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Merchant cash advance for small business

Don’t let fluctuating revenue or a bad credit score stand in the way! A small business lending company can provide the resources to help secure the capital you need for success.

What is a merchant cash advance (MCA)?

Quick solution for instant capital

We’ll review your online application within one business day and deposit the lump sum advance into your bank account in as little as 24 hours.

Use funding as you want

Whether you want to stock up on inventory, pay employees, spend on marketing, or purchase equipment—you decide how to use the funds for your business.

Worry-free remittances 

Dealing with fluctuating revenue? With merchant cash advances, remittances are adjusted to better fit your revenue during a particular month.

Speak to a merchant cash advance expert

Benefits of a merchant cash advance for your business

Fast approval in as little as 4 hours

Apply online in 10 minutes

Traditional bank loans require mountains of paperwork and weeks of waiting—and still have staggeringly low approval rates. With Credibly, you can:

  • Complete an online application form in 10 minutes or less.
  • Expect a response based on an assessment of your business’s health within one business day.
  • If approved, receive your business’s cash advance directly in your account in less than 24 hours.

Approval based on your future, not your past

Fluctuating revenue or a poor credit score shouldn’t prevent a healthy, growing business from reaching its full potential. Merchant cash advances are available to businesses that meet the following criteria:

  • 500+ credit score
  • 6+ months in business
  • $15,000+ average monthly bank deposits*

Max advance up to $400,000

Get the financing you need

Depending on your situation, goals, and revenue, you can secure a cash advance for your business to cover temporary cash flow shortfalls and pay for:

  • Equipment, inventory, or supplies
  • Employee salaries
  • Short-term projects or repair emergencies

Required documentation

You don’t need to dig up years’ worth of history to gain approval. All that’s needed to secure a cash advance for your business is:

  • Signed receivables purchase agreement
  • Business mortgage statement or business lease agreement
  • Valid government-issued photo ID of all owners
  • Bank statements from the business bank account associated with the business—most recent 3 months

Don’t worry! If you’re not sure what this all means, we’re happy to talk this through with you. That’s what we’re here for.

For advances over $100,000, we require your most recent business tax return.

Automatic remittances tied to receivables

An advance, not a loan

Unlike a loan, a merchant cash advance provides your business with capital by allowing us to purchase a percentage of your daily credit and debit card sales.

  • No need to provide any additional assets as collateral
  • Set percentage remitted every day
  • Remittances are deducted automatically
  • Average term length: 3 to 15 months

Explore your options without damaging your credit score

Getting your small business off the ground can feel like an uphill battle if you have a low credit score or fluctuating revenue. A merchant cash advance for your small business will allow you to:

  • Avoid potential damage to your credit score
  • Obtain an advance with a lower credit score
  • Access capital to support your business goals without offering up assets or committing to costly loan repayments

Factor rates as low as 1.11***

Favorable terms

Credibly aims to make both funding and remittances intuitive, convenient, and easy to manage.

  • We present merchant cash advance pricing as a factor rate: Factor Rate = Purchased Amount ÷ Advanced Amount.
  • Underwriting fee: A one-time 2.5% of the total advance amount set up fee is added to your balance at funding
  • Admin fee: $50 monthly payment

How to get a merchant cash advance

Step 1
Pre-qualify online

To pre-qualify, follow the “Get Started” button and enter some basic business information.

Step 2
Approval in as little as 4 hours

We’ll review your application and reach out to you with the best financing options.

Step 3
Receive same-day funding

If approved, you can get the complete amount deposited directly into your account the same day, plus access to your online account and automatic remittances.

What other business owners say

What customers say about our small business loans
Fast, simple business financing

Business financing as it should be—easy. Online application, one-day review, and funds deposited into your account.

The right financing for your business

Customized capital solutions to ensure your business gets the right funding and amount for your business needs and goals.

Best-in-class customer service

Credibly business experts are standing by to help you—from the moment you submit an application until your final remittance.

Effortless automatic payments

Remittances are withdrawn automatically from your bank account, so you can focus on running your business.

Merchant cash advance: advantages and disadvantages

Merchant cash advance financing can be great for seasonal businesses or those looking for short-term financing options. Is it right for you?

Advantages of a merchant cash advance
  • MCA’s offer flexibility on what you can use the funds for, making them a great short-to-mid-term solution.
  • Flexible remittances mean you only pay what you can afford every month.
  • They’re typically easier to qualify for, even if you don’t have a strong business credit score.
Disadvantages of a merchant cash advance
  • MCAs are shorter in duration, making them less effective for financing large growth initiatives.
  • Remittances may have to be adjusted after the month has ended.
  • Business cash advances can be more expensive than alternative financing options.

Other financing options**

Line of credit

Draw as you need and only pay for what you use.

Working capital loan

Always have enough cash flow to seize any opportunity.

Long-term loan

Longer-term funding to help you reach the next stages of growth.

All financing options

Still looking for the right fit? Check out all of Credibly’s business financing options.

Why Credibly?

One of the leading merchant cash advance companies

With a TrustPilot rating of 4.8, an A+ on BBB, and a history of helping over 30,000 small businesses throughout the USA achieve their dreams, a merchant cash advance from Credibly is more than a mere transaction—it’s a partnership.

 

The financing provider that cares about your potential

Credibly recognizes that you’re more than just your credit score and income statement, which is why we look at your potential growth and overall business health when assessing your application.

Flexible financing with a data-driven approach

We know a credit score doesn’t always paint a full picture of your business. At Credibly, we use data science to better evaluate your business as a whole.

Secure and convenient checkout process that fits your schedule

Our state-of-the-art online checkout empowers eligible customers to complete their checkout process securely and on their own time.

Fast approvals with efficient processes

We understand your business needs don’t wait. Our process can get you approved for financing in as fast as 4 hours, so you can focus on running your business.

FAQ

Is a merchant cash advance a loan?

Technically, a merchant cash advance is not a loan. With an MCA, a business owner sells a portion of their future credit and debit card sales for money they can use right away.

The provider of the advance (in this case, Credibly) then collects a percentage of the daily sales the business makes from credit cards until the amount of the advance, plus the factor rate,has been collected.

The percentage that is collected from the credit/debit card transactions is known as “holdback.”

Are merchant cash advances legal?

Yes, merchant cash advances are legal.

Merchant cash advances are not traditional loans—they are purchases of future payment receivables for an upfront, discounted purchase price.

Because they are true sales and do not come from a traditional bank, there is no fixed payment or term, as well as no principal, interest, or interest rate involved. State usury and/or lending laws do not apply.

Do merchant cash advances hurt your credit score?

A merchant cash advance will not directly hurt your credit score or give you bad credit, but it could indirectly lower your score by raising your outstanding balance and your credit utilization ratio. Enquiring about a business cash advance, however, will not affect your credit score in any way.

How much does a small business cash advance cost?

Cash advances are priced as a total cost of capital with fees and factor rates included. Factor rates are typically based on the risk associated with funding your business.

Unlike many business loans, obtaining a merchant cash advance for your business does not require you to provide any additional assets as collateral. This can be beneficial for smaller businesses that might not have major assets, like real estate or vehicles, to offer.

Is there a financial benefit to paying off your small business cash advances early?

With Credibly, merchants can get an early remittance discount. This means a discount is available to business owners who remit their full obligation earlier than the specified terms stated in the initial agreement.

What can you use a merchant cash advance for?

Funds from merchant cash advances can be used for many different purposes, but since it is a type of short-term funding, an MCA is best used for covering temporary cash flow shortfalls.

Small business owners use cash advances for things like buying inventory, paying employees, making emergency repairs, marketing expenses, purchasing equipment, and other short-term expansion projects.

Does your credit score matter for a merchant cash advance?

Although merchant cash advances are often attainable for businesses with credit scores that prevent them from getting traditional business loans, that doesn't mean your credit score isn't a factor at all.

Each merchant cash advance provider has different criteria for approval, but they generally do check your credit score before approving an application.

Credibly's credit score requirement, for example, is 500+.

How do you apply for a merchant cash advance?

Applying for a merchant cash advance is a much simpler process than applying for a traditional business loan or working capital.

You'll be asked to provide some basic information and documentation, such as:

  • Past bank and credit card statements
  • A copy of your business lease
  • Your business tax ID number
  • Your personal social security number
  • References
  • A copy of your driver's license or another type of government-issued photo ID
  • A copy of your business tax returns

Applications for merchant cash advances are approved very quickly, and once approved, business owners receive their funds within a matter of days.

To learn how much you qualify for, fill out our online pre-qualification request. Submission is free and easy and will not negatively impact your credit score.

Elevate your small business with a merchant cash advance

If you’ve got 10 minutes to spare, you can obtain capital without hassle or gruelling repayment terms with a merchant advance.

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* $15K+ avg. deposits for a three-month average and the most recent month. Rates, pricing, requirements, and other terms and conditions are subject to change without notice.

**Some products are made available through Credibly’s network of external funding partners

*** Factor rates are included in your daily estimate to simplify remittances and account monitoring. Best factor rates available to merchants with excellent credit and financial strength.