A merchant cash advance (MCA) is one of the fastest ways to access capital, and it works differently from a loan. Instead of borrowing money, you receive a lump sum today in exchange for a portion of your future sales. That distinction shapes how it’s priced and repaid.
What a merchant cash advance is
With an MCA, a funding provider gives your business a lump sum upfront in exchange for a slice of your future revenue. Technically it is not a loan — it’s the purchase of future receivables. Because of that, it’s priced and repaid on different terms than traditional financing.
How repayment works
Rather than a fixed monthly payment, you typically repay an MCA as a set percentage of your daily or weekly sales — often called a holdback. When business is busy you pay back faster; when sales slow, your payments shrink with them. Repayment continues until you’ve paid the agreed total.
That total is usually expressed as a factor rate instead of an interest rate. For example, a $50,000 advance at a 1.3 factor rate means repaying $65,000 in total. Because the cost is fixed up front rather than calculated as annual interest, an MCA can be more expensive than other options — so it’s worth comparing before you commit.
Typical amounts and terms
- Amounts: commonly $5,000 to $500,000, sized to your sales volume.
- Factor rates: often in the range of about 1.1 to 1.5.
- Repayment: a holdback percentage of daily or weekly deposits.
- Speed: among the fastest options — funding sometimes within a day of approval.
These are typical ranges for illustration, not an offer. Actual pricing depends entirely on the provider.
See real options before you decide. Comparing takes about a minute and won’t affect your credit.
Check eligibility →When an MCA makes sense
An MCA can be a fit when you:
- Need cash quickly and have steady card or bank-deposit volume.
- Have a clear, short-term use — a large order, a seasonal gap, or a time-sensitive opportunity.
- May not qualify elsewhere because of credit, but have strong, consistent sales.
Because it’s among the more expensive options, it’s best used deliberately for short-term needs rather than as ongoing financing.
What you’ll typically need
- Several months of operating history (often 6+ months).
- Consistent monthly revenue (commonly $20,000+).
- Recent business bank statements — usually the main document reviewed.
Frequently asked questions
Is a merchant cash advance a loan?
No. An MCA is the purchase of a portion of your future sales, not a loan. That’s why it’s priced with a factor rate rather than an interest rate.
How is the cost calculated?
MCAs use a factor rate. Multiply the advance by the factor rate to get the total payback — for example, $50,000 × 1.3 = $65,000.
What is a holdback?
The holdback is the set percentage of your daily or weekly sales that goes toward repaying the advance. It flexes with your revenue.
How fast can I get funded?
An MCA is often one of the fastest options, with funds sometimes arriving within a day of approval, depending on the provider.
Want to see what you qualify for? Compare options from our network in about 60 seconds — with no impact to your credit.
See my funding options →This page is for general educational purposes and is not financial advice. Access Funding Network is a free matching service, not a lender. Funding products, amounts, rates, and terms are offered solely by independent third-party providers and are subject to their underwriting. Amounts and terms shown are typical industry ranges for illustration only and are not an offer or guarantee. Not all applicants will qualify or be matched.