The best merchant cash advance (MCA) companies will offer funding in less than 72 hours. While this type of financing is expensive and one that we only recommend as a last resort, rates and fees should still be competitive when compared to other providers. The best MCA providers should also have a combination of flexible loan terms and easy qualification requirements.
Here are the seven best merchant cash advance companies:
- Lendio: Best overall for rates, terms, and multiple loan options
- Credibly: Best for easy documentation requirements
- Sunwise Capital: Best for same-day and custom funding options
- Reliant Funding: Best for low-revenue businesses
- Fora Financial: Best for newer businesses with large funding needs
- GoKapital: Best for high-risk industries
- Libertas Funding: Best for high-revenue businesses seeking flexible repayment options
Lendio: Best Overall for Rates, Terms & Multiple Loan Options
Why We Like Lendio
We selected Lendio as the best overall for merchant cash advances because of its combination of competitive rates, terms, and qualification requirements. If you’re looking for this specific type of financing, it’s labeled as a business cash advance on Lendio’s website.
As a broker, Lendio has a network of more than 75 lenders. This improves your odds of not only getting approved but also at receiving the best available rates and terms. Lendio assigns a dedicated funding specialist to each loan application to learn about your unique needs to match you with a lender best suited for your circumstances.
From a cash flow perspective, borrowers should know that when they get an MCA with Lendio, payments must be made daily. Payment amounts are also based on a percentage of your credit card sales, rather than a fixed monthly amount on a traditional loan.
To expedite the process of getting approved and funded, we recommend having four to six months of business bank statements. To apply, visit the Lendio website, where applications should take no more than 15 minutes to complete.
Credibly: Best for Easy Documentation Requirements
Why We Like Credibly
Credibly is an excellent option if you want to get funding without the requirement to provide a hefty amount of paperwork. Most applicants will only have to provide the following items:
- Signed receivable purchase agreement
- Business mortgage statement or lease agreement
- Government-issued identification for all business owners
- Most recent three months’ business bank statements
- Most recent business tax return (for advances of more than $100,000 only)
An added perk of working with Credibly is that it has the third-lowest starting rate of those in our guide. However, it does also charge a one-time underwriting fee of 2.5% and a $50 monthly administrative fee.
To get started, you can visit the Credibly website. There, you can get prequalified and receive approval in as soon as four hours. You’ll then have a chance to speak with a member of the team to discuss your financing options. Once approvals are issued, you could also receive same-day funding.
Sunwise Capital: Best for Same-day and Custom Funding Options
Why We Like Sunwise Capital
If you need funding quickly, Sunwise Capital is an excellent option. Its team can issue decisions in minutes, with a few hours needed for funding. It can also offer flexible, tailored funding solutions for your specific needs.
For instance, while most MCAs require daily or weekly repayment, Sunwise Capital may allow for monthly repayments for well-qualified businesses. The lender also provides better rates and terms for those with an established relationship with the bank with its other products and services.
It allows proceeds from an MCA to be used for a wide range of business purposes. Some examples include covering costs of new hires, equipment, inventory, renovation, and building upgrades. It also has flexibility with regard to approval criteria, as it will accept up to a 3rd lien position, in addition to businesses with liens up to $200,000 as long as a payment plan is established.
To apply, you can visit the Sunwise Capital website where applications can be completed in under five minutes.
Reliant Funding: Best for Low-revenue Businesses
Why We Like Reliant Funding
Out of the individual providers on our list, Reliant Funding has the lowest annual revenue requirement. It also requires six months’ time in business, making it a viable option for newer businesses that may not yet have large streams of revenue.
With it, you can work with a dedicated account manager. This individual’s role is designed to not only understand your needs to ensure an MCA is the right choice but to also provide you with personalized recommendations and guide you through the lending process to get you funded as quickly as possible.
Paying back a Reliant Funding MCA can be done on a daily or weekly basis. By comparison, most other MCA companies limit you to daily repayments. There are no restrictions on what business purpose you can use the funds for. Another benefit of working with Reliant Funding is the ability to get more funding once you have paid off 50% of the original balance owed.
To learn more, you can visit the Reliant Funding website and contact the company using its toll-free number. It also accepts online applications with no upfront costs, credit checks, or obligation to accept any loan offer.
Fora Financial: Best for Newer Businesses With Large Funding Needs
Why We Like Fora Financial
Fora Financial can offer the largest funding amount with the shortest time in business requirement, making it our pick for newer businesses that need more funds. With six months’ time in business, you could get an advance as high as $1.5 million.
With this provider, funds from its cash advance product can be used for nearly any business expense. Some examples include buying equipment, purchasing more inventory, and conducting renovations to office space. Popular industries Fora Financial works with include those in services, construction, restaurants, retail, and medical fields.
It offers you the ability to borrow additional funds once you’ve paid at least 60% of the original loan. This makes it a good option if you have recurring needs for additional funding. As an incentive to pay off your balance more quickly, prepayment discounts are also available.
If you’re uncertain about whether you’ll qualify, you can apply with no negative impact on your credit score. Fora Financial only conducts a soft credit inquiry at the time of the initial application, and a full check is only done upon approval. To apply, visit the Fora Financial website.
GoKapital: Best for High-risk Industries
Why We Like GoKapital
If you have been having trouble getting funding due to the industry you operate in, GoKapital may be able to help. It states that all industries qualify for financing—and this includes cannabis, funeral homes, and those involved in firearm sales.
One potential downside with GoKapital is that its funding speeds are slightly slower than the other lenders we’ve selected for this guide. However, it is competitive when it comes to its rates, terms, and qualification requirements. For instance, it offers the largest funding amount out of the MCA companies we chose, has no restrictions on what funds can be used for, and has flexible eligibility criteria that even allow funding for businesses with active tax liens.
Another benefit of getting an MCA with GoKapital is the flexibility to make payments on a weekly basis, rather than daily. This can help your business’ cash flow depending on when you receive income from sales and other sources of revenue.
The provider does not list a minimum amount of revenue your business must earn to be eligible. However, it does state that approvals can be made for up to 50% to 150% of your average monthly sales. To apply or learn more, visit the GoKapital website.
Libertas Funding: Best for High-revenue Businesses Seeking Flexible Repayment Options
Why We Like Libertas Funding
Libertas Funding can offer some of the most flexible repayment terms available. While many of the best merchant cash advance lenders require payments to be made daily, Libertas Funding may allow you to make payments on a weekly, bi-weekly, and even monthly basis. This is something that can help your business from a cash flow perspective.
As with most MCAs, the rate and pricing you get will depend on your business qualifications and characteristics. This can include the industry you are in and your time in business, personal credit score, business credit, and business finances.
Getting an MCA with Libertas Funding can be more difficult, as it has the highest requirements for credit score and revenue. With that said, eligible businesses can get perks that are not found at most other companies. In addition to the flexible repayment schedules mentioned previously, you could get a prepayment discount of up to 25% by paying off your balance more quickly. Renewal options are also available.
To apply or learn more, visit the Libertas Funding website.
How We Chose the Best Merchant Cash Advance Companies
The best merchant cash advance lenders were selected using the following criteria:
- Factor rates, fees, and estimated APRs
- Application, approval, and funding speed
- Flexibility of repayment terms and repayment schedules
- Qualification requirements, such as credit score, revenue, and time in business
- Availability of discounts, such as prepayment discounts
- Funding amounts offered
- Customer reviews and ratings
Alternatives to a Merchant Cash Advance
In most cases, MCAs should be considered a last resort for business owners who cannot get approved for other types of financing as it’s an expensive form of financing. If you need to get a small business loan, you should also consider the following types of business loans:
- Accounts receivable (A/R) financing: This type of loan allows you to borrow against invoices you have issued to clients but haven’t yet been paid. It can cost as little as 0.25% per week and provide up to $5 million in funding. You can view our list of the best A/R financing companies to find the lender best suited for your funding needs.
- Invoice factoring: Although similar to A/R financing, invoice factoring has your clients pay the outstanding invoices to a factoring company instead of to your business. You can typically get an advance of up to 80% of the invoice amount. Once the factoring company receives payment, it’ll distribute the funds to you, minus its fees. For more details, you can read our guide on how invoice factoring works.
- Working capital loan: These loans can give you the funding needed to cover daily expenses such as payroll, rent, and other operational costs. Working capital loans can be structured in different ways, including term loans and lines of credit. You can view our recommendations for the best working capital loans to get started.
- Small business line of credit: This is a revolving line of credit that you can access on an as-needed basis. Repayment terms are usually less than 24 months, and qualified businesses can get credit limits of up to $250,000 or more. For more details, you can read our guide on what a business line of credit is and how it works.
- Small business credit card: Credit cards can be a good option for small and medium expenses. Credit limits are commonly issued between $5,000 and $25,000 and up, with some providers offering introductory rates as low as 0%. See our roundup of the best small business credit cards for options.
For tips and recommendations on improving your approval odds and how to qualify for the best rates possible, check out our guide on how to get a small business loan.
Frequently Asked Questions (FAQs)
An MCA company is a provider that offers a business financing product, allowing companies to receive a lump-sum advance payment in exchange for a fixed percentage of their daily credit card receipts. MCAs are an expensive form of credit and should only be used as a last resort by businesses that cannot qualify for other forms of financing.
The factor rate charged by an MCA company plus any one-time or recurring fees will determine your total cost of borrowing funds. You can take your factor rate and multiply it by the amount of your advance to determine how much you must pay back for the advance to be considered paid in full.
An MCA should be used as a last resort. This is because it is a very expensive form of financing, with APRs often exceeding 100%, and MCAs also rarely offer early payment discounts. Since MCA companies expect payment to be made quickly, it can negatively impact your business cash flow.
Bottom Line
An MCA is an expensive form of financing. Before choosing to get an MCA, consider using our MCA calculator to see how much it would cost, and consider the alternatives we’ve mentioned above. If you’ve decided that an MCA is right for you, the providers listed in this guide can provide competitive rates, terms, and a high level of customer service.
