Best Merchant Cash Advances in July 2026
Get a merchant cash advance from lenders like Credibly, which can fund in as little as four hours, or Reliant Funding, which has no minimum credit score requirement.
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Merchant cash advances (MCAs) offer fast funding with flexible eligibility, but factor rates can translate to APRs in the triple digits. It’s worth comparing all small business financing options before committing to an MCA.
- You need funding fast. MCAs can be processed and funded in as little as two to four days, with some lenders offering same-day business funding.
- You generate a lot of debit and credit card sales. If your business processes significant daily debit and credit card transactions, you’re a strong candidate for MCA financing.
- You have limited credit history. Borrowers with bad credit or no collateral often find it easier to qualify for an MCA than a conventional bank loan.
- You need flexible spending. MCAs generally don’t restrict how you use the funds.
- You’ve exhausted lower-cost options. MCAs are expensive. Consider alternatives like term loans, lines of credit and SBA options first.
| Lender | Best for | Starting rate | Amount | Term | |
|---|---|---|---|---|---|
|
Fast funding | 11.00% |
$5k – $600k |
3 to 24 months | |
|
Revenue advance | 13.00% |
$5k – $1.5M |
Up to 18 months | |
|
Limited credit history | 1.20 ( factor rate) |
$2k – $2M |
2 to 24 months | |
|
Large advances | Not specified | Up to $3M | Not specified |
Best merchant cash advances: More details
Best for: Fast funding – Credibly
- Starting rate
- 11.00%
Credibly’s minimum rate is a 1.11 factor rate. This means you’d repay 11.00% (plus any additional fees) on top of the amount borrowed.
- Funding in as little as four hours
- Early repayment discount available
- Accepts credit scores as low as 550
- Daily or weekly automatic payments
- $240,000 annual revenue requirement
Credibly is our top choice if you need funding quickly. Applications are approved in as little as two hours, with funding available in as little as four, making it one of the fastest options on our list.
Credibly accepts credit scores as low as 550 and requires only 6 months in business, making it an accessible option for newer businesses. They also offer an early repayment discount. If you pay off the advance in full you can receive 20% off the factor portion, reducing the overall cost of financing.
→ Check out LendingTree’s full Credibly review.
- Minimum credit score: 550
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Revenue advance – Fora Financial
- Starting rate
- 13.00%
Fora Financial’s minimum rate is a 1.13 factor rate. This means you’d repay 13.00% (plus any additional fees) on top of the amount borrowed.
- Same day funding available
- Advances up to $1,500,000
- Predictable payments instead of daily deductions
- $240,000 annual revenue requirement
- Requires no open bankruptcies or current, conflicting financing
- Higher minimum credit score than some lenders on this list
While Fora Financial doesn’t offer a true merchant cash advance, they offer a revenue advance — upfront capital with structured payments matched to your revenue profile. Unlike a traditional MCA, repayment doesn’t fluctuate with your daily card sales, which can make it easier to manage cash flow. Fora Financial offers advances up to $1,500,000, making it a strong option for businesses that need larger amounts of capital.
→ Check out LendingTree’s full Fora Financial review.
- Minimum credit score: 570
- Minimum time in business: 6 months
- Minimum annual revenue: $240,000
Best for: Limited credit history – Reliant Funding
- Starting rate (factor rate)
- 1.20
- Same-day funding available
- No minimum credit score requirement
- Early repayment discount available
- Daily or weekly payments required
Reliant Funding is our top pick for borrowers with limited credit history. Unlike most lenders on this list, Reliant has no minimum credit score requirement, making it one of the most accessible MCA options available.
Reliant also has a straightforward qualification process. You’ll just need 6 months in business and a $1,000 minimum daily balance in a dedicated business checking account. Same-day funding is available, with approvals in as little as 30 minutes.
→ Check out LendingTree’s full Reliant Funding review.
- Minimum credit score: No minimum
- Minimum time in business: 6 months
- Minimum annual revenue: $1,000 minimum daily revenue balance in your dedicated business checking account
Best for: Large advances – Elevation Capital
- Starting rate
- Not specified
- Advances up to $3,000,000
- Low minimum revenue requirement ($12,500/month)
- Factor rates and terms not disclosed upfront
- Minimum credit score not disclosed
Elevation Capital is our top pick for businesses that need large advances. With funding up to $3,000,000, it offers the highest advance amount on this list, a strong option for businesses with significant capital needs.
Qualification is relatively accessible, requiring just 6 months in business and $12,500 in average monthly revenue, lower than most lenders on this list. Keep in mind that factor rates, terms and minimum credit score are not disclosed upfront, so you’ll need to contact Elevation Capital directly to understand the full cost of borrowing.
- Minimum credit score: Not specified
- Minimum time in business: 6 months
- Minimum annual revenue: $150,000
What is a merchant cash advance?
A merchant cash advance (MCA) is a type of small business financing where a lender provides an upfront lump sum in exchange for a percentage of your future debit and credit card sales.
MCAs are accessible to businesses with limited credit history or inconsistent revenue, and funding can arrive in as little as a few hours. MCAs don’t require good credit scores or collateral, but you’ll pay significantly more than traditional small business loans. They charge a factor rate instead of a traditional interest rate, which can translate to the equivalent of 40% to 350% APR when calculated annually.
Some MCA lenders use confusing contracts, undisclosed fees or high-pressure tactics. Always read the full agreement before signing and confirm the total repayment amount upfront.
How does a merchant cash advance work?
When you apply for an MCA, the lender reviews your monthly sales to assess how much to advance and at what cost. Your daily card volume matters more than your credit score. Instead of a fixed monthly payment, the lender collects a predetermined percentage of your daily sales called the “holdback rate” or “retrieval rate” until the advance is fully repaid. Holdback rates typically range from 5% to 20%.
There are three ways lenders collect repayment:
- Split withholding: The lender partners with your credit card processor to automatically split a percentage of daily card sales between your business and the MCA provider. Higher sales mean faster repayment, while slower days mean smaller deductions.
- Lockbox or bank account withholding: All card sales flow into a separate account first. The lender takes its percentage before transferring the remainder to your business bank account. This method involves a one-day delay in receiving funds, which can put additional pressure on cash flow.
- Direct ACH withholding: The lender deducts fixed payments from your business checking account based on estimated monthly revenue. This is closer to a traditional loan structure with a set repayment schedule.
On top of factor rates, MCA lenders may also charge additional fees such as origination fees, which can significantly increase the overall cost of borrowing.
MCA rates and fees
Merchant cash advance companies typically charge a factor rate instead of a traditional interest rate, which means that there’s a flat sum you pay to borrow money rather than interest that builds over time. To calculate how much you’ll pay with a factor rate, multiply the advance amount by the factor rate.
Depending on the lender and your company’s unique profile, your MCA factor rate could range from 1.10 to 1.5. Since MCAs aren’t officially categorized as loans, consumer protection laws preventing lenders from charging higher rates and fees than banks often don’t apply to them. This means MCA lenders can charge high fees, and some lenders may not clearly state the fees when you sign up.
Multiple variables help determine your factor rate, such as your company’s industry, time in business, personal and business credit scores, financial records and debit and credit card revenue. As with other types of financing, the more risky you appear, the more likely you’ll end up paying a higher rate.
In addition to the factor rate, merchant cash advance lenders may also charge other fees, such as origination fee of up to $3,000, which can significantly increase the overall cost of your financing.
How to calculate the cost of an MCA
The formula: Advance amount × factor rate = total repayment amount
For example, a $100,000 advance at a 1.20 factor rate means you’ll repay $120,000 total. The $20,000 difference is the cost of borrowing. Origination fees and other charges are added on top.
How long repayment takes depends on your sales volume. Using a 10% holdback rate on $50,000 in monthly card sales:
| Monthly holdback (10%) | $5,000 |
| Daily holdback | $166.67 |
| Time to repay | 24 months |
The more card sales your business does, the faster you’ll pay it off, but the total amount owed doesn’t change. Paying early won’t reduce what you owe.
When taking out a merchant cash advance, it’s important to understand how much it’ll cost you in the long run. While you can convert a factor rate to an interest rate, this doesn’t consider any additional fees. To understand the complete cost of borrowing an MCA, you need to calculate your APR.
Let’s say you want to borrow $100,000 with a 1.2 factor rate, a $1,000 origination fee and a maximum 120-day repayment term. Based on our calculations, you could expect to pay around 116.41% APR with a total loan payout of $121,000. As you can see, a 116.41% APR is relatively high compared to what you might get from a traditional bank loan, which can offer interest rates as low as 7%.
In the example above, the business has to pay back $120,000. Let’s assume the merchant cash advance company takes 10% of monthly credit card sales. Because sales aren’t consistent from month to month or from business to business, repaying a $120,000 MCA could vary based on your sales volume.
Here are two examples of how repaying a MCA might differ based on your revenue:
| Business A | |
|---|---|
| Total cost of the merchant cash advance: | $120,000 |
| Monthly credit card sales: | $50,000 |
| Payback amount per month: | $5,000 |
| Daily payback amount (in a 30-day month): | $166.67 |
| Time to repay full amount: | 24 months |
With monthly credit card sales of $50,000 and a 10% holdback rate, it takes Business A two years to repay the full MCA plus the factor.
| Business B | |
|---|---|
| Total borrowed with a merchant cash advance: | $120,000 |
| Monthly credit card sales: | $100,000 |
| Payback amount per month: | $10,000 |
| Daily payback amount (in a 30-day month): | $333.33 |
| Time to repay full amount: | 12 months |
With twice the monthly credit card sales volume, it takes Business B half the time to repay its MCA. However, since the total repayment amount doesn’t change over time with a factor rate, there’s no real incentive to pay off your MCA debt early.
Pros and cons of MCAs
Pros
- Suitable for seasonal businesses. Payments adjust with your sales volume, so slower months mean smaller payments.
- Accessible to businesses with limited credit. Approval is based primarily on cash flow, not credit score.
- Automatic payments. Funds are withdrawn automatically so you don’t have to worry about missing a due date.
- Fast funding. Approval and funding in as little as 24 hours.
- No collateral required. MCAs are an advance against future sales, not a secured loan.
Cons
- No prepayment benefit. The total repayment amount is fixed upfront, so paying early won’t save you money.
- Expensive form of financing. APRs can reach 40% to 350% when the factor rate is converted.
- Can harm cash flow. Daily or weekly deductions can worsen existing cash flow problems.
- Confusing rates and terms. Lack of federal regulation means costs can be hard to compare across lenders.
- May limit business decisions. Some contracts restrict changes to processors, locations or payment methods.
MCAs vs. small business loans
While merchant cash advances and small business loans can provide quick business financing for various expenses and projects, MCAs tend to have higher rates and fees.
For example, fixed-rate term loans typically have 5% to 35% or higher APRs. In contrast, if you convert the factor rate first, MCAs have an estimated APR range of around 40% to 100% or higher.
For those wanting to build business credit, you may be better off with a traditional business loan since MCA lenders don’t report payments to the business credit bureaus. That said, low-credit borrowers, startups and those without collateral might find it easier to qualify for an MCA if they have a decent cash flow.
How to get an MCA
- Review requirements. Each lender has different criteria, but most weigh your monthly revenue more heavily than your credit score.
-
Compare lenders. Look for transparency around factor rates, fees and total repayment amount. A reputable lender should disclose all costs upfront.
→ Check out LendingTree’s small business lender reviews. - Gather documents. Most lenders require recent bank statements, a government-issued ID and basic business information.
- Apply and get funded. You can apply for a merchant cash advance online with an alternative business lender. Most MCA lenders have an online application and can make a funding decision in hours.
Alternatives to MCAs
MCAs are one of the most expensive ways to borrow money for your business. If you have time to explore other options, these alternatives typically offer lower rates and more favorable terms.
Short-term business loans
Short-term business loans are a good fit if you want predictable fixed payments and the ability to build business credit. Most lenders report to the credit bureaus; MCAs don’t.
Business line of credit
Business lines of credit are best for businesses that need flexible, on-demand access to funds. You only pay interest on what you draw, making it more cost-effective than taking a lump sum advance.
Working capital loans
Working capital loans are a lower-cost option for covering everyday expenses like payroll and inventory, with longer repayment terms than most MCAs.
Equipment financing
Equipment financing is worth considering if your capital need is tied to a specific equipment purchase. The equipment acts as collateral, which often means lower rates and longer terms than an MCA.
SBA Loans
SBA loans offer some of the lowest rates available for small business financing. Approval takes longer than an MCA — sometimes weeks — but the cost savings are significant for businesses that qualify.
Business credit cards
Business credit cards are a practical alternative for smaller, everyday purchases. APRs are typically lower than MCA factor rates and you only pay for what you spend.
Frequently asked questions
Yes. MCA lenders typically weigh cash flow and card sales volume more heavily than credit score. Some lenders on this list, like Reliant Funding, have no minimum credit score requirement. You can check your credit score for free with LendingTree Spring before applying.
Yes, as long as you’ve been in business for at least six months and meet the lender’s revenue requirements.
Check out LendingTree’s guide to how to get a startup business loan.
The lender can sue your business for the outstanding balance. Some MCA agreements also include a personal guarantee, meaning you could be held personally liable if the business can’t repay.