Question 1

What is a Merchant Cash Advance (MCA)?

Accepted Answer

A Merchant Cash Advance (MCA) is a type of business funding where you receive a lump sum of cash in exchange for a percentage of your future credit card or debit card sales. Unlike traditional loans, MCAs do not have fixed monthly payments—repayment is based on your daily or weekly sales, making it a flexible option for businesses with fluctuating revenue.

Question 2

How is a Merchant Cash Advance different from a traditional loan?

Accepted Answer

Unlike traditional bank loans, which have fixed monthly payments and require strong credit history, MCAs are based on your business’s revenue. Repayment is automatically deducted from your sales, and the approval process is much faster—often within 24 to 48 hours—making it an ideal solution for businesses that need quick funding.

Question 3

What are the eligibility requirements for an MCA?

Accepted Answer

Eligibility for a Merchant Cash Advance is primarily based on your business’s sales volume rather than credit scores. Generally, to qualify, businesses should have:
 • A consistent flow of credit card or debit card transactions
 • At least 3-6 months in business
 • A minimum monthly revenue (varies by provider)

Question 4

How much funding can I receive with an MCA?

Accepted Answer

The amount of funding you can receive depends on your business’s average monthly revenue. Most MCA providers offer advances ranging from $5,000 to $500,000. The funding amount is typically based on a percentage of your monthly sales, ensuring that repayment aligns with your business’s cash flow.

Small Business Loans

Spring Funding Group