Imagine you’re at a coffee shop with a friend who runs a little boutique or a food cart. They slump in their chair and groan, “I’ve got a killer chance to stock up for the holidays, but my cash is tied up, and banks won’t even look at me. How do I keep this thing alive?” You’ve felt that squeeze, haven’t you?
Running a small business is all heart and hustle until the money stalls out. Here’s something that might perk you up: merchant cash advances (MCAs) for small businesses.
They’re fast, they don’t fuss over your credit, and they can toss you a lifeline when you’re scrambling. But—fair warning—they’re not cheap, and they’re not a cure-all. Let’s dig into how these work, why they matter to small biz owners like you, and what to watch out for when the chips are down.
What Is a Merchant Cash Advance?
A merchant cash advance is where a lender hands you a lump sum—say, $10,000—and in return, they snag a slice of your future revenue until they’re paid back, plus a fee.
It’s not a traditional bank loan with fixed monthly payments. Instead it’s tied to how much you’re ringing up daily or weekly.
For small businesses, this is a game-changer. The lender doesn’t care about your spotty credit or how long you’ve been around. For them, it’s all about your sales. If you’re swiping cards (or taking Venmo, whatever), you’re in the running.
In fact, you can get approved with just three months of bank statements. Yes, you heard me – 3 months.
Most traditional business lenders need between 1-2 years worth of financial statements before they even think about offering you any options.
How Does a Merchant Cash Advance Work for Small Businesses?
You start by applying here online and provide your most recent financial statements. Usually the past 3-6 months of income or revenue work fine. Most of the time you don’t even need to get on the phone and talk with anyone.
Bad credit? Doesn’t matter.
Profit and loss statements? They’re more into your cash flow.
When you’re approved, you can literally have funds in your account TODAY.
Everything has pros and cons, and MCAs are no different.
On the plus side, you can get your money FAST. The negative side is that you’ve gotta pay that money back, and so they’ll take a cut—10%-20%—of your daily or weekly card sales until the total’s squared, fee included.
Say you grab $15,000 with a 1.3 factor rate (that’s the fee kicker)—you owe $19,500. If you’re averaging $1,000 daily in card sales and they take 15%, that’s $150 a day—done in 130 days. But if sales dip to $400? It’s $60 daily, stretching to 325 days.
The great thing for sole proprietorships is that with a loan program like this, you don’t need a business credit score. Financing options for small business owners can get complicated. It can be difficult to find a funding option that can move as quickly if all you’ve got is an LLC and a business bank account.
When it comes to getting a business loan for sole proprietors, this is as simple and as fast as it gets.
What are the Requirements for a Merchant Cash Advance as a Small Business?
Almost every small business can apply for working capital. You just need to make sure you meet the bare minimum requirements for the loan application:
- At least three months of consistent revenue
- No specific credit score requirement
- For same day funding: Must be able to electronically link your bank account to verify your information
If you meet these bare minimum requirements, you’ll almost certainly be approved through one of our partners.
What Are the Risks of Merchant Cash Advances?
One of the biggest advantages of merchant cash advances is also one of their biggest negatives.
MCAs don’t have a set repayment schedule, so they don’t get paid until you do. Instead, they’ll take a portion of your daily or weekly revenues, so your cashflow will get tighter than normal until the lender is paid back.
For example, if you’re a sole proprietor and have fixed, predictable costs, this can be a great way to solve short term cashflow issues.
How Can Small Businesses Apply for a Merchant Cash Advance?
Ready to jump? Here’s your roadmap:
- Start Your Application: Click here to begin your application
- Answer A Few Basic Questions: Our partners will want to know if you meet their requirements before they look at your application.
- Link (Or Upload) Your Last 3-6 Bank Statements: If you can link your bank statements electronically that’s always best. However, even PDF copies will work (but they might take longer to verify)
- Receive an Offer (Usually within Minutes): Our partners work extremely quickly, and if they can verify your information, you’ll usually be approved within minutes.
- Receive Your Funds: Usually within 24 hours, and often within minutes.
Here’s Your Next Step
So, where’s this leave you? If you’re a small biz owner dodging cash crunches—stock shortages, slow patches, or a growth grab—an MCA could be your clutch move. It’s not pretty: the costs hit hard, and weak sales stretch the pain.
But when banks won’t budge on your short track record, and your biz hangs in the balance, it’s a real play to keep going. Use it sharp—stock up for a boom, bridge a dip, or snag a quick win—not as a fix for every flop.
Funding’s your shift from “I’m sunk” to “I’m still swinging.” It’s not magic—it’s grit. Need to keep the doors open or chase that next sale? An MCA can get you there. Map your sales, borrow what you can swing, and keep pushing—raw, real, ready.
Get Money In Minutes
CLICK HERE to apply for funding and make it happen on your terms