A merchant cash advance (MCA) allows a business to access funds quickly and repay them using a portion of future sales. This kind of financing can be critical for small businesses on tight margins, but MCAs can have high rates and costly fees.
CNBC Select has picked the best merchant cash advance companies for a variety of needs, including fast funding, poor credit and large advances. For more on how we made our selections, see our methodology.
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Best for flexible funding: Credibly
Who's this for? Credibly stands out for its flexible eligibility requirements and for not imposing any restrictions on how the funds can be used. It also has minimal documentation requirements — just a government-issued photo ID, business bank statements from the past three months and a signed receivables purchase agreement or a business lease or mortgage statement.
Standout benefits: Credibly reviews applications within one business day and can provide funding in as little as 24 hours. There is also a discount for early repayment of MCAs.
Credibly
Types of financing
Long-term loans, working capital loans, business line of credit and merchant cash advance
Better Business Bureau (BBB) rating
A+
Amounts
$5,000 to $400,000
Terms
3–15 months
Minimum credit score needed
500+
Minimum requirements
Must have been in business for at least six months and have average monthly revenue of at least $15,000
Terms apply.
Pros
- Offers multiple options for small business financing
- Can get approved within four hours
- Low minimum credit score requirement
- Provides loan amounts of up to $400,000
- Funds deposited as soon as the same business day
- Considers overall business health as an approval criteria
Cons
- Requires an average monthly revenue of at least $15,000
Best for large advances: Libertas Funding
Who's this for? With up to $5 million in revenue-based funding available, Libertas Funding is a good option if you need access to a large amount of cash. You must demonstrate at least $150,000 in monthly revenue and have a FICO score of at least 630.
Standout benefits: Libertas Funding offers customized estimated remittance frequency options and a 10% to 25% discount for early repayment.
Libertas Funding
Types of financing
Term loans, merchant cash advance
Better Business Bureau (BBB) rating
A+
Amounts
Up to $5 million
Terms
3–24 months
Minimum credit score needed
625 for term loans, 630 for merchant cash advance
Minimum requirements
Must be a U.S. citizen or permanent resident with a U.S.-based business, minimum 2 years in business, 625 personal FICO score, $100,000 in average monthly deposits for term loans; $150,000 in monthly revenue and a 650 FICO score for merchant cash advance
Terms apply.
Pros
- Same-day financing available
- No prepayment penalties
- Provides financing of up to $5 million
Cons
- High eligibility requirements
Best for comparison shopping: Lendio
Who's this for? Lendio makes it easy to find the best advance option by matching you with a network of over 75 lenders. Applicants only need $12,000 in monthly revenue and a FICO score of 570.
Standout benefits: Once your advance is approved, you can receive funding in as little as 24 hours.
Lendio
Types of financing
Term loans, business acquisition loan, equipment financing, business line of credit, SBA loans, business cash advance, commercial mortgage, startup loan
Better Business Bureau (BBB) rating
A+
Amounts
Up to $5 million
Terms
Vary by loan type and lender
Minimum credit score needed
Vary by loan type and lender
Minimum requirements
Vary by loan type and lender
Terms apply.
Pros
- Wide selection of loan types
- Ability to receive and compare multiple offers
Cons
- Varying times to receive funds, depending on the loan type
Best for bad credit: Fora Financial
Who's this for? Fora Financial allows qualifying business owners to get a revenue advance of up to $1.5 million with a credit score of 500.
Standout benefits: Terms can be up to 18 months, with a discount for early repayment. You can also increase the advance amount after paying off at least 60% of the original balance.
Fora Financial
Types of financing
Small business loan, revenue advance
Better Business Bureau (BBB) rating
A+
Amounts
$5,000 to $1.5 million
Terms
Up to 15 months
Minimum credit score needed
500
Minimum requirements
Be in business for at least six months; have $15,000 per month in revenue; no open bankruptcies
Terms apply.
Pros
- Offers higher funding amount compared to other lenders
- Considers lower credit scores
- Approval and funding in 24 to 48 hours, according to the lender's website
- Borrowers can increase loan amount after paying back at least 60% of the original loan amount
- Offers a prepayment discount
Cons
- Short loan term of just 15 months
What is a merchant cash advance?
A form of revenue-based financing, a merchant cash advance i(MCA) involves a lump sum of money lent in exchange for a portion of a business's future sales revenue. While often small cash infusions, MCAs can be for millions of dollars.
The advance is viewed as a sale of future revenue rather than a traditional loan, so it's easier to get approved for an MCA and collateral isn't required. Businesses can often get funded in as little as 24 hours.
Merchant cash advances are often used by businesses with high credit card sales that need fast capital.
How a merchant cash advance works
Rather than an interest rate, an MCA comes with a factor rate, expressed as a decimal (usually between 1.1 and 1.5). Your total amount owed equals the advance multiplied by the factor rate. If you get an advance of $30,000 with a factor rate of 1.5, you will need to repay $45,000 (plus any fees).
Payments for MCAs are made daily or weekly, rather than monthly, and term lengths are shorter — often 3 to 12 months. Payments are set up automatically, usually as a percentage of credit card/debit sales.
While traditional loans may come with a prepayment penalty, many merchant cash advance companies offer a discount for early payment.
Because the cost of borrowing is so high, a merchant cash advance is a risky funding option: While you're charged a factor rate, the effective annual percentage rate (APR) can be 50%, 100% or even more. There are also origination, funding, and administrative fees, which are deducted upfront.
The MCA market is also less regulated, leaving some borrowers vulnerable to predatory lenders.
Do merchant cash advances report to the credit bureaus?
Merchant cash advances don't typically report payment activity to the credit bureaus, so unfortunately, your on-time payments won't help you improve your credit score. However, if you fall behind on your payments and end up defaulting, your provider might report this to a third-party collection agency. Or, they may even file a lawsuit against you.
If your cash advance gets sent to a collection agency then this cans how up on your credit report and hurt your credit score. If a lawsuit is filed against you, it is recommended that you avoid ignoring the lawsuit because any judgments that result from this may be reported to the credit bureaus, according to Grant Phillips Law.
Merchant cash advance pros and cons
Before you apply for a merchant cash advance, consider the drawbacks and advantages.
- Funds are usually available in 24 hours
- Lenient approval requirements make it a good option if you have bad credit
- Repayment usually based on a percentage of daily transactions rather than a fixed amount
- Shorter repayment terms, usually just 3 to 12 months
- Borrowers may need to meet high revenue requirements
- Factor rate for advance can be very costly
- The MCA market is less regulated
FAQs
What's the difference between a merchant cash advance and a business loan?
A merchant cash advance and a loan both provide a business with a lump sum of capital. But rather than flat monthly installments, repayment for an MCA is based on a percentage of future sales, typically on a daily or weekly basis. Because the transaction is viewed as a sale of future revenue, an MCA won't directly impact your credit score.
MCAs are easier to get approved for and are usually funded much faster, but the cost of borrowing is significantly higher.
What is a factor rate?
Rather than an interest rate, MCA companies assign a factor rate that's fixed and expressed as a decimal (e.g., 1.2). To determine the total balance owed, the initial loan amount is multiplied by the factor rate.
Can I refinance a merchant cash advance?
Yes, you can refinance an MCA to secure lower daily payments or to extend your repayment terms. In 2025, the U.S. Small Business Administration stopped allowing SBA loans to refinance MCAs. But you can still get a business term loan or line of credit from a bank, fintech company, or non-bank lender. Some private lenders specialize in MCA debt consolidation, which gives borrowers predictable monthly payments for terms of two to five years.
If you've paid off at least 50% of your current MCA, you may also be able to refinance with another advance.
What happens if you default on a merchant cash advance?
If a business misses enough payments, the lender can sue for repayment and seize assets to recoup its investment.
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Why trust CNBC Select?
At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every small business list is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of small business products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best merchant cash advance companies.
Our methodology
To determine our picks for the best merchant cash advances, CNBC Select analyzed several U.S. merchant cash advances offered by both online and brick-and-mortar companies.
We compared each cash advance on a range of features, including:
- Minimum and maximum loan amounts
- Length of term
- Remittance frequency options
- Credit score needed
- Application requirements
- Streamlined application process
- Fund disbursement
- Customer support
- Better Business Bureau rating
- Customer reviews, when available
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