Merchant cash advance: fast working capital, with straight talk on the cost
Merchant cash advances, lines of credit, term loans and equipment financing under one roof. We look for the lowest-cost option you qualify for first, and use an MCA only when it’s the right tool.
Straight talk: if you qualify for a bank loan or line of credit, we recommend it first because it costs less. If you don’t, we match you with the next best option, including an MCA, so you aren’t left unfunded.
What a merchant cash advance is, and what it isn’t
An MCA (also called a cash flow advance) is an advance against your future sales, not a traditional loan. It’s approved mainly on your revenue, not your credit score.
Always the best fit first
- Bank or LOC firstIf your numbers fit bank underwriting, we submit there before anything else.
- Next best loanIf you’re declined, we move to the closest alternative, e.g. a term loan instead of a line of credit.
- Multiple offersYou see your options side by side, and you’re never obligated to accept.
- MCA safety netIf the higher tiers don’t work, an MCA can keep you operating.
How to compare merchant cash advance companies
There are hundreds of merchant cash advance companies and MCA lenders. The best one for you isn’t the one with the fastest approval. It’s the one whose total payback, payment schedule and contract terms fit your cash flow. Compare these on every offer before you sign.
| What to compare | What a good offer looks like | Red flag |
|---|---|---|
| Total payback | Factor rate stated up front, with the total payback in dollars | Only the daily payment is quoted |
| Estimated APR | In California, funders must disclose an estimated annual rate on offers of $500,000 or less | No written cost disclosure |
| Payment schedule | Weekly payments, or daily payments sized to your average deposits | Payments that leave too little for payroll and rent |
| Fees | Origination and other fees listed in the offer, in dollars | Fees that first appear at funding |
| Early payoff | A written discount if you pay it off early | The full payback is owed even if you pay off in month two |
| Reconciliation | A clause that lowers your payments if sales drop | No way to adjust payments when revenue falls |
| Stacking | Clear about whether the advance is in first or second position | Pushes a second or third advance on top of one you already have |
| Who you’re dealing with | A licensed broker or funder you can verify (CA DFPI, NMLS) | No license number and no real address |
Direct funder or broker?
A direct funder can only offer its own program. A broker like Liberty Capital Group sends your file to several MCA funders at once, and first checks whether you qualify for a line of credit, term loan or equipment financing that costs less. That’s how we’ve funded over $250 million for businesses since 2004.
What it takes to qualify for an MCA
| Category | Requirements / details |
|---|---|
| Revenue | Average $10K–$20K a month over the last 3–4 months. No minimum FICO if revenue is consistently $75K+ a month. |
| Minimum sales | $10K a month, consistently and consecutively |
| Deposits | Active businesses with 3–5+ deposits a month (varies by lender) |
| Time in business | Typically 6+ months (some programs from 3 months) |
| Credit | Target FICO around 500+. Stronger credit earns better pricing and terms. |
| Amounts | Up to $5,000,000 per location, depending on qualifications. Up to 150% of average monthly sales. |
| Terms | 2–24 months, repaid daily or weekly |
| Pricing | Factor rate typically 1.10–1.50 per $1 advanced |
| Early payoff | An early payoff discount is often available (program-specific) |
| Documents | Bank statements, bank verification, completed application, proof of ownership and time in business |
| Other loans | Non-MCA products usually need 12–24 months in business |
Terms vary by industry, cash-flow stability, credit and seasonality.
When an MCA makes sense, and when it doesn’t
Makes sense
- A short-term need with a clear payback, like inventory that sells within weeks
- A seasonal gap before your busy months
- An emergency repair that keeps revenue coming in
- Your bank said no, and waiting would cost you more than the advance
Watch out
- Using it for long-term purchases like equipment or real estate. Equipment financing costs far less.
- Stacking several advances without a plan. Up to about 5 is possible, but we don’t recommend it.
- Covering a recurring monthly shortfall. That’s a cash-flow problem, not a funding gap.
- Signing before you compare the total payback, not just the daily payment
To apply
- A one-page application
- 3–4 months of business bank statements
At funding
- Voided check
- Driver’s license
- Proof of ownership
Experience matters
A merchant cash advance isn’t only expensive; it can be complicated. A seasoned broker knows what each lender values, how to present your cash-flow story, and which structure supports your growth without choking your margins.
- Online pre-qualification and minimal paperwork
- Multiple offers across products, so the lowest cost wins
- Transparent terms and straight talk on the risks
- Decades of underwriting know-how
Other funding we can match you with
Merchant cash advance questions
Is a merchant cash advance a loan?
No. An MCA is a purchase of your future receivables. You receive a lump sum now, and a set amount is collected from your sales or bank account, daily or weekly, until the agreed total is paid.
What credit score do I need for an MCA?
Lenders typically target a FICO of about 500 or higher, and stronger credit gets better pricing. If your revenue is consistently $75,000 a month or more, some programs have no minimum FICO.
How much can my business get?
Up to 150% of your average monthly sales, and up to $5,000,000 per location, depending on qualifications.
How fast is funding?
Typically 24 to 48 hours after approval and a completed file. You need a one-page application and 3–4 months of bank statements to start.
What does an MCA cost?
MCAs are priced with a factor rate, typically 1.10 to 1.50 per dollar advanced. For example, $50,000 at 1.25 means $62,500 is paid back in total. An early payoff discount is often available.
Should I try for a bank loan first?
Yes, if you qualify. We submit to bank and line-of-credit programs first when your numbers fit, and move to an MCA only if the lower-cost options don’t work.
How do I choose among merchant cash advance companies?
Compare the total payback in dollars, not just the daily payment. Ask for the estimated APR (required in California on offers of $500,000 or less), and check the fees, the early payoff discount, the reconciliation clause and whether the funder or broker is licensed. A broker can put several offers side by side so the lowest cost wins. The California Department of Financial Protection and Innovation (DFPI) oversees these disclosure rules.
Ready to compare your options?
We’ll show you a line of credit, a term loan and an MCA side by side, and let the numbers decide.
Disclaimer: this page is educational and not legal, tax or accounting advice. Examples are illustrative only. All approvals, terms and pricing are subject to change based on credit, revenue trends, industry and lender guidelines. A merchant cash advance is a purchase of future receivables, not a loan. Liberty Capital Group, Inc. NMLS #2009539. CA DFPI #60-DBO49692.