady revenue. They cost more than bank loans and should be compared on net cash received and total purchased amount.
Some agreements, including some offered through MFE, provide discounts for early delivery of the purchased amount at 30, 60 or 90 days.
Here is an MCA described with its formal terms. Illustrative numbers.
| Amount funded | $60,000 |
| Factor rate | 1.38 |
| Total payback (amount × factor) | $82,800 |
| Fees deducted at funding (3%) | $1,800 |
| Net cash you receive | $58,200 |
| Weekly payment over 40 weeks | $2,070 |
| Same total as daily debits (~200 business days) | $414/day |
Illustrative numbers only. Your offer depends on your file; always compare net cash and total payback in writing.
| Purchase price | Cash the business receives |
| Factor rate | Multiplier that sets the purchased amount |
| Purchased amount | Total receivables sold |
| Specified percentage | Share of receivables used for remittances |
| Reconciliation | Adjustment to actual receivables |
Good fit:
Probably not yet:
Advance pricing is quoted in several ways, and the same deal can sound cheap or expensive depending on which one you hear. Translate every quote into the same four numbers before comparing.
| If you hear… | It means… | On a $30,000 advance |
|---|---|---|
| “Factor 1.32” | You repay 1.32 times the advance | $39,600 purchased amount |
| “32%” or “32 cents on the dollar” | The same factor, written as a percentage | $9,600 cost |
| “Holdback of 12%” | That share of card receipts goes to the funder until the purchased amount is delivered | Depends on sales volume |
| “Fixed ACH of $330 a day” | A set debit each business day, with reconciliation if sales drop | About 120 business days |
Illustrative figures only.
A holdback (split) takes a percentage of card settlements before they reach your account, so slow days automatically cost less. A fixed ACH debit pulls the same amount whatever happened that day; if sales fall, you request a reconciliation to adjust it. Most advances today use fixed debits because they work for businesses that are not card-heavy.
Some companies advertise terms as short as 30 days. A low factor collected over a few weeks can still produce a daily debit that empties the account. A $30,000 advance at 1.15 collected over 21 business days is about $1,643 a day; the same advance at 1.32 over six months is about $314. Always ask for the debit amount, not just the factor.
Many programs let you renew once about half the purchased amount is delivered. Before accepting, subtract the payoff of the remaining balance and every fee from the new advance to see the net new cash. The warning-signs guide walks through a full renewal example.
A lump sum in exchange for a fixed amount of future receivables, remitted over time.
It is generally structured as a purchase of receivables, not a loan.
A multiplier, such as 1.30, that sets the total purchased amount.
A percentage of card sales or fixed ACH debits.
An adjustment of remittances to actual receivables if sales decline.
Options begin at 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