Rise Business Funding

Merchant Cash Advance

A merchant cash advance gives you a lump sum of capital today based on your future revenue. No fixed monthly payments. No collateral. Repayment flexes with your daily sales, so you pay more when business is strong and less when it slows down. Rise connects you with MCA funders in our network, with a decision within 2 hours of complete documents and capital deposited within 24 hours. Whether you need $5,000 to bridge a gap or $500,000 to seize an opportunity, a merchant cash advance gets you funded fast when traditional lenders say no.

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What Is a Merchant Cash Advance?

A merchant cash advance (MCA) is not a loan. It is a purchase of your future receivables at a discount. A funding company advances you a lump sum of capital, and in return, you agree to repay a set amount from your daily or weekly revenue. Because repayment is tied to your sales, your payments adjust automatically: higher when business is strong and lower during slower periods.

MCAs are one of the most accessible funding options available. There is no collateral requirement, no fixed monthly payment, and approval is based primarily on your revenue history rather than your credit score. This makes an MCA a strong option for businesses that may not qualify for a traditional business line of credit or long-term loan.

Unlike a term loan where you receive a fixed amount and make scheduled payments, an MCA adjusts to your business rhythm. Use our business loan calculator to estimate your total repayment cost before you apply.

Requirements to Qualify for a Merchant Cash Advance

Personal FICO Score

No minimum (500+ preferred)

MCAs are one of the most accessible funding options. Credit score is not the primary factor. Revenue performance matters far more than credit history.

Monthly Revenue

$25,000+

Your monthly revenue is the most important qualification factor. MCA providers evaluate your bank deposits to determine the advance amount you can receive and your ability to handle daily repayments.

Time in Business

3+ months

MCAs accept businesses with as little as 3 months of operating history, so newer businesses with strong revenue can qualify.

Bank Account

Business account required

Used to verify revenue patterns and manage automated daily or weekly repayment deductions. Personal accounts are not accepted.

Not sure if you qualify? MCAs are designed for businesses that need capital fast, even when traditional lenders say no. Rise evaluates your full revenue picture, not just a credit score. Businesses across all industries are welcome, including restaurants managing seasonal swings and retailers stocking inventory for peak seasons.

How a Merchant Cash Advance Works

Revenue Split

A fixed percentage of your daily credit card or total revenue is automatically deducted as repayment. This percentage, called the holdback rate, typically ranges from 5% to 20% of daily sales and is agreed upon before you accept the advance.

Daily or Weekly Remittance

Payments are collected automatically from your merchant account or bank deposits on a daily or weekly basis. There are no manual invoices, no checks to write, and no payment dates to remember. The process runs in the background while you focus on operations.

Payments Flex With Your Sales

When sales dip, your repayment amount decreases proportionally. When revenue increases, you pay the advance off faster. This built-in flexibility means your cash flow is never squeezed by a rigid payment schedule that ignores your actual business performance.

No Fixed End Date

There is no set repayment term like a traditional loan. Your advance is paid off based on the pace of your revenue, not a calendar deadline. Most MCAs are fully repaid within 4 to 18 months depending on your daily sales volume.

See If You Qualify in Minutes

Find out how much capital your business can access based on your revenue. The application takes less than 5 minutes and won't impact your credit score.

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Pros & Cons of a Merchant Cash Advance

Pros

Fastest Access to Capital

Get funded in as little as 24 hours with minimal paperwork. Most MCA applications are reviewed within hours, making it the fastest funding option available for small businesses.

No Fixed Monthly Payments

Repayment adjusts automatically with your revenue. You pay more when sales are strong and less when they slow down. This revenue-based structure protects your cash flow during unpredictable periods.

No Collateral Required

MCAs are unsecured. You do not need to put up property, equipment, inventory, or other assets to qualify. Your future revenue is the only consideration.

Minimal Credit Requirements

Approval is based primarily on your daily sales volume and revenue consistency, not your personal credit score. Businesses with FICO scores below 500 can still qualify if their revenue is strong.

Simple Application Process

No tax returns, no financial statements, no business plans. Most MCA applications require only recent bank statements and basic business information, and the entire process can be completed online in minutes.

Cons

Higher Cost Than Traditional Financing

MCAs carry factor rates typically ranging from 1.2 to 1.5, making them more expensive than a business line of credit, SBA loan, or traditional term loan. The convenience and speed come at a premium.

Daily or Weekly Deductions Impact Cash Flow

Automatic daily or weekly deductions from your revenue can put pressure on cash flow during slower periods. Businesses with thin margins should carefully evaluate the holdback percentage before committing.

Not Ideal for Long-Term Capital Needs

MCAs are designed for short-term funding needs. If you need capital for a multi-year investment like real estate or major expansion, a long-term business loan offers a better structure with lower total cost.

Alternatives to a Merchant Cash Advance

Short-Term Business Loan

  • Fixed repayment schedule with predictable daily, weekly, or monthly payments
  • Lower total cost than MCAs for businesses that qualify
  • Lump sum funding for one-time investments or purchases
  • Requires slightly stronger credit and more documentation
  • Less flexible; payments stay the same regardless of your revenue

Business Line of Credit

  • Draw funds only when you need them, pay interest on what you use
  • Revolving credit replenishes as you repay for ongoing access
  • Great for managing recurring cash flow gaps and seasonal needs
  • May require a longer operating history and higher credit score
  • Lower cost over time but less immediate than an MCA

Revenue-Based Financing

  • Repayments scale with your monthly revenue, similar to an MCA
  • Typically structured as a loan with a fixed repayment cap
  • No equity dilution, so you keep full ownership of your business
  • Often offers longer repayment windows than a merchant cash advance
  • Good fit for businesses with consistent but growing revenue

Frequently Asked Questions About

Merchant Cash Advances

Is a merchant cash advance a loan?

No. A merchant cash advance is not a loan. It is a purchase of your future receivables. You receive a lump sum upfront and repay it through a percentage of your daily or weekly sales. Because it is not technically a loan, MCAs are not subject to the same regulations as traditional lending products and use factor rates instead of interest rates.

How much can I get with a merchant cash advance?

MCA amounts typically range from $5,000 to $500,000, depending on your monthly revenue and business history. The advance amount is usually based on a multiple of your average monthly sales. The stronger your revenue, the more you can qualify for.

How fast can I receive MCA funding?

Most MCA applications are reviewed within hours. Once approved, funds can be deposited into your business bank account as soon as the same business day or within 24 hours, making it one of the fastest funding options available for small businesses.

What is a factor rate?

A factor rate is the cost of your advance expressed as a decimal, typically 1.2 to 1.5. If you receive a $10,000 advance with a 1.3 factor rate, you will repay $13,000 total. Factor rates are different from interest rates. They represent a fixed total repayment amount rather than a compounding cost. Use our business loan calculator to estimate your total cost.

Do I need good credit to qualify for an MCA?

No. MCA providers focus primarily on your business revenue rather than your personal credit score. While a credit check may be performed, most providers are more interested in your daily sales volume and overall business performance. Businesses with credit scores below 500 can qualify.

What is a holdback rate?

The holdback rate is the percentage of your daily sales that is automatically deducted for repayment. Holdback rates typically range from 5% to 20%. A lower holdback rate means smaller daily deductions but a longer repayment period. Your holdback rate is set before you accept the advance.

Can I get a second MCA before paying off the first?

In some cases, yes. Some MCA providers offer stacking or renewals once you have repaid a certain percentage of your current advance, typically 50% to 70%. However, taking on multiple advances simultaneously can put significant pressure on your cash flow, so evaluate the impact carefully.

What documents do I need to apply for an MCA?

Most MCA applications require only 3 to 6 months of recent bank statements, a valid government-issued ID, and basic business information (EIN, business name, ownership details). No tax returns, financial statements, or business plans are typically required.

What can I use MCA funds for?

You can use MCA funds for virtually any business purpose: inventory, payroll, marketing campaigns, equipment repairs, rent, tax payments, emergency expenses, or bridging cash flow gaps. There are no restrictions on how you deploy the capital.

How is an MCA different from a short-term loan?

A short-term business loan has fixed payments on a set schedule regardless of your sales volume. An MCA adjusts payments based on your daily revenue. You pay more when sales are strong and less when they slow down. Short-term loans offer more predictability; MCAs offer more flexibility.

Will an MCA affect my credit score?

Applying for an MCA typically does not impact your credit score, as most providers use a soft inquiry during the application process. Additionally, because an MCA is technically a sale of future receivables, not a loan, repayment activity is generally not reported to credit bureaus, which means it won't build your business credit either.

How long does it take to repay a merchant cash advance?

Repayment timeline depends entirely on your daily sales volume. Most MCAs are fully repaid within 4 to 18 months. When sales are strong, you repay faster. When sales slow, the timeline extends. There is no fixed end date or calendar-based deadline.

Are there any fees beyond the factor rate?

Some MCA providers charge origination fees, administrative fees, or processing fees in addition to the factor rate. Rise works with transparent providers who disclose all costs upfront. Always review the full terms before accepting any advance to understand the total cost of capital.

Can a startup get a merchant cash advance?

Yes. MCAs accept businesses with as little as 3 months of operating history. Many providers require only 3 to 6 months of operating history. As long as your business demonstrates consistent daily revenue, startups can qualify. If you have less than 3 months in business, a personal loan or microfinance option may be a better starting point.

Is a merchant cash advance right for my business?

An MCA works best for businesses that need capital fast, have consistent daily or weekly revenue, and value repayment flexibility over the lowest possible cost. If you need a larger sum for a multi-year investment, a long-term loan is a better fit. If you want ongoing access to funds, consider a business line of credit. If predictable fixed payments matter more than flexibility, a short-term loan may be preferable.

Trusted by Small Businesses Across the USA

Decision After Complete Documents

Within 2 Hours

Funding Available

$5K to $500K

Businesses Funded

Across All 50 States

Merchant Cash Advance in Your State

Available across all 50 states and Washington, D.C. Pick your state to see local programs, qualification specifics, and state-tailored FAQs.

Get The Capital You Need, Without The Wait

Apply for a merchant cash advance today and get funded as fast as 24 hours. No collateral, no fixed payments, and approval based on your revenue, not your credit score.

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