Merchant Cash Advance (MCA) Funding
Fast, flexible working capital from $10,000 to $5,000,000, repaid with fixed daily or weekly payments. Apply directly with a funder in business since 2014. Soft credit pull only.
Which page fits you? Four pages, four jobs.
What is a merchant cash advance?
A merchant cash advance (MCA) is a way for a business to receive a lump sum of working capital and repay a fixed total amount through set daily or weekly payments. It is not a loan, so the cost is set by a factor rate instead of an interest rate, and you know the total payback before you accept. Smart Business Funding offers $10,000 to $5,000,000 with a soft credit pull only.
Smart Business Funding® is a registered trademark (U.S. Reg. No. 7,637,151).
Merchant Cash Advance: How It Works, What It Costs and Who It Fits
By Anthony Collin, CEO, Smart Business Funding | Updated October 8, 2026 | Reviewed against our current program terms
A merchant cash advance (MCA) is a fast form of business funding. You receive a lump sum today and repay it over time from your business revenue. There are no fixed monthly loan payments and no multi-year term. This page explains how an MCA works, what the terms mean, what our two programs offer, and when an MCA is and is not the right tool, so you can decide with the full picture.
At Smart Business Funding, we have been funding small businesses since December 2014. When you apply directly with us, you work with us, not a broker or middleman.
What Is a Merchant Cash Advance?
A merchant cash advance is not a bank loan. It is a purchase of a portion of your future receivables. A funding company gives your business a lump sum up front. In exchange, you agree to repay a fixed total amount, collected in fixed daily or weekly payments.
Because approval focuses on your business revenue and performance rather than collateral or a long credit history, an MCA is often used by businesses that move quickly: restaurants, retailers, contractors, trucking companies, salons, auto shops and many others. Credit is reviewed, but it is not the only factor, and we do fund businesses with bad credit.
Why the structure is different from a loan
- Purchase, not borrowing. The funder buys a set amount of your future sales for a set price.
- A factor, not an interest rate. The total payback is the advance amount multiplied by a factor. You know the full amount before you sign.
- Short timeline. Terms are measured in months, not years.
- Speed. Decisions and funding often take hours or days rather than weeks or months.
How a Merchant Cash Advance Works, Step by Step
1. Apply
You or someone on your team fills out a short application and sends recent business bank statements. The application takes only a few minutes and does not require a business plan.
2. Get reviewed
Our team reviews your revenue, deposits, time in business and existing obligations. Many reviews are completed within hours. We use a soft credit pull only, so applying does not affect your credit score.
3. Review your offer
If approved, you receive the advance amount, the factor, any fees, the payment amount and schedule, and the estimated term. Read it closely and ask questions before you accept. We want the terms to be clear before anything is signed.
4. Receive funds
After approval and signed paperwork, funds are sent to your business bank account. Funding can arrive in as little as 24 hours, depending on the program, your documents and your bank.
5. Repay
Repayment is a fixed amount collected daily or weekly until the agreed total is paid. When about half is paid down, you may become eligible to renew (see the renewal section below).
A Worked Example
Suppose a business receives a $50,000 advance at a factor of 1.40. The total payback is $50,000 x 1.40 = $70,000. If the agreement runs for 10 months with weekly payments, the business repays about $1,615 per week ($70,000 divided by roughly 43 weeks). Any fees are disclosed in the agreement. This is an illustration of the math only, not an offer or a quote. Your factor, fees and term depend on your business and the program.
Merchant Cash Advance Cost Calculator
Enter your funding amount and factor rate to see your total payback, an estimated daily payment and an APR equivalent you can use to compare offers side by side.
This calculator gives estimates for illustration only. A merchant cash advance is the purchase of future receivables, not a loan, so no interest rate or APR applies to it. The "APR equivalent" is a mathematical conversion of the total cost over the repayment period into an annualized figure, shown only so you can compare offers with products that quote an APR. Because an MCA repays quickly, this figure is often much higher than the APR of a long-term loan. Actual payments, factor rates, fees and terms depend on underwriting and are stated in your funding agreement. Funding is subject to approval. See our Transparent Terms.
How Much Can I Qualify For?
Enter your average monthly revenue and pick your industry to see an estimated funding range. It takes a few seconds and does not touch your credit.
This estimator is for illustration only and is not an offer or a commitment to fund. It multiplies your monthly revenue by an industry-based range. Your actual amount, factor rate, fees and terms depend on underwriting, which looks at your bank statements and business history, and are stated in your funding agreement. Funding is subject to approval. Funding amounts range from $10,000 to $5,000,000, and you need at least 1 year in business. See our Transparent Terms.
Factor Rate to APR Converter
Offers quote a factor rate, but banks quote an APR. Convert one into the other to compare an offer with a loan or line of credit on the same scale.
This converter is for illustration only. A merchant cash advance is the purchase of future receivables, not a loan, so no interest rate or APR applies to it. The "APR equivalent" is a mathematical conversion of the total cost over the repayment period into an annualized figure, shown only so you can compare offers with products that quote an APR. Because an MCA repays quickly, this figure is often much higher than the APR of a long-term loan. Actual payments, factor rates, fees and terms depend on underwriting and are stated in your funding agreement. See our Transparent Terms.
Key Terms Explained
- Advance amount: the lump sum your business receives.
- Factor: the multiplier that sets the total payback. A factor of 1.30 on $20,000 means $26,000 is repaid.
- Total payback: advance amount multiplied by the factor.
- Fees: one-time charges, such as an origination or underwriting fee, which are disclosed in the agreement.
- Payment schedule: the fixed daily or weekly amount collected from your business account.
- Term: the estimated number of months to repay.
- Position: whether an advance is first, second or later behind other MCAs a business already has.
- Renewal: a new advance offered to an existing customer after a portion has been paid down.
Our Two Funding Programs
We offer two programs so that businesses at different revenue levels have a path. Both require at least one year in business.
| Program | Direct Fund (in-house) | Marketplace (partner-funded) |
|---|---|---|
| Funding amount | $10,000 to $5,000,000 | $10,000 to $5,000,000 |
| Terms | Typically up to 10 months, sometimes up to 15 | Up to 18 months |
| Factor | 1.309 to 1.499 | 1.22 to 1.499 |
| Standard fees | 5% to 10% | 0% to 10% |
| Minimum monthly revenue | $50,000 | $5,000 |
| Minimum time in business | 1 year | 1 year |
| Repayment | Fixed daily or weekly | Fixed daily or weekly |
| Credit review | Soft pull only | Soft pull only |
See our exact factor rates and fees on the Transparent Terms page.
The program that fits depends on your revenue and profile. We place each application with the program most likely to fit. Final amounts, factors and fees are set by underwriting. They are not guaranteed, and all funding is subject to review and approval. For a full breakdown of how we describe pricing, see our Transparent Terms page.
Requirements
- Time in business: at least 1 year.
- Revenue: at least $5,000 per month for the Marketplace program, or $50,000 per month for Direct Fund.
- Business bank account: an active business checking account with regular deposits.
- Bank statements: recent statements so we can see your deposits.
- Credit: we review credit with a soft pull, along with revenue and business performance. Bad credit does not automatically disqualify you.
Merchant Cash Advance and Bad Credit
Banks lean heavily on credit scores and collateral. An MCA looks first at what your business does: how much revenue comes in, how consistent deposits are, and how long you have operated. We do fund business owners with bad credit. Credit is one of several factors we review, using a soft pull, so checking your options will not lower your score.
That said, a weaker credit profile can affect the factor, the amount or the program you are placed in. If credit is your main concern, our guide on funding with bad credit goes into more detail.
Merchant Cash Advance vs. Traditional Business Loans
| Feature | Merchant Cash Advance | Bank or SBA Loan |
|---|---|---|
| Structure | Purchase of future receivables | Borrowed principal plus interest |
| Repayment | Fixed daily or weekly amounts | Usually fixed monthly payments |
| Decision speed | Often hours to days | Often weeks to months |
| Paperwork | Application and bank statements | Tax returns, financials, business plan |
| Credit focus | Revenue and performance, soft pull | Credit score and history weigh heavily |
| Term length | Months | Often several years |
| Total cost | Can be higher for the same amount | Often lower for qualified borrowers |
If you qualify for a low-cost bank or SBA loan and can wait for it, that may be the cheaper path. An MCA makes sense when speed and approval odds matter more than the lowest possible cost. We break this down further in MCA vs. SBA loan, MCA vs. business line of credit and MCA vs. term loan.
Benefits of a Merchant Cash Advance
- Speed: many businesses are reviewed within hours and funded within days, sometimes within 24 hours.
- Simple application: a short form and recent bank statements.
- Predictable payback: you know the total and the payment amount before you accept.
- Flexible use: funds can go toward any legitimate business purpose.
- Soft credit pull: checking your options does not affect your score.
- Works for many profiles: including newer businesses, seasonal businesses and owners with bad credit.
- Available alongside other financing: including businesses that already have an advance.
Potential Drawbacks to Consider
An MCA is not right for everyone, and you should weigh these points honestly:
- Higher cost. The total payback is often higher than a bank or SBA loan for the same amount.
- Frequent payments. Daily or weekly payments require steady cash flow. Make sure your margins can absorb them.
- Short terms. An MCA suits short-term needs better than long capital projects.
- Stacking risk. Taking several advances at once can strain cash flow. Only borrow what your revenue can comfortably support.
- Agreement terms. Many MCA agreements include a UCC filing or a personal guarantee. Read the document and ask about anything unclear before you sign.
Our team will tell you if an advance does not look like a good fit for your business. For a list of things to ask any funder, read 12 questions to ask before signing any MCA agreement.
When Is a Merchant Cash Advance a Good Idea?
Businesses commonly use MCA funding for:
- Inventory purchases ahead of a busy season
- Covering payroll during a slow stretch
- Emergency equipment or property repairs
- Marketing and advertising campaigns with a clear return
- Seasonal cash flow gaps
- Growth opportunities that will not wait for a bank
A good test: if the funds will produce revenue or protect revenue within the repayment period, and the payments fit comfortably in your cash flow, an MCA can be a sound tool. If the money would only be covering ongoing losses, pause and think through other options first.
How to Compare Merchant Cash Advance Offers
Whether you choose us or another funder, compare offers on the same basis. Ask every provider for the following in writing:
- Total payback. The dollar amount you will repay, not just the factor.
- Net funds. What actually reaches your bank account after fees are deducted.
- Payment amount and frequency. Daily or weekly, and the exact dollar figure.
- Estimated term. How many months the provider expects repayment to take.
- Fees. Every fee, when it is charged and whether it is deducted from the advance.
- Early payoff. Whether paying early changes the amount you owe. Get the answer in the agreement, not over the phone.
- Security and guarantees. Whether there is a UCC filing or a personal guarantee.
- Who you are dealing with. Whether you are speaking to the funder or to a broker who will shop your application.
A simple way to compare offers is to divide the total cost of the advance (total payback minus net funds) by the net funds. This gives you the cost per dollar received, which makes different factors and fees easy to line up side by side.
Is a Merchant Cash Advance Right for Your Business? A Quick Checklist
An MCA may be a good fit if most of these are true:
- You have been in business for at least a year and have steady deposits.
- You need funds quickly, and waiting weeks for a bank decision would cost you money.
- You have a specific use for the funds that should produce or protect revenue.
- Your margins can comfortably absorb fixed daily or weekly payments.
- You have reviewed the total payback and are comfortable with it.
An MCA may not be the right choice if you can qualify for a low-cost bank or SBA loan and are not in a hurry, if your margins are already thin, or if the funds would only delay a deeper problem. If you are unsure, talk to us. We would rather tell you an advance is not a fit than fund a deal that hurts your business.
What Happens After You Apply
Once your application and bank statements are in, a funding specialist reviews your file. You will hear from our team with a decision or questions, often within hours during business days. If you are approved, we walk you through the offer so you understand the amount, the factor, the fees and the payments. There is no obligation to accept. If you do accept, we send the agreement for signature, and funds go out to your business account after signing and final verification.
Early Payoff Discount
Pay your advance off early and keep more of your money. If you pay off in the first month, you receive 10% off the balance. If you pay off in the second month, you receive 5% off the balance. The details are stated in your written agreement, so you know exactly what applies before you sign. See our Transparent Terms for how we price.
Renewals for Existing Customers
Current and past customers who have paid down at least 50% of an advance and are in good standing may qualify for a renewal. Renewals may offer a larger amount, a longer term or improved terms, subject to review and approval. Existing customers can request a renewal here.
Industries We Commonly Fund
- Restaurants and food service
- Retail businesses and online retail
- Construction and contracting companies
- Trucking and transportation
- Auto repair and detailing
- Hospitality and hotels
- Real estate and property management
- Health, beauty and wellness businesses
- Credit-challenged and higher-risk industries
You can browse more on our industries page.
Merchant Cash Advance FAQ
What is a merchant cash advance in simple terms?
It is funding you receive up front in exchange for a portion of your future revenue. You repay a fixed total in fixed daily or weekly payments.
Is a merchant cash advance a loan?
No. An MCA is a purchase of future receivables, not a loan. That is why it uses a factor instead of an interest rate and why repayment follows a daily or weekly schedule rather than monthly loan payments. Our post Is a merchant cash advance a loan? covers the details.
How much does a merchant cash advance cost?
Cost is the factor plus any fees. Our Direct Fund program uses factors from 1.309 to 1.499 and standard fees of 5% to 10%. The Marketplace program uses factors from 1.22 to 1.499 and fees of 0% to 10%. Your exact pricing is set by underwriting and shown in your offer before you accept. See our exact factor rates and fees on Transparent Terms, or read How much does a merchant cash advance cost?
Will applying hurt my credit score?
No. We use a soft credit pull only, so applying does not affect your score.
Can I get a merchant cash advance with bad credit?
Yes, we fund businesses with bad credit. We review credit along with revenue and business performance. A weaker credit profile can affect your amount, factor or program, and approval is never guaranteed.
How fast can I get funded?
Many reviews are completed within hours, and funding can arrive in as little as 24 hours after approval, depending on the program and your documents.
What do I need to apply?
At least 1 year in business, an active business bank account, recent bank statements and minimum monthly revenue of $5,000 (Marketplace) or $50,000 (Direct Fund). See what documents you need.
How long do I have to repay?
Direct Funding Program terms typically run up to 10 months, and in some cases up to 15 months; partner Marketplace terms run up to 18 months. Payments are fixed and collected daily or weekly. Read more in typical repayment terms.
What happens if I miss a payment?
Contact us right away. Options depend on your agreement, and it is always better to call before a payment is missed. See what happens if you miss a payment.
Can I get an advance if I already have one?
Often yes, depending on your existing obligations and cash flow. We review each case on its own. See funding with an existing MCA.
Can I renew an advance?
Current and past customers who have paid down at least 50% and are in good standing may qualify for a renewal. You can request one here.
Get a Merchant Cash Advance Today
If you need fast, flexible business funding without the delays of traditional lenders, Smart Business Funding is here to help. Apply online, and we use a soft credit pull only, so it will not affect your score. Funding is subject to review and approval.
How We Write and Review This Page
This guide is written by Anthony Collin, CEO of Smart Business Funding. We have funded small businesses directly since our brand launched in December 2014, and the terms on this page come from our own current underwriting and funding programs, not from third-party estimates. Our worked examples use the factor rates and fees published on our Transparent Terms page. We review this page whenever our program terms change, and the date at the top shows the last substantive update.
This page is general information about a merchant cash advance, which is a purchase of future receivables and not a loan. It is not legal, tax or accounting advice, so talk with your own attorney or accountant before signing any funding agreement. All funding is subject to underwriting, approval and applicable terms.
Benefits of Smart Business Funding's Funding Program
Our merchant cash advance programs are built to keep your business moving, with clear terms and options that grow with you.
Tax-Deductible Funding
Funding costs may be deductible as a business expense, which can help reduce your tax liability. Ask your tax advisor how it applies to your business.
Renewal at 50% to 70% Paid Back
Once you have paid back 50% to 70% of your advance and your account is in good standing, you may qualify for a renewal. We review your account and walk you through your options. Request a renewal.
Side-by-Side Deals
If you need additional funding during your current advance, ask us about side-by-side options. Eligibility is subject to review.
Fast Funding
We typically provide funding within 24 to 48 hours from application, so your cash flow stays uninterrupted.
Simple and Quick
The application requires minimal documentation, so you can go from application to funding quickly and efficiently.
Flexible Use
Use your funding for business expenses of all kinds, including marketing, inventory, expansion and operating costs.
Works Alongside Other Financing
You may be able to use other financing while working with us, subject to a review of your existing obligations. See funding with an existing MCA.
No Collateral Required
Our direct merchant cash advance does not require collateral, so you can focus on growing your business. A personal guarantee or UCC-1 filing may still apply.
No Impact on Your Personal Credit Score
We use a soft credit pull only, so applying does not affect your personal credit score. We look at your business performance along with your credit profile.
Why Smart Business Funding?
Credentials you can verify and a team you can reach.
A+ Rating with the BBB
Smart Business Funding is rated A+ by the Better Business Bureau. View our BBB profile.
4.5 Trustpilot TrustScore, 100% 5-Star Reviews
Our clients consistently rate us five stars for service and reliability. Read our Trustpilot reviews.
Responsive Customer Service
Our team is here for questions, balance requests and renewals. Call 1-866-737-6278 (866-Re-Smart) or see our business hours.
Featured on the Inc. 5000
Smart Business Funding was honored on the 2020 Inc. 5000 list of the fastest-growing private companies in America. Read our Inc. profile.
Experienced Leadership
Our management team brings more than a decade of experience in the alternative finance industry, so you get reliable, informed guidance.
Dedicated Representative
You work with a dedicated representative who helps you navigate your funding options and makes sure your business needs are met.
A Direct Funder
Apply directly with us and you work with us, not a broker or middleman. That means faster decisions and clearer communication.
Clear Terms
You see the amount, factor rate, fees and payment schedule before you accept. Review our Transparent Terms.
Since 2014, Smart Business Funding has funded more than $500 million for small businesses across the country, supporting growth, expansion, marketing and operating expenses, and helping create jobs and new opportunities nationwide.
Apply. Qualify. Receive. Repay.
Getting funded takes four clear steps, with every number stated in writing before you sign.
Apply
You or a financial expert from your organization completes a brief application and sends it with recent business bank statements.
Qualify
Our team reviews your revenue, deposits and credit with a soft pull only. Many reviews are completed within hours.
Receive
After approval and signed paperwork, funds go to your business bank account, in as little as 24 hours depending on program, documents and bank.
Repay
Repayment is a fixed amount collected daily or weekly. Direct Fund terms run up to 10 months, sometimes up to 15. Marketplace terms run up to 18.
Funding for the businesses that keep communities running
Restaurants, shops, trades and services all run on timing. Explore how an MCA can support your industry.
About working with us
Do you have a weekly repayment option?
Yes. Weekly repayment options are available, subject to eligibility.
Are there any penalties for paying off the advance early?
Early payoff terms are set out in your agreement. Ask us about your options before you sign.
How long has Smart Business Funding been in business?
We opened in December 2014 and have been funding small businesses for over a decade.
How can I reach customer service?
Call 1-866-737-6278 (866-Re-Smart) or email Info@SmartBusinessFunder.com.
Where are you located?
Smart Business Funding is headquartered at 2420 NE 186th Street, Suite 401, North Miami Beach, FL 33160.
Are you affiliated with the Better Business Bureau?
Yes, we are proud of our A+ rating with the Better Business Bureau. You can view our profile on the BBB website.
Get the funding you need
Offers usually in 1 to 5 hours, funding as fast as 24 hours after approval, and amounts up to $5,000,000. We use a soft credit pull only, so applying will not affect your score.
See our factor rates and fees before you apply.
Smart Business Funding provides merchant cash advances, which are not loans. All funding is subject to review and underwriting approval. Amounts, factor rates, fees and terms vary by merchant.
Factor rate vs. APR: how to compare merchant cash advance offers
