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6 Best Merchant Cash Advance Companies for 2024

By Randa Kriss
Last updated on July 3, 2024
Edited bySally 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 that you repay using a percentage of your debit and credit card sales, plus fees — otherwise known as a merchant cash advance (MCA).
Generally, you’ll want to consider all other types of small-business loans before turning to an MCA because this product is expensive and can lead to a harmful cycle of debt. If you’re thinking about a merchant cash advance, however, it’s important to understand your options and know what to look for in a provider.
Here are our picks for merchant cash advance companies as well as tips to help you choose the best provider for your needs.

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 6 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

Here are 6 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

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 or higher.

Expansion Capital Group Merchant Cash Advance

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Max Loan Amount
$300,000
Min. credit score
500
Expansion Capital Group can provide fast and easy financing for newer businesses and borrowers with bad credit.

Max loan

$300,000

Min. Credit score

500

Expansion Capital Group can provide fast and easy financing for newer businesses and borrowers with bad credit.

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Our pick for

Startups

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

Fora Financial Revenue Advance

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Max Loan Amount
$1,500,000
Min. credit score
570
Fora Financial has flexible qualification requirements and can offer large advance amounts.

Max loan

$1,500,000

Min. Credit score

570

Fora Financial has flexible qualification requirements and can offer large advance amounts.
Read Review

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Our pick for

Established businesses

Libertas Funding requires that you have good credit and strong annual revenue to qualify.

Libertas Funding Revenue-Based Advance

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Max Loan Amount
$5,000,000
Min. credit score
650
Libertas can offer same-day funding for borrowers with good credit and strong business revenue.

Max loan

$5,000,000

Min. Credit score

650

Libertas can offer same-day funding for borrowers with good credit and strong business revenue.

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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
Giggle Finance provides capital to freelancers, contractors and self-employed individuals.

Max loan

$5,000

Min. Credit score

300

Giggle Finance provides capital to freelancers, contractors and self-employed individuals.

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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
Credibly offers fast, flexible funding with low starting factor rates.

Max loan

$600,000

Min. Credit score

500

Credibly offers fast, flexible funding with low starting factor rates.

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
You may be able to qualify for next-day funding from Reliant, even with bad credit or limited revenue.

Max loan

$400,000

Min. Credit score

525

You may be able to qualify for next-day funding from Reliant, even with bad credit or limited revenue.

How Much Do You Need?

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How to choose a merchant cash advance company

If you’re looking for a merchant cash advance, you’ll want to research and vet several companies before deciding which one is right for your business.
Some merchant cash advance companies have been criticized for confusing contracts and misleading sales tactics — leading businesses to fall victim to predatory lenders and 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, bad actors 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 predatory, but it’s still important to watch for red flags — and look elsewhere if an offer doesn’t seem right.
As you compare MCA providers, consider these factors:

Funding availability

Merchant cash advance companies will have different maximum funding amounts. You should confirm that the provider’s requirements are in line with what you’re looking for. Some MCA companies also offer other more traditional types of financing like term loans and lines of credit. If you think you might be able to qualify for other options, you might explore those as well.

Costs of borrowing

MCAs are one of the most expensive forms of business financing with APRs that can potentially reach 350%. MCA companies charge fees as factor rates instead of annual percentage rates or simple interest rates which can make it more difficult to understand borrowing costs.
You can translate a factor rate into an APR by using an MCA calculator. Also, ask the merchant cash advance company if it charges additional fees — like underwriting fees or setup fees, for example — and include those in your APR calculations as well.

Repayment options

Automatic deductions from your debit and credit card sales or withdrawals from your business bank account are your typical repayment options. If you have a preference, confirm that the option is offered by the provider.
Providers often require daily or weekly repayments, but in some cases you may find a provider that offers biweekly or monthly repayments or l will let you choose a frequency that works best for your business.

Qualification requirements

Compared with more traditional small-business lenders, merchant cash advance companies typically have flexible eligibility requirements. These companies will consider your personal credit score, time in business and annual revenue — but they’ll often be willing to work with startups and businesses facing credit challenges.
Many companies will also prioritize your debit and credit card sales or monthly bank activity when underwriting your application because you’ll be using your sales to repay your advance. Typically, the stronger your credentials, the lower the factor rate you’ll receive on funding.

Speed and application process

Most MCA companies offer simple applications with minimal documentation. You can usually apply and receive funding within a few business days. Some providers offer dedicated account managers to walk you through the process, which could be helpful if you prefer a more personalized experience.

Transparency and lender reputation

You’ll want to look for a merchant cash advance company that is upfront about its products and the way they work. Ideally, the company offers multiple ways for you to contact customer service — and you receive straightforward answers to your questions.
If you receive an MCA agreement from a provider, it should clearly lay out terms and conditions, fees and repayment information. In addition to talking to the company, reading reviews and reaching out to other business owners can help you verify the reputation and reliability of a merchant cash advance company.

Confession of judgment

Many MCA companies request or require you to sign a confession of judgment at closing, which is an agreement that allows an MCA company to file a judgment against you in court without letting you know. If you can, find out if your MCA company requires this document before you move forward with an application. If it is a requirement, that alone may be a reason to look elsewhere.

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. Monthly card sales are a major factor used by MCA companies to determine the amount of cash advances given to a business. Also, the repayment of advances is often set up as deductions from the business’s card sales.

How does a merchant cash advance work?

A merchant cash advance company offers a lump sum of money — called a merchant cash advance — 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.
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, but, in some cases, may be biweekly or monthly, depending on your business and the MCA company.
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).
In addition to a factor rate, you may also pay charges such as underwriting, administration, setup or service fees. And some MCA lenders — Fora Financial and Libertas Funding, for example — offer prepayment discounts if you repay the advance early.
Term lengths vary by lender, but generally run from three to 24 months. And, in some cases, the MCA company may advance you additional funds if you’ve paid off a portion of the original advance.

Where to get a merchant cash advance

There are companies that specialize only in MCA products while others offer it in addition to other types of lending options.

Merchant cash advance companies

Some companies simply focus on offering MCA products, as is the case with Expansion Capital Group and Giggle Finance. While these companies often work with a variety of small businesses, there are some types of businesses they won’t work with. And other MCA companies may choose to offer their services to specific groups. For example, Giggle Finance offers its services to independent contractors and self-employed individuals.

🤓 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.

Online lenders

Some online lenders offer MCA as well as other traditional lending products such as long-term loans, business lines of credit, SBA loans and equipment financing. Credibly is an example of a lender that offers business loans in addition to alternative forms of financing such as MCA and invoice factoring.

Alternatives to merchant cash advance companies

It’s worth exploring other options besides merchant cash advances, which can include:

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 that may be dragging down your credit score 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 lines 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. Also, remember that if you default on the loan, the cosigner’s finances will be affected along with your own.
Compare a variety of lenders
You should compare a number of lenders, including different types of lenders, before settling on MCA financing. Banks generally offer the best loan terms, but can also be difficult to qualify for. However, that doesn’t mean they all have the same requirements. For example, U.S. Bank’s Quick Loan is available to businesses that have been in operation for a minimum of six months. Other banks require two years in business.
If you can’t find bank financing, the requirements for SBA loans typically offer a little more flexibility. Online lenders would be your next option if you can’t qualify for a bank or SBA loan because of your credit score or lack of time in businesses.
Last updated on July 3, 2024

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