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Merchant Cash Advance

A cash advance is a solid option for business owners in need of fast access to capital to help grow their business. A newer or existing business might run into an opportunity or an unfortunate situation – these financing options allow you to borrow against future earnings and get funded immediately.

Quick facts and Requirements

Loan Amount

$5,000-200,000

Loan Term

3-24 Months

Payment Frequency

Daily, Weekly, or Monthly

Interest Rate

18% - 40%+

Time to Funds

24hrs - a week

Benefits & Drawbacks

Easy to qualify for this type of advance
You're not giving up equity
No collateral is required
Higher interest rates in some cases
Additional fees for this type of advance

What is a Merchant Cash Advance?

ACH Advance: The most popular way is to have the lender look at the last 4 – 6 months of bank statements to determine the cash flow of the business and advance the money as soon as the next day. Payments are then made electronically when the customer gives the lender authorization to debit directly from the business’s bank account for the purpose of bill payment.MCA Advance: Is done by getting the aging reports on a business’s credit card revenue. A third party will then collect a suitable amount to pay the loan back by daily withholding a percentage of the credit card deposits. The loan will then be paid back over an average of 3 to 12 months. These loans are non-traditional but serve their purpose although rates can be much higher.

Qualifying

This type of financing is innovative, unique, and easy to qualify for, but must be used in the right situations. As you do your homework consider things such as reputation, ratings, and client feedback. Lendio will match you with the best loan for your business and then walk you through the entire process step-by-step. Visit our TrustPilot page to see what our borrowers think!

What Types of Businesses is it Good For?

A cash advance allows a business to borrow against future earnings. Requirements for this type of financing are extremely lenient due to the nature and terms of the loan. Generally, any business that needs access to fast working capital can qualify.

What are the Minimum Requirements?

Normally, credit is not pulled and financial documents are not required for approval. Popular loans are granted after the lender is able to look at the last 4 – 6 months of bank statements to determine the cash flow of the business.

How Much Will a Cash Advance Cost?

MCA CalculatorMerchant cash advance factor rates can be very expensive. Traditional cash advance loans will have lower interest rates compared to non-traditional loans. But non-traditional rates although much higher serve a valuable purpose. The bottom line is to know how much capital you’re going to need, who your lender is, what their reputation is, and what you can afford.Lendio walks you through this process step-by-step to ensure you are getting the best business loan for your situation.

Why use Lendio?

Lendio's mission is to empower your business by making small busienss loans simple through options, speed, and trust. Whether you are looking for an acquisition loan or a term loan, Lendio offers hundreds of different loan products from a variety of lenders. Finding out which business loan is best for you is why we're here.