A merchant cash advance can help you access funds quickly. This is an alternative to term loans that pulls from your daily credit card sales to repay your loan. A merchant cash advance may be an option if you need access to capital immediately and are willing to accept the trade-offs, such as higher interest rates and having a portion of your card transactions taken out. Our team of financial experts reviewed and ranked the top online lenders to help you get funded.
Best Merchant Cash Advance Providers
Merchant cash advances can give you near-instant access to cash and provide funding for emergency situations. However, they can be expensive and carry a certain amount of risk.
Written by:Brian T. O'Connor
Our Top Picks for Best Merchant Cash Advance Providers
- Ideal for plenty of industries
- Approval not solely credit based
- Early payoff discounts
- Simple application process
- As soon as same day funding
- Open to high-risk industries
- Connections to multiple lenders
- Competitive rates
- Soft credit check
How to Choose the Best Merchant Cash Advance Lender?
There are several aspects to a merchant cash advance you should consider, especially when it comes to picking the best lender. These factors can help you make the right decision and are the basis for our recommendations.
Best Merchant Cash Advance Companies - Full Overview
There are numerous merchant cash advance companies waiting to finance your business. Here are some of the top options available.
1. Fora Financial - Best for Fast Financing
Fora Financial is a fintech lender that offers small- and medium-sized businesses with merchant cash advances and short-term business loans. Their merchant cash advances range from $5,000 to $500,000, depending on your eligibility. Fora Financial usually takes only 24 hours to approve loan applications, making it quick and easy to tap into the financing you need without waiting to receive funds.
Pros
Cons
Fora Financial’s merchant cash advances come in a variety of amounts and early repayment discounts. There are also fees associated with borrowing, in addition to the factor rate, that you have to consider. Fora Financial is among the more lenient lenders in terms of credit, however, which may make additional fees a trade-off for getting financing.
Features
Loan Type | Loan Features |
Term Length | N/A |
Repayment Period | Monthly |
APR | Varied |
Min-Max Amount | $5,000 - $500,000 |
Borrowing Fee | 10-30% of the loan |
Origination Fee | Up to 2.5% |
Late Payment Fees | $35 |
Minimum Annual Revenue | $180,000 |
Minimum Time in Business | 6 months |
Interest Rate | Factor 1.1 - 1.3 |
Early Repayment Discounts | Yes |
The Bottom Line
Fora Financial is a solid option for small business owners who need access to financing quickly, and for whom credit may be an issue. The application process is quick and the threshold for qualification is modest, which may make it a good fit for you.
Try Fora Financial
Read the full Fora Financial review for more details.
2. Credibly - Best for Customer Service
Credibly has been providing small businesses with financing since 2010, and has built a reputation for reliability and customer service in the years since. We give Credibly high marks for their customer service, which you might want when navigating Merchant Cash Advance repayments or to answer other questions.
Pros
Cons
Credibly offers a wide amount of money for their advances, capping out at $400,000. Their factor rates begin at 1.5 but may be higher depending on your application. Credit score requirements are relatively low, with a credit score of 500 or higher. You’ll have to make at least $180,000 annually to qualify, and have been in business for at least six months.
Features
Loan Type | Loan Features |
Term Length | 3-18 months |
Repayment Period | Daily |
APR | From 1% |
Min-Max Amount | Up to $400,000 |
Borrowing Fee | No borrowing fee |
Origination Fee | 2.5% of the total loan amount |
Late Payment Fees | Not disclosed |
Minimum Annual Revenue | $180,000 |
Minimum Time in Business | 6 months |
Interest Rate | Factor rates from 1.15% |
Early Repayment Discounts | Yes |
The Bottom Line
Credibly is a good option for borrowers who have decent credit, can demonstrate at least $15,000 in monthly income, and for whom the APR and factor rate is an acceptable financial tradeoff for getting funds the same day as approval. This lender excels at offering customer service and competitive terms for merchant cash advances, making them a great option to consider.
Try CrediblyRead the full Credibly review.for more details.
3. Fundera - Best for Lender Marketplaces
Fundera is not a merchant cash advance provider. Rather, Fundera pairs small business owners with financing companies to help them get money they need to operate or grow their company. With Fundera, you can pursue loan options with one of the company’s lending partners, and get help from the Fundera team along the way. Fundera can help you get a variety of financing options, including merchant cash advances. You’ll see your options after completing a brief survey that covers your business’ information and your credit history.
Pros
Cons
The features of merchant cash advances available through Fundera vary. The company is not a lender, as we’ve discussed. You can, however, use Fundera to compare loan terms, amounts, factor rates, revenue requirements, and more. You won’t have to manually enter this and other information on several lender applications—rather, you’ll only need to provide it once to get the financing process started.
Here are some of the usual terms you might expect on a Fundera merchant cash advance, however.
Features
Loan Type | Loan Features |
Term Length | 3-6 months |
Repayment Period | Daily or weekly — usually around 15% of card sales |
APR | Factor rates between 1.15 and 1.48 percent |
Min-Max Amount | $2,000 - $500,000 |
Borrowing Fee | Varies |
Origination Fee | Between 1% and 5%, depending on the loan |
Late Payment Fees | Between 5% - 10% of the month’s missed payment |
Minimum Annual Revenue | $180,000 |
Minimum Time in Business | 6 months |
Interest Rate | Factor rates between 1.15 - 1.48 |
Early Repayment Discounts | Varies |
The Bottom Line
Fundera can be a great place for small business owners to begin looking for financing. The company has a reputation for helping customers pair with the right lenders—not just to get commissions from their partners, but to put customers’ financial interests at heart as well.
Try FunderaRead the full Fundera review for more details.
4. Torro - Best for New Businesses
Torro’s Business Capital loan functions as a merchant cash advance. This product provides businesses with six or more months in operation with the financing they need, and quickly. So long as you have monthly revenue of $10,000 or more you are likely on your way toward approval. Torro doesn’t provide as much information about the loans—such as the terms and fees you might encounter—until providing you with an offer. That said, there are some broad-strokes details that they do offer publicly.
Pros
Cons
Torro’s loan terms vary from lender to lender, which means you may get different offers with different features. Credit score requirements tend to be low for Business Capital loans, so long as you can prove your monthly revenue and that you’ve been in business for half a year or longer.
Features
Loan Type | Loan Features |
Term Length | 12-48 months, or until the loan is paid off |
Repayment Period | Varies |
APR | Up to 35% |
Min-Max Amount | Up to $575,000 |
Borrowing Fee | Varies |
Origination Fee | Between 1% and 5%, depending on the loan |
Late Payment Fees | 5% |
Minimum Annual Revenue | $120,000 |
Minimum Time in Business | 6 months |
Interest Rate | 1.49 factor rate (maximum) |
Early Repayment Discounts | Not disclosed |
The Bottom Line
Torro can be a solid option if getting money fast, despite bad credit, is a must. You’ll have to pay for the privilege, but this might be a good option if you don’t have other avenues for getting the cash you need to operate your business.
Try TorroRead the full Torro review for more details.
5. Lendio - Best for Simple Application
Lendio is another financing platform that helps customers and lenders connect. You don’t get financing from Lendio itself, but rather from one of its partners. Lendio helps you partner with the right lenders from its network based on the information you provide about your business. One of Lendio’s biggest draws is how easy it is to apply. You can get started with Lendio with only a minimal amount of information about your business. What you qualify for will vary depending on your credit score, industry, time in business, and revenue. You’re likely to find a merchant cash advance that works for you depending on these details.
Pros
Cons
The features of a Lendio merchant cash advance company depend on the company providing you with the loan. That means specifics, such as the advance amount, factor rate, and other details will vary between lenders on the platform. In general, however, you can expect lenders to want a 550 credit score or higher, $10,000 in monthly revenue, and half a year’s worth of business activity at minimum.
Features
Loan Type | Loan Features |
Term Length | Up to 2 years |
Repayment Period | Daily |
APR | As low as 18% |
Min-Max Amount | $5,000 - $200,000 |
Borrowing Fee | No borrowing fee |
Origination Fee | Varies by lender |
Late Payment Fees | Not disclosed |
Minimum Annual Revenue | $120,000 |
Minimum Time in Business | 6 months |
Interest Rate | Factor rates from 1.15% |
Early Repayment Discounts | Yes |
The Bottom Line
Lendio is a strong platform for finding the kind of financing your company needs. You don’t have to worry as much about having the perfect application credentials since Lendio’s partner lenders will determine if you’re a good fit for them. When you use Lendio, you don’t have to chase down different applications and wait around until you hear back. Rather, you can get the specifics of each offer all in one place, which allows you to compare options to pick the best advance for you.
Try Lendio Read the full Lendio review for more details.
6. Rapid Finance - Best for Loan Approval
Rapid Finance lives up to its name, offering small business owners a quick way of accessing capital through merchant cash advances. The company has low approval requirements, which means more businesses are likely to get an offer. Rapid Finance is even willing to work with sole proprietors (outside of Pennsylvania and Oklahoma) and home-based businesses. This makes it a compelling option for some of the smallest businesses out there. There are advantages and disadvantages to working with Rapid Finance that go beyond the application and approval process, however. Here’s what you need to know.
Pros
Cons
Rapid Finance does not provide as much information up-front about its merchant cash advance loan features. Not much is out there for prospective lenders to learn before getting an individual offer; the only public information is that repayment happens daily and factor rates usually range from 1.11 to 1.25. You may not find out more until you submit your application.
Features
Loan Type | Loan Features |
Term Length | 3-18 months, based on your business performance |
Repayment Period | Daily |
APR | Factor rates between 1.11 to 1.25 |
Min-Max Amount | $5,000 to $500,000 |
Borrowing Fee | Not disclosed |
Origination Fee | Not disclosed |
Late Payment Fees | Not disclosed |
Minimum Annual Revenue | $5,000 |
Minimum Time in Business | 3 months |
Interest Rate | Factor rates from 1.15% |
Early Repayment Discounts | Not disclosed |
The Bottom Line
Rapid finance can be a good option for companies with only a short time in business, since they only require three months of operation versus the usual six. They offer the same size advance amount as most other lenders as well as a competitive factor rate. Bear in mind that your terms may vary, and it might be hard to get this information before you submit your application.
Try Rapid FinanceRead the full Rapid Finance review for more details.
Best Merchant Cash Advance Companies
|
Company |
Min. Credit Score |
Min. Time in Business |
Min. Annual Revenue |
Advance Amount |
Factor Rate |
|
Fora Financial |
500 |
6 months |
$150,000 |
Up to $750,000 |
1.1 - 1.13 |
|
Credibly |
500 |
6 months |
$180,000 |
Up to $400,000 |
1.15 |
|
Fundera |
550 |
None |
None |
$2,000 - $500,000 |
1.15 - 1.48 |
|
Lendio |
550 |
6 months |
$50,000 |
$5,000 - $200,000 |
Varies per lender |
|
Torro |
680 |
6 months |
$120,000 |
$5,000 - $200,000 |
From 1.15 |
|
Rapid Finance |
Not disclosed |
Not disclosed |
Not disclosed |
Up to $500,000 |
1.11 - 1.25 |
What Is Merchant Cash Advance?
A merchant cash advance loan isn’t actually a loan at all. It’s a cash advance based on your future credit and debit card sales. A lender will take a look at your daily receipts and determine how much it thinks you’ll be able to pay back plus interest, usually known as a factor rate.
To work out your total payment you’ll need to multiply your borrowing amount by the factor rate. For example, if you borrow $50,000 and your factor rate is 1.4, you’ll pay a total of $70,000 (50,000 X 1.4). As you can see, rates can be high but merchant cash advances are incredibly convenient.
How Does a Merchant Cash Advance Work?
Merchant cash advance companies work in a slightly di