What credit score do I need for an MCA?

Most merchant cash advance approvals require a 500+ FICO score. Strong revenue can offset lower credit, and qualified applications with consistent deposits and time in business have a strong chance of approval.

How fast can I get an MCA?

Most merchant cash advances close in 24 hours from application to funded. Same-day funding is available for clean files submitted before 11 AM ET.

What's the typical factor rate?

Factor rates range from 1.10 to 1.45. A 1.30 factor on $100k means you'll repay $130k total.

How is the daily payment calculated?

Either a fixed daily ACH (e.g., $400/day) or a percentage of card-batch deposits (e.g., 12% of card sales) split at the processor.

Can I pay off an MCA early?

Some lenders offer prepayment discounts of 5–15%. Most do not — the full factor amount is owed even on early payoff. Always confirm in writing.

Will an MCA hurt my credit?

MCAs do not typically report to personal credit bureaus. A UCC-1 will be filed against the business, which is publicly searchable.

Can I get an MCA with bad credit?

Yes — MCAs are revenue-based, with FICO down to 500 routinely approved when monthly deposits are $25k+.

What is a confession of judgment?

A clause allowing the funder to obtain a judgment without notice if you default. Confessions of judgment are now banned for use in NY courts but still appear in some MCA contracts — read carefully.

Can I get a second MCA on top of my first?

Stacking is allowed by some lenders but very risky. We strongly recommend paying down or refinancing your first advance before adding new debt.

Will the funder file a UCC?

Yes — a UCC-1 is standard. It does not encumber specific assets but signals to other lenders that an advance exists.

How much can I qualify for?

Typical approvals are 80–125% of average monthly bank deposits. Strong files routinely qualify for $100k–$500k; the largest MCAs reach $2M.

MCA

Merchant Cash Advance

Fast capital based on future receivables.

A merchant cash advance gives your business a lump sum of capital in exchange for a percentage of future credit card or bank deposits. Participating funding providers offer MCAs from $5,000 to $2,000,000 in as little as 24 hours, with flexible daily or weekly remittances tied to revenue.

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Amount

$5,000 – $2,000,000

Term

3 – 18 months

Speed

Funding as fast as 24 hours (subject to approval)

Best for

4 use cases

Best for

Restaurants & retail with daily card sales
Seasonal businesses bridging slow months
Owners with less-than-perfect credit
Businesses that need same-day funding

Key features

No collateral required
Approval based on revenue, not credit score alone
Daily, weekly, or monthly remittances
Renewals available after 50% paid down
Funds usable for any business purpose

How MCA works

An MCA is structured as a sale of future receivables, not a loan. You receive a lump sum today and agree to repay a fixed total — your funded amount times a factor rate (typically 1.10 to 1.45) — through a percentage of future deposits.

Repayment happens automatically: an ACH debit pulls a fixed dollar amount daily or weekly, or a percentage of card-batch deposits is split at the processor. Because remittance is tied to revenue, slow weeks pull less and busy weeks pull more.

MCAs do not have a traditional APR because the term is variable — pay it back faster by selling more, slower by selling less. Effective APR-equivalents typically range from 30% to 90% depending on factor rate and remittance speed.

Qualifications

Time in business	6+ months
Min monthly revenue	From $15,000 for some MCA programs; the general Simply Approved prequalification minimum is $35,000 in monthly business deposits. Requirements vary by funding provider and jurisdiction.
Min FICO	500
Bank statements	3 months (4 in NY/CA, 6 in Canada)

Pros

Same-day approval, funding as fast as 24 hours (subject to approval)
Approval based on revenue — bad credit OK
Remittance scales with sales (slow week = smaller pull)
No hard collateral required
Renewals available once 50% paid down

Cons

•Higher cost than bank or SBA loans (effective 30–90% APR)
•Daily ACH debits require disciplined cash management
•Stacking multiple MCAs damages cash flow quickly
•Confession-of-judgment clauses common — read every contract

Common mistakes to avoid

Stacking advances
Taking a second MCA before the first is paid down doubles your daily debit and is the leading cause of MCA-related defaults.
Ignoring the factor rate
A 1.40 factor on $100k means $140k owed regardless of how fast you repay. Always compute the effective APR before signing.
Funding the wrong use case
MCAs work for short bridges (3–9 months). Don't use them to fund year-round payroll or long-term capex.

Real-world scenarios

Restaurant — $75k holiday inventory

A 2-location BBQ operator took $75k at 1.32 factor over 9 months to pre-buy meat and labor for Q4. Repaid through Q4 card-deposit lift.

Salon — $40k expansion bridge

A 4-chair salon used a $40k MCA to bridge between rebrand expense and the post-rebrand revenue lift. Renewed at 60% paid down.

When another product is a better fit

Business Line of Credit →
If you have stronger credit and want revolving access at lower cost.
Working Capital Loans →
If you want a fixed-amortization term loan instead of revenue-based remittance.
Invoice Factoring →
If your cash gap comes from B2B receivables rather than thin daily deposits.

How to apply

01
Submit a 1-page application online
02
Provide 3 months of business bank statements
03
Receive same-day approval and offer
04
Funds wired to your business account in 24 hours

MCA vs. other funding options

Side-by-side comparison of MCA against the most common alternatives. Use this to decide which structure fits your business stage, cash flow, and use of funds.

Product	Amount	Term	Speed	Best for
MCA This page	$5,000 – $2,000,000	3 – 18 months	Funding as fast as 24 hours (subject to approval)	Restaurants & retail with daily card sales
Line of Credit →	$10,000 – $1,000,000	Revolving	Approved in 1–3 days	Managing cash flow gaps
Working Capital →	$5,000 – $1,000,000	3 – 24 months	Funding as fast as 24 hours (subject to approval)	Bridging seasonal slow periods
Term Loan →	$25,000 – $5,000,000	1 – 5 years	Funded in 2–7 days	Expansion, renovations, or buildouts

FAQs about MCA

An MCA is a sale of future receivables, not a traditional loan. There's no fixed APR — instead, you repay a fixed total (the factor amount) through a percentage of daily or weekly deposits.

First-hand experience

Expert insight from Simply Approved Business Loans

Based on applications submitted through our network, mca files clear fastest when the business has 3+ months of consistent deposits, no recent NSFs, and a clear use of funds tied to revenue (not a debt-stack rescue). Complete, well-organized files typically see better pricing from participating funding providers.

The most common mistake we see on MCA applications is mismatched stated revenue vs. actual deposits. Funding providers pull a Plaid or statement read; if your numbers don't reconcile to within ~10%, the file gets re-graded down a tier or declined outright. Always pre-reconcile before submission.

Approval speed for MCA ($5,000 – $2,000,000, funding as fast as 24 hours (subject to approval)) depends largely on documentation completeness. Clean files — full statements, voided check, ID, and a 90-second answer to "why now?" — can close inside 24 hours. Missing pieces push close to 3–5 business days.

If you're declined on MCA, ask specifically whether the issue is revenue, time-in-business, credit, or industry. Each has a different fix path — and Simply Approved Business Loans, as an independent marketing and referral service, can route declined files to an alternative product (revenue-based financing, equipment, or factoring) with participating funding providers rather than walk you away.

Reviewed by Simply Approved Underwriting Team · August 2026

Lead-gen pre-check

See if you qualify for MCA

$5,000 – $2,000,000 · Funding as fast as 24 hours (subject to approval). Pre-qualification is free and doesn't affect your credit.

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Eligibility checker

No credit pull. No data stored. Instant answer.

Underwriting disclaimer: The eligibility checker is a self-reported pre-qualification tool. It does not constitute an offer of credit or a guarantee of approval. Every funded file goes through full underwriting — including bank statement analysis, business verification, and a credit inquiry whose type (soft or hard) is disclosed before you sign. Final terms, rates, and amounts depend on underwriting and the specific lender or program.

Business funding in as little as 24 hours

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Free to apply. No upfront fees. Available to qualified applicants with a complete file; timing varies by funding provider.

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MCA by state

State-specific underwriting notes and scenarios for MCA borrowers.

Industries that use MCA

See how MCA fits the cash-flow needs of each industry participating funding providers fund.

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$5,000 to $25,000,000. Free pre-qualification. No upfront fees. Same-day decisions for clean files.

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Merchant Cash Advance

Best for

Key features

How MCA works

Qualifications

Pros

Cons

Common mistakes to avoid

Real-world scenarios

When another product is a better fit

How to apply

MCA vs. other funding options

FAQs about MCA

See if you qualify for MCA

Eligibility checker

Ready to see what you qualify for?

Related products

Business Line of Credit

Working Capital Loans

Business Term Loan

MCA by state

Industries that use MCA

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