Merchant Cash Advance
Get access to future revenue today.
$5,000 – $300,000
4 – 24 Months
$25,000 – $500,000
1 – 5 Years
$5,000 – $350,000
1 – 3 Years
Up to $250,000
Up to $200,000
1 – 12 Months
Actual offers vary based on your application information and lender.
A Merchant Cash Advance is the sale of part of a business's future revenue in exchange for a lump sum of working capital. Merchant Cash Advance repayment amounts are a factor — or fixed percentage — of your sales. You'll always know what your repayment amount is since the factor will not change. Customers typically make daily or weekly payments via ACH or a percentage of daily credit card sales.
Merchant Cash Advance at a Glance
Benefits of a Merchant Cash Advance
Merchant Cash Advances Are Ideal for:
Merchant Cash Advance vs. Business Loans
Merchant cash advances and business loans are often lumped together because they are both specific types of funding intended for businesses. A business can apply for either an MCA or a business loan, and, once approved, will receive funds from the lender. However, the funds from a business loan and the funds from an MCA are two very different things.
Funding from a business loan is just that: It's a loan that you repay, with interest, over a set repayment period. Funding from an MCA is technically a "cash advance," in that the lender purchases a portion of your future sales. In effect, the lender owns a portion of your future sales, and they collect a percentage from these sales until you've paid off the balance and the initial forwarding fee. There is no set repayment period or interest rate with an MCA.
Whichever loan you're looking at, both have advantages and disadvantages you should take into consideration.
Merchant Cash Advance
- Easy-to-meet eligibility requirements
- Repayment based on actual profits
- No interest or fixed repayment period
- Lenders may charge a variety of fees
- Cannot repay early
- Often is a higher-cost borrowing choice
- Typically a lower-cost borrowing option
- Fixed repayment period and amount
- Ability to repay early
- Stringent eligibility requirements
- Often requires a good personal credit rating
- Must make periodic repayments, even if profits are down
How The Business Backer Can Help
Since 2007, The Business Backer has been providing small businesses across the country with financing solutions. We understand how important it is to have access to working capital in order to meet your business’s needs.
In order to help businesses get access to that working capital, we provide a wide variety of business financing solutions. The Business Backer has its own in-house funding products, but we’re also partnered with a number of other trusted financing companies, known as our True Relationship NetworkTM. We will pair you with one of our Funding Advisors, who will get to know you and your business goals to help match you with the best funding solution possible.