Here are 6 best merchant cash advance companies
Lender | NerdWallet Rating▼ | Max loan amount▼ | Min. credit score▼ | Next steps |
---|---|---|---|---|
Forward Financing - Merchant cash advance with Fundera by NerdWallet | Best for bad credit | $300,000 | 500 | with Fundera by NerdWallet |
Fora Financial - Revenue advance | Best for strong revenue | $1,500,000 | 570 | with Fundera by NerdWallet |
Giggle Finance - Merchant cash advance | Best for self-employed individuals | $10,000 | 300 | with Fundera by NerdWallet |
Rapid Finance - Merchant cash advance | Best for low fees | $500,000 | 600 | with Fundera by NerdWallet |
Fundomate- Business funding | Best for flexible repayment | $500,000 | 600 | with Fundera by NerdWallet |
Expansion Capital Group - Merchant cash advance | Best for startups | $300,000 | 500 | with Fundera by NerdWallet |
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Our pick for
bad credit
Forward Financing is an MCA company that provides funding to borrowers with a minimum credit score of 500. If approved, you may be able to receive funds the same day that you sign your agreement.
Forward Financing - Merchant cash advance
Pros
- Can be approved for financing within the same business day.
- Simple application process with minimum documentation.
- Can be used to build business credit.
- No prepayment penalties.
Cons
- Daily or weekly payments required.
- Charges an origination fee.
Forward Financing - Merchant cash advance
Pros
- Can be approved for financing within the same business day.
- Simple application process with minimum documentation.
- Can be used to build business credit.
- No prepayment penalties.
Cons
- Daily or weekly payments required.
- Charges an origination fee.
- Minimum credit score: 500.
- Minimum time in business: 12 months
- Minimum annual revenue: $120,000.
Our pick for
strong revenue
To qualify for an MCA from Fora Financial, you need a minimum credit score of 570, six months in business and $20,000 in monthly revenue. Fora offer advances up to $1.5 million, with the ability to borrow more once you've repaid at least 60%.
Fora Financial - Revenue advance
Pros
- Large advance amounts available.
- No physical collateral required.
- Prepayment discounts available.
Cons
- Charges one-time processing fee.
- UCC lien may be required.
Fora Financial - Revenue advance
Pros
- Large advance amounts available.
- No physical collateral required.
- Prepayment discounts available.
Cons
- Charges one-time processing fee.
- UCC lien may be required.
- Minimum credit score: 570.
- Minimum time in business: Six months.
- Minimum annual revenue: $240,000 ($20,000 per month in revenue).
- Factor rates range from 1.13 to 1.28; vary based on product details and your qualifications.
Our pick for
self-employed individuals
Giggle Finance offers fast funding designed specifically for freelancers, contractors, online sellers and other self-employed individuals. There is no minimum credit score requirement to qualify.
Giggle Finance - Merchant cash advance
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
Giggle Finance - Merchant cash advance
Pros
- No minimum credit score requirement.
- Same-day funding available.
- Specifically designed for freelancers and self-employed individuals.
Cons
- Funding maxes out at $10,000 ($20,000 for repeat customers).
- Factor rate and fee information not available on website.
- Charges an origination fee.
- Minimum credit score: All credit scores may be accepted (ranging from 300 to 850).
- Minimum time in business: Three months.
- Minimum annual revenue: $18,000.
Our pick for
low fees
Rapid Finance does not charge an origination fee, maintenance fees or prepayment penalties, which can help bring down the overall cost of financing. Factor rates can be as low as 1.12.
Rapid Finance - Merchant cash advance
Pros
- No prepayment penalties or other fees.
- Can be approved with a credit score as low as 600.
Cons
- Daily or weekly payments.
- Lengthy time in business requirement.
Rapid Finance - Merchant cash advance
Pros
- No prepayment penalties or other fees.
- Can be approved with a credit score as low as 600.
Cons
- Daily or weekly payments.
- Lengthy time in business requirement.
- Minimum credit score: 600.
- Minimum time in business: Three years.
- Minimum revenue requirement: $10,000 per month.
Our pick for
flexible repayment
Fundomate offers a daily, weekly or biweekly repayment schedule. Additionally, if you can pay your advance back ahead of schedule, prepayment discounts are available.
Fundomate- Business funding
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
Fundomate- Business funding
Pros
- Cash can be available in as little as 24 hours.
- Can get a discount for prepaying your loan.
Cons
- Rates can be high compared with traditional banks.
- May have to pay an origination fee.
- Minimum credit score: 600.
- Minimum time in business: 12 months.
- Minimum annual revenue: $120,000.
Our pick for
startups
You may be able to qualify for an MCA from Expansion Capital with a minimum of $8,333 in monthly revenue, a credit score of 500 and six months in business, making it a good choice for startup businesses with limited revenue.
Expansion Capital Group - Merchant cash advance
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
Expansion Capital Group - Merchant cash advance
Pros
- Simple application with minimal documentation required.
- Low minimum credit score requirement.
- Daily or weekly repayment available.
- Offers prepayment discounts.
Cons
- Business assets required as collateral in some cases.
- Factor rate and fee information not available on website.
- Charges an origination fee and a monthly servicing fee.
- Minimum credit score: 500.
- Minimum time in business: Six months.
- Minimum annual revenue: $100,000.
How to choose a merchant cash advance company
🤓 Nerdy Tip
Reputable MCA companies are transparent about how their products work. This includes being upfront about the factor rate you will receive, additional fees they charge and repayment requirements for the advance. You shouldn’t feel pressured to sign an MCA agreement, especially if you don’t have a clear understanding of your obligations under the contract.What is a merchant cash advance?
How does a merchant cash advance work?
- Automatic repayments. Borrowers are typically set up for automatic repayments through a percentage of their debit and credit card sales or withdrawals from their business bank account. These payments are typically made daily or weekly.
- Factor rates. MCA companies charge a factor rate instead of an interest rate. For example, an advance of $50,000 with a factor rate of 1.2 would require a total repayment of $60,000 ($50,000 x 1.2 = $60,000).
- Additional fees. In addition to a factor rate, you may also pay charges such as underwriting, administration, setup or service fees. And some MCA lenders offer prepayment discounts if you repay the advance early.
- Term lengths. Term lengths vary by lender, but generally run from three to 24 months. In some cases, the MCA company may advance you additional funds if you’ve paid off a portion of the original advance.
How to improve your chances of getting traditional financing
Alternatives to merchant cash advance companies
Wondering if you qualify?
It’s possible to get a business loan even if you have bad credit. Bad-credit business loans are available from alternative sources, like online or nonprofit lenders.