How to Qualify for a Merchant Cash Advance: FAQ
Qualifying for an MCA: what funders look for.
Funders mostly look for steady monthly deposits, enough time in business, a manageable number of open advances and few overdrafts. Every funder sets its own limits, so a decline from one says little about the next. That's why we match your file to the funders whose programs fit.
Matching answers appear below as you type. Use the down arrow to move through them.
Qualifying
What funders look for, and what makes a file harder to place.
What do funders look for to approve an MCA?
Funders mostly look for steady monthly deposits, enough time in business, a manageable number of open advances and few overdrafts or negative days. Credit matters less than it does with a bank, but it still counts. Each funder sets its own limits, so a decline from one says little about the next, and matching your file to the right funder matters.
Read more: Funder fit checker
How long do I need to be in business?
It depends on the funder. Many want several months of deposit history, and some want a year or more. A newer business with strong, steady deposits can still fit some programs. The funder is buying your future sales, so it needs enough past sales to judge them. Send every full month of statements you have.
Read more: Documents funders ask for
How much monthly revenue do I need?
Each funder sets its own minimum, and the size of any advance follows your deposits. Nobody can promise an amount before reading your statements. Apply, and we match your file to funders whose revenue limits fit, so you don't lose time with programs that were never going to say yes to your business.
Read more: Funder fit checker
How much can I get from an MCA?
Offers are sized to a share of your average monthly deposits and the payments you already carry. The funder sets the amount after reading your statements, and a first advance is often smaller than later ones. Ask only for what the business can repay from sales without squeezing rent and payroll.
Read more: MCA payment calculator
Can a startup get an MCA?
It's hard with no deposit history, because the funder is buying future sales and needs past sales to judge them. Once you have a few months of steady deposits in a business account, more funders will look. Before that, a business credit card, equipment financing or a small SBA loan may be a better place to start.
Read more: MCA documents FAQ
Can I get an MCA if I don't take many card sales?
Yes. Most advances are repaid by fixed debits from your business bank account, so funders read all your deposits, not just card sales. Cash, checks, ACH payments and transfers from customers all count if they're real sales. A split through your card processor is only one way to repay, and many files never use it.
Read more: How a merchant cash advance works
I was declined somewhere else. Can I still apply?
Yes. Funders run different programs, so a decline from one isn't a decline from all. Tell us why you were declined, whether it was time in business, revenue, credit or open advances, and we'll send your file only to funders who take that kind of file. Being upfront about the earlier decline saves everyone time.
Read more: MCA for bad credit
Do overdrafts or NSFs hurt my chances?
They can. Funders count negative days and returned items as signs of cash strain, and too many can end a review. A short note explaining one bad month helps, like a slow season or a customer who paid late. A few clean months help more, so sometimes waiting a month or two gets you a better offer.
Read more: Documents funders ask for
Can a sole proprietor or home-based business get an MCA?
Often, yes, if your sales run through a business bank account. Some funders prefer an LLC or a corporation, and some want a business tax ID. Keeping business sales in their own account makes the file far easier to read. Home-based businesses qualify too, as long as the business and its deposits are real.
Read more: MCA documents FAQ
Can I qualify with a tax lien or a judgment?
Some funders take files with a tax lien or a judgment, especially when there's a payment plan in place and it's current. Tell us up front. A lien or judgment found late in the review can end an offer, while one disclosed early can be matched to a funder whose program accepts it.
Read more: UCC liens and MCAs
I own more than one business. Can each one get an advance?
Usually each business is reviewed on its own deposits, and funders also look at what the owner already owes across all of them. A payment problem at one business can affect an offer for another. Keep each business's sales in its own bank account, and tell us about open advances on any of them.
Read more: MCA stacking FAQ
Still have a question?
Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.