Merchant Cash Advance for Small Businesses — Fast Funding from a Trusted MCA Lender.
Your business does the revenue. We turn that revenue into working capital — same day. No collateral, no board meetings, no six-week bank process. Just real funding matched by a real advisor.
What is a merchant cash advance?
A merchant cash advance is a lump sum of working capital provided to your business in exchange for a percentage of your future credit card and debit card sales. It is not a loan. There is no fixed monthly payment, no interest rate, and no collateral requirement.
Instead of borrowing against assets, you are selling a portion of your future receivables at a discount. The MCA provider purchases those future sales today and gives you the cash up front. Repayment happens automatically — a small, agreed-upon percentage is deducted from your daily card transactions until the advance is fully repaid.
Because underwriting is based on revenue rather than credit history, merchant cash advances are accessible to business owners who might not qualify for traditional bank financing. The trade-off is cost: MCAs are priced with factor rates rather than APR, and the effective cost of capital is higher than a conventional term loan. For many small businesses, the speed and flexibility make that trade-off worth it.
How a merchant cash advance works.
You apply.
Fill out a single-page application and upload three months of bank statements. No SSN required to see offers. Takes about five minutes.
We match offers.
Your Berkman advisor takes your file to our network of 40+ funding partners. Within two hours, you see every offer side by side — factor rate, total payback, and daily payment.
You accept and sign.
Pick the merchant cash advance that fits your cash flow. Sign electronically. No trip to a branch, no notary, no stacks of paperwork.
Funds hit your account.
Same business day. Most wires land within four to six hours of signing. The advance amount goes directly to your business bank account.
Want the full breakdown? See how our funding process works.
Who qualifies for a merchant cash advance?
MCA underwriting is based on your business performance, not your personal credit profile. If your business generates consistent revenue, you are likely eligible.
Minimum requirements
- 6+ months in business
- $15,000+ in monthly revenue
- Active U.S. business bank account
- No open bankruptcies
- Credit scores from 500+ accepted
You do not need to accept credit cards to qualify. Businesses with ACH, invoice, or cash-based revenue are also eligible through related products like revenue-based funding.
Benefits of a merchant cash advance.
Same-day funding.
Most merchant cash advances fund the same business day you sign. When you need capital to cover payroll, buy inventory, or take on a new contract, waiting six weeks for a bank decision is not an option. An MCA closes the gap between opportunity and action.
No collateral required.
A merchant cash advance is unsecured. You do not pledge your home, your equipment, or your accounts receivable. Approval is based on the strength of your sales, not the assets on your balance sheet.
Flexible repayment.
Repayment is tied to your daily sales volume. Strong sales days mean slightly larger payments; slow days mean smaller ones. This built-in flexibility protects your cash flow during seasonal dips, slow weeks, or unexpected downturns.
Minimal paperwork.
A one-page application and three months of bank statements. That is the entire documentation requirement. No tax returns, no profit-and-loss statements, no business plans, and no in-person meetings.
Credit score is not the deciding factor.
Traditional lenders reject applicants based on credit scores alone. MCA providers underwrite based on revenue. Business owners with past credit issues, limited credit history, or scores below 600 qualify routinely.
Use funds for anything.
There are no restrictions on how you use merchant cash advance funds. Payroll, equipment, marketing, inventory, renovations, debt consolidation, tax payments — your business, your call.
Merchant cash advance vs. traditional business loans.
| Merchant Cash Advance | Bank Term Loan | SBA Loan | |
|---|---|---|---|
| Time to fund | Same day | 2–8 weeks | 30–90 days |
| Credit score minimum | 500+ | 680+ | 680+ |
| Collateral | None | Required | Required |
| Repayment structure | % of daily sales | Fixed monthly | Fixed monthly |
| Documentation | Bank statements only | Tax returns, financials, business plan | Extensive |
| Approval rate | High (revenue-based) | Low (credit-based) | Very low |
| Use-of-funds restrictions | None | Often restricted | Restricted |
A merchant cash advance is not always the cheapest option — but when you need capital fast and cannot wait for traditional underwriting, it is often the most practical one.
Industries that use merchant cash advances.
Any business with consistent revenue can qualify, but these industries fund with MCAs most often. We have funded over 10,000 businesses across all of them.
Don't see your industry? Browse all industries we fund.
How much does a merchant cash advance cost?
Merchant cash advances are priced using a factor rate, not a traditional interest rate. The factor rate is a multiplier applied to the advance amount to determine your total repayment.
For example, a $100,000 advance at a 1.20 factor rate means you repay $120,000 total. The $20,000 difference is the cost of capital. Factor rates for merchant cash advances typically range from 1.15 to 1.35, depending on your revenue, time in business, industry, and repayment history.
Unlike interest on a traditional loan, the factor rate does not compound over time. The total payback amount is fixed from day one. Whether you repay in three months or twelve, the total cost does not change — though some providers offer early-payoff discounts.
Every offer from Berkman Financial shows the factor rate, the total payback, the holdback percentage, and the estimated daily payment. No hidden fees, no math required.
How to apply for a merchant cash advance.
Applying for a merchant cash advance at Berkman Financial takes five minutes. There is no hard credit pull, no lengthy documentation, and no commitment until you accept an offer.
What you need
- Legal business name and EIN
- 3 months of business bank statements
- Owner name and contact info
- Monthly revenue estimate
What you don't need
- Tax returns or financials
- Business plan or projections
- Collateral documentation
- In-person meetings or branch visits
What happens next
- Soft credit pull only (no score impact)
- Advisor reviews your file in ~2 hours
- Side-by-side offer comparison
- Sign and fund same business day
What business owners use merchant cash advances for.
Inventory and supplies.
Stock up before a busy season, take advantage of bulk pricing from suppliers, or replace inventory that is moving fast. An MCA gives you the cash to buy at the right moment instead of waiting for receivables to come in.
Payroll and staffing.
Hiring ahead of a contract, covering payroll during a slow stretch, or onboarding seasonal staff. A merchant cash advance bridges the gap between when you need people and when the revenue catches up.
Equipment and repairs.
A broken walk-in cooler, a truck that needs a new transmission, or a piece of production equipment that cannot wait. MCA funds are unrestricted — use them for any equipment need without a separate equipment loan.
Marketing and expansion.
Launch a new location, run a marketing campaign, renovate your space, or invest in a new revenue channel. Business owners use MCAs to fund growth moves that generate returns quickly.
Emergency expenses.
Unexpected tax bills, insurance premiums, legal fees, or property damage. When cash is needed immediately and a bank timeline is not an option, a same-day merchant cash advance fills the gap.
Debt consolidation.
Multiple existing advances stacking up daily payments that squeeze your cash flow. Berkman Financial offers MCA consolidation to combine those obligations into one structured, lower payment.
Risks and considerations.
We believe in full transparency. A merchant cash advance is a powerful tool, but it is not free money. Understanding the trade-offs helps you make a smarter decision.
Higher cost of capital
MCA factor rates translate to a higher effective cost than traditional loans. This is the premium for speed, accessibility, and flexibility. Compare the total payback of every offer before signing.
Daily payment impact on cash flow
The holdback percentage reduces your available cash each day. Make sure your margins can support the daily deduction without creating a new cash flow problem. Your Berkman advisor will model this with you.
Not regulated like loans
Merchant cash advances are a commercial transaction, not a loan. They are not subject to usury laws or Truth in Lending Act disclosures in most states. Work with a reputable provider who shows all costs up front.
Stacking risk
Taking multiple MCAs at once — called stacking — can overload your daily cash flow. If you already have an active advance, talk to your advisor about consolidation options before taking a second position.
Merchant cash advance questions.
What is a merchant cash advance?+
A merchant cash advance (MCA) is a type of business funding where a provider advances a lump sum to your business in exchange for a percentage of your future credit card or debit card sales. It is not a loan — there is no fixed monthly payment. Instead, repayment adjusts automatically based on your daily sales volume.
How fast can I get funded with a merchant cash advance?+
Most merchant cash advance applications are reviewed within two hours. Once you accept an offer and sign, funds are typically wired the same business day — often within four to six hours. At Berkman Financial, same-day funding is the standard, not the exception.
Do I need good credit to qualify for an MCA?+
No. Merchant cash advances are underwritten primarily on your business revenue and sales volume, not your personal credit score. Business owners with credit scores as low as 500 routinely qualify. We only perform a soft credit pull during the application process.
How much does a merchant cash advance cost?+
MCA pricing uses a factor rate rather than an interest rate. Typical factor rates range from 1.15 to 1.35. For example, a $100,000 advance at a 1.20 factor rate means you repay $120,000 total. Every offer from Berkman Financial shows the factor rate, total payback amount, and estimated daily payment up front.
What is the difference between an MCA and a business loan?+
A business loan has fixed monthly payments, requires collateral, and involves a lengthy underwriting process. A merchant cash advance has flexible daily payments tied to your sales, requires no collateral, and funds within hours. MCAs are technically a purchase of future receivables, not a loan, which means they are not subject to the same lending regulations.
Can I pay off my merchant cash advance early?+
Yes. Most merchant cash advances can be paid off early. Some MCA providers offer early-payoff discounts that reduce the total cost. Your Berkman advisor will identify which offers include early-payoff savings before you sign.
What happens if my sales slow down?+
Because repayment is a fixed percentage of your daily sales, slower days mean smaller payments. This built-in flexibility is one of the biggest advantages of a merchant cash advance over fixed-payment products. You are never locked into a payment you cannot afford.
Can I get a merchant cash advance if I already have one?+
Yes. Many business owners take a second or third MCA position, known as stacking. If you are over-leveraged from multiple advances, Berkman Financial also offers MCA consolidation to combine your existing advances into a single, more manageable payment.
Get your merchant cash advance today.
Five-minute application. Real offers in two hours. Same-day funding. One named advisor from start to finish. Join 10,000+ small businesses that have funded with Berkman Financial since 2015.
Not sure if a merchant cash advance is right for you? Compare all Berkman funding options.