PrimeRates provides access to personalized business loan offers through our simple and quick pre-qualification application. Once you’re pre-qualified, you can select the best offer for you and finalize the business loan application with the lender.
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Our simple application takes less than 5-7 minutes to complete.
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Choose the offer that best fits your needs by comparing loan amounts and terms.
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Finalize your loan offer with the lender you selected to receive your funds.
Merchant cash advances (MCAs) provide $5,000 to $500,000 in funding within 24 hours based on daily credit card sales, with factor rates of 1.1x to 1.5x that translate to effective APRs of 40% to 350%. OnDeck, CAN Capital, and National Funding are the largest MCA providers, requiring no minimum credit score and as little as 3 months in business with $10,000+ monthly card volume.
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MCA providers do not advertise APR because MCAs are technically purchases of future receivables, not loans. Factor rates below determine total repayment. Multiply the advance by the factor rate to get your total payback amount.
| Provider | Factor Rate | Advance Amount | Holdback % | Min Monthly Revenue | Funding Speed | Best For |
|---|---|---|---|---|---|---|
| CAN Capital | 1.15–1.45x | $2.5K–$250K | 10%–20% | $8K | 24–48 hrs | Low card volume businesses |
| National Funding | 1.10–1.40x | $5K–$500K | 10%–15% | $10K | Same day | Larger advances, established businesses |
| OnDeck | 1.10–1.50x | $5K–$250K | Daily/weekly | $10K | Same day | Quick approval, hybrid term/MCA |
| Credibly | 1.10–1.45x | $5K–$400K | 8%–18% | $15K | 48–72 hrs | Revenue-based, flexible holdback |
| Rapid Finance | 1.18–1.48x | $5K–$500K | 10%–20% | $10K | 24 hrs | High-volume card businesses |
An MCA is not a loan. It is a purchase of your future credit card or debit card sales at a discount, a structure the FTC classifies separately from traditional lending. The provider gives you a lump sum today and collects repayment by automatically deducting a percentage of your daily or weekly card sales until the full payback amount is reached.
Example: You receive a $50,000 advance with a 1.3x factor rate. Your total payback is $65,000 ($50,000 × 1.3). The provider sets a holdback rate of 15% of daily gross card sales. If your business processes $3,000/day in card transactions, $450/day goes to the MCA provider until $65,000 is repaid — roughly 144 business days (about 7 months).
If sales drop, daily deductions decrease proportionally. Processing $1,500/day means $225/day to the provider, extending repayment to roughly 14 months. The total payback ($65,000) stays the same, but the effective APR drops because you are using the money longer.
If sales surge, repayment accelerates. Processing $5,000/day means $750/day, completing repayment in about 87 days (under 3 months). The total payback is still $65,000, but the effective APR spikes because you repaid faster.
Factor rates obscure the true cost because they do not account for repayment speed. Here is the real cost of a $100,000 advance at different factor rates and repayment timelines.
| Factor Rate | Total Payback | Fee (Cost) | If Repaid in 6 mo (APR) | If Repaid in 12 mo (APR) |
|---|---|---|---|---|
| 1.15x | $115,000 | $15,000 | ~34% | ~17% |
| 1.25x | $125,000 | $25,000 | ~57% | ~28% |
| 1.35x | $135,000 | $35,000 | ~82% | ~40% |
| 1.50x | $150,000 | $50,000 | ~120% | ~57% |
Monthly card volume. Most providers require $8,000–$15,000 in monthly credit/debit card processing. CAN Capital has the lowest threshold at $8K. National Funding and OnDeck require $10K+. Higher volume unlocks better factor rates and larger advances.
Time in business. Minimum 3–6 months for most providers. CAN Capital accepts businesses as young as 3 months. The key metric is consistent daily deposits, not business age.
Credit score. No minimum FICO is required by most MCA providers. For borrowers with 620+ credit, the SBA microloan program offers a far cheaper path to the same capital. Approval is based on revenue patterns, not creditworthiness. Borrowers with 500 FICO or below can qualify if card volume is strong. However, owners with higher credit may negotiate lower factor rates.
Bank statements. Providers analyze 3–6 months of business bank statements to verify deposit consistency. According to the Federal Reserve’s Small Business Lending Survey, MCAs are used by roughly 8% of small businesses seeking financing. Irregular deposits, frequent overdrafts, or declining revenue trends can result in denial or higher factor rates.
MCAs should be a last resort. Every alternative below costs significantly less for the same capital amount.
Business line of credit. Bluevine offers lines at 7.8%–25% APR with 24-hour funding for 625+ FICO. On $50K, a line of credit at 15% APR costs $7,500/year in interest. The same $50K as an MCA at 1.3x costs $15,000 in under a year — double the cost.
Short-term online loan. OnDeck and Kabbage offer 3–24 month term loans at 15%–45% APR. More expensive than traditional loans but 50%–75% cheaper than an MCA on the same amount.
SBA microloan. Up to $50,000 at 8%–13% APR with 6-year terms. Requires 620+ FICO and 2–6 weeks to fund, but costs 80%–90% less than an MCA.
Invoice factoring. If your business has outstanding B2B invoices, sell them at 1%–5% of face value for immediate cash. Fundbox offers factoring with next-day funding. The CFPB’s small business lending guide can help you compare these options. Cheaper than MCAs if your invoice volume supports it.
When it makes sense: You have been declined for all other financing (credit score below 550, less than 6 months in business, no collateral) and have explored no credit check business loans, need capital within 24 hours for a revenue-generating opportunity, and your daily card volume is high enough that the holdback does not threaten operating cash flow. If a $30K advance at 1.25x lets you fulfill a $75K contract, the $7,500 MCA cost is justified by the $37,500 profit.
When it does NOT make sense: You qualify for any other form of financing (even a high-rate online term loan at 30% APR is cheaper than most MCAs). You are using the advance for operating expenses with no clear ROI. Your card volume is inconsistent or declining. You already have an outstanding MCA. Or you are using an MCA for a long-term investment that should be financed with a term loan or SBA product.
A merchant cash advance is not a loan — it is a purchase of your future credit card sales at a discount. The provider gives you a lump sum and collects repayment by taking a daily percentage (10%–20%) of your card transactions until the total payback amount (advance × factor rate) is reached.
MCAs use factor rates of 1.1x to 1.5x. On a $50,000 advance at 1.3x, you repay $65,000 total — a cost of $15,000. The effective APR depends on repayment speed: roughly 69% if repaid in 6 months, 150%+ if repaid in 3 months. Always calculate the effective APR before signing.
No. Most MCA providers have no minimum credit score requirement. Approval is based on monthly card volume ($8K–$15K minimum), time in business (3–6 months), and deposit consistency. Owners with 500 FICO or below can qualify if revenue is strong.
Same day to 48 hours. National Funding, OnDeck, and Rapid Finance fund within 24 hours for approved applications. CAN Capital and Credibly typically take 24–72 hours. Apply early in the business day for same-day ACH funding.
Yes. MCAs are legal in all 50 states. Because they are structured as purchases of future receivables (not loans), they are not subject to state usury laws that cap interest rates. Several states including New York, California, and Virginia have introduced MCA disclosure laws requiring providers to show estimated APR and total cost.
If your card sales stop, the daily holdback stops because there is no revenue to deduct from. However, most MCA agreements include a confession of judgment clause or personal guarantee that allows the provider to pursue collection through other means. Read the contract carefully — some providers can freeze business bank accounts or pursue personal assets.
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