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. Simply Approved Business Loans funds MCAs from $5,000 to $2,000,000 in as little as 24 hours, with flexible daily or weekly remittances tied to revenue.

Apply now

Amount

$5,000 – $2,000,000

Term

3 – 18 months

Speed

Funded in 24 hours

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	$15,000
Min FICO	500
Bank statements	3 months (4 in NY/CA, 6 in Canada)

Pros

Same-day approval, 24-hour funding
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	Funded in 24 hours	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	Funded in 24 hours	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

In day-to-day underwriting we see 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). Files that match this profile typically price 10–25% better than the lender's posted floor.

The most common mistake we see on MCA applications is mismatched stated revenue vs. actual deposits. Underwriters 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, funded in 24 hours) depends 80% on documentation completeness. Clean files — full statements, voided check, ID, and a 90-second answer to "why now?" — 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 at Simply Approved Business Loans we route declined files to an alternative product (revenue-based financing, equipment, or factoring) rather than walk you away.

Reviewed by Simply Approved Underwriting Team · June 2026

Lead-gen pre-check

See if you qualify for MCA

$5,000 – $2,000,000 · Funded in 24 hours. Pre-qualification is free and doesn't affect your credit.

Free pre-check

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.

Apply now – funded in 24 hours

Ready to see what you qualify for?

Free to apply. No upfront fees. Real underwriters review every file.

Start application

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 we fund.

Get funded in as little as 24 hours

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

Apply now — it's free See how it works

Check your credit score before you apply.

Lenders weigh your personal credit heavily for business funding. Monitor scores from all 3 bureaus, get real-time alerts, and follow personalized steps to qualify for better terms.

Just $1 for your first 15 days, then $24.95/month. Cancel anytime.

Real-time score tracking from all 3 bureaus

Instant alerts when your score changes

Personalized tips to improve your score

Dark web monitoring & identity protection

Affiliate disclosure: we may earn a commission if you enroll. Service provided by myFreeScoreNow.

Get funding tips & rate updates

Join 5,000+ business owners getting weekly funding strategies, lender rate changes, and insider tips to secure capital faster.

Rate alerts & market updates

Funding tips to boost approval odds

Exclusive lender deals & fast-track access

No spam. Unsubscribe anytime. We respect your inbox.

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

Get funded in as little as 24 hours

Check your credit score before you apply.

Get funding tips & rate updates