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7 Best Merchant Cash Advance Companies for 2024

By Randa Kriss
Last updated on September 17, 2024
Edited by Sally Lauckner
Fact checked and reviewed
The best MCA companies are transparent about their products and how they work. However, consider other types of funding before turning to a merchant cash advance.

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Merchant cash advance companies provide you with an upfront sum of capital — known as a merchant cash advance — that you repay using a percentage of your debit and credit card sales, plus fees.
Generally, you’ll want to consider all other types of small-business loans before turning to a merchant cash advance (MCA) because this product is expensive and can lead to a harmful cycle of debt. If you’re thinking about an MCA, however, it’s important to understand your options and know what to look for in a provider.

How much do you need?

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We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

Here are 7 merchant cash advance companies

LenderNerdWallet RatingMax loan amountMin. credit scoreNext steps

Expansion Capital Group Merchant Cash Advance

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Best for Borrowers with bad credit

$300,000500

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Fora Financial Revenue Advance

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Best for Startups

$1,500,000570

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Libertas Funding Revenue-Based Advance

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Best for Established businesses

$5,000,000650

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Giggle Finance Merchant Cash Advance

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Best for Self-employed individuals

$5,000300

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Credibly Merchant Cash Advance

Best for Low starting factor rates

$600,000500

Reliant Funding Merchant Cash Advance

Best for Limited revenue

$400,000525

Rapid Finance - Merchant cash advance

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Best for Low fees

$500,000600

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Here are 7 merchant cash advance companies

Best for Borrowers with bad credit

Expansion Capital Group

Max Amount

$300,000

Min. Credit Score

500

Best for Startups

Fora Financial

Max Amount

$1,500,000

Min. Credit Score

570

Best for Established businesses

Libertas Funding

Max Amount

$5,000,000

Min. Credit Score

650

Best for Self-employed individuals

Giggle Finance

Max Amount

$5,000

Min. Credit Score

300

Best for Low starting factor rates

Credibly

Max Amount

$600,000

Min. Credit Score

500

Best for Limited revenue

Reliant Funding

Max Amount

$400,000

Min. Credit Score

525

Best for Low fees

Rapid Finance

Max Amount

$500,000

Min. Credit Score

600

I'M INTERESTED IN:

Our pick for

Borrowers with bad credit

Expansion Capital Group provides funding to borrowers with a minimum credit score of 500.

Expansion Capital Group Merchant Cash Advance

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Max loan amount
$300,000
Min. credit score
500

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

Max loan amount
$300,000
Min. credit score
500

Our pick for

Startups

To qualify for a revenue advance from Fora Financial, you need a minimum of just six months in business.

Fora Financial Revenue Advance

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Max loan amount
$1,500,000
Min. credit score
570

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

Max loan amount
$1,500,000
Min. credit score
570

Our pick for

Established businesses

You need to have good credit, strong annual revenue and at least three years in business to qualify for Libertas Funding.

Libertas Funding Revenue-Based Advance

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Max loan amount
$5,000,000
Min. credit score
650

Pros

  • Large advance amounts available.
  • Flexible payment options.
  • Prepayment discounts available.

Cons

  • High credit score and annual revenue requirements compared to competitors.
  • Factor rate and fee information not available on website.
  • Charges an origination fee.

Libertas Funding Revenue-Based Advance

Max loan amount
$5,000,000
Min. credit score
650

Our pick for

Self-employed individuals

Giggle Finance offers fast funding designed specifically for freelancers, contractors, online sellers and other self-employed individuals.

Giggle Finance Merchant Cash Advance

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Max loan amount
$5,000
Min. credit score
300

Pros

  • No minimum credit score requirement.
  • Same-day funding available.
  • Specifically designed for freelancers and self-employed individuals.

Cons

  • Funding maxes out at $5,000.
  • Factor rate and fee information not available on website.
  • Charges an origination fee.

Giggle Finance Merchant Cash Advance

Max loan amount
$5,000
Min. credit score
300

Our pick for

Low starting factor rates

Credibly offers factor rates on its merchant cash advances that start as low as 1.11.

Credibly Merchant Cash Advance

Max loan amount
$600,000
Min. credit score
500

Pros

  • Prepayment discounts available.
  • No personal guarantee required.
  • Can be used to build business credit.

Cons

  • Daily repayments required.
  • Charges one-time underwriting fee and monthly admin fee.

Credibly Merchant Cash Advance

Max loan amount
$600,000
Min. credit score
500

Our pick for

Limited revenue

You may be able to qualify for an MCA from Reliant Funding with a minimum of $5,000 in monthly revenue.

Reliant Funding Merchant Cash Advance

Max loan amount
$400,000
Min. credit score
525

Pros

  • Funding available in as little as 24 hours.
  • Low annual revenue requirement.
  • Daily or weekly repayment available.

Cons

  • Factor rate and fee information not available on website.

Reliant Funding Merchant Cash Advance

Max loan amount
$400,000
Min. credit score
525

Our pick for

Low fees

Rapid Finance does not charge an origination fee, maintenance fees or prepayment penalties.

Rapid Finance - Merchant cash advance

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Max loan amount
$500,000
Min. credit score
600

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

Max loan amount
$500,000
Min. credit score
600

How Much Do You Need?

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How to choose a merchant cash advance company

You’ll want to research and vet several merchant cash advance companies before deciding which one is right for your business.
Some MCA companies have been criticized for confusing contracts and misleading sales tactics — leading businesses to fall victim to cycles of expensive debt that are difficult to break.
Although some states have taken legal action to require transparency from MCA companies in recent years, predatory lenders still try to take advantage of business owners, promising things like “guaranteed approval” or “business loans with no credit check.”
Not all merchant cash advance companies are bad actors, but it’s important to watch for red flags — and look elsewhere if an offer doesn’t seem right.
As you compare MCA providers, consider these factors:

What is a merchant cash advance?

A merchant cash advance is an alternative form of business financing based on a business’s credit and debit card sales. A merchant cash advance company offers a lump sum of money to businesses in exchange for a portion of their future sales revenue. Advances can range from a few thousand dollars to $5 million or more.
Merchant cash advances are also referred to as business cash advances and business payday loans.

How does a merchant cash advance work?

Automatic repaymentsBorrowers 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 ratesMCA 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 feesIn 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 lengthsTerm 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

🤓 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.

How to improve your chances of getting traditional financing

Review your credit history
Reviewing your personal and business credit reports for accuracy and then removing errors or outdated information can often help raise your credit scores.
There are also steps you can take to build your business credit score that may make it easier to get financing other than an MCA. This may include applying for an employer identification number, setting up trade credit with your suppliers or applying for a business credit card.
Offer collateral
A borrower who offers collateral — an asset such as equipment, a vehicle or real estate — may find it easier to get approved by a lender. Lenders look to minimize the chances that a loan won’t be repaid. They assess risk based on a borrower’s credit, time in business, business revenue and other factors. The lender’s risk can be lowered by offering an asset that can be seized if you default on the loan.
Add a cosigner
If you’re having difficulty getting approved for traditional financing, adding a cosigner may help you avoid MCA financing. When someone agrees to be a cosigner on a business loan, they agree to make payments on the loan if you don’t. Having two guarantors on a loan can reduce the risk to the lender and improve your chances of getting approved.
A cosigner with excellent credit, strong income and assets would typically work to your benefit when applying for a loan. But remember that if you default on the loan, the cosigner’s finances will be affected along with your own.

Alternatives to merchant cash advance companies

It’s worth exploring other options besides merchant cash advances, which can include:
Last updated on September 17, 2024

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.

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