- Amount
- $5,000 – $500,000
- Term
- Typically 3 – 18 months, variable with sales
- Speed
- Often same day
A merchant cash advance is not a loan. It is the sale of a fixed amount of your future card receivables at a discount, and it is repaid by remitting an agreed share of each day’s card sales until the purchased amount is delivered.
The practical consequence is that repayment flexes with the business: slower weeks remit less, busier weeks remit more. The trade-off is cost. An advance is priced with a factor rate rather than an interest rate, it does not amortise, and it is materially more expensive than a term loan. It suits businesses with strong card volume and a reason not to wait — not businesses looking for the cheapest capital available.
Commonly used for
- Retail, restaurant and e-commerce with steady card volume
- Situations where speed matters more than cost
- Businesses that do not qualify for conventional term debt
- Short, self-liquidating needs tied to sales
What it generally takes to qualify
- At least one year in business
- Around $15,000 or more in monthly revenue
- A credit score of roughly 500 or better
Guidelines, not hard cut-offs — tell us the situation and we will tell you where it stands.
Questions
Is a merchant cash advance a loan?
No. It is a purchase of future receivables. That distinction affects how it is priced, how it is documented and how it is regulated, and it is the reason an advance quotes a factor rate rather than an APR.
What does a factor rate mean?
A factor rate is a multiplier on the amount advanced. A 1.3 factor on $50,000 means $65,000 is remitted in total. Because there is no amortisation, repaying faster does not reduce that figure.
What if sales slow down?
Because remittance is a share of sales, a slow week remits less and the schedule simply extends. That flexibility is the core feature of the product.
Related products
Apply for merchant cash advance
A few minutes, no cost and no credit pull. The application is specific to this product.
Start the application