How to research and apply for a merchant cash advance 101

A merchant cash advance, sometimes referred to as an MCA, provides working capital in the matter of hours or days for a business with debit or credit card sales. Simply put, if your business is generating revenues but can’t qualify for a small business loan, a merchant cash advance is generally the next option.

With merchant cash advance, a lender is providing working capital as a purchase of your future sales.

MCAs can provide you with quick working capital.

What are the required documents to apply for a merchant cash advance?

The application process for a merchant cash advance is much simpler, and quicker than applying for a small business loan. The entire process can be complete in just a few hours, and be funded same day.

A merchant cash advance lender will typically ask you for these items:

· Your total income

· Typical credit card transactions

· Projected future performances

Most lenders who evaluate merchant cash advance applications do not heavily scrutinize credit scores. Most important to qualifying for a merchant cash advance is how much credit or debit card sales your business is generating.


Review your financing contract for a merchant cash advance approval

Once applied and approved, review the financing contract provided by the lender. Typically, a merchant cash advance will approve you for an advance amount, have a factor rate, and terms for repayment typically in daily, weekly or monthly withdrawals.