Finimpact

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.

Best Merchant Cash Advance
Brian T. O'Connor
Copywriter & Content Marketer for Financial Services and Small Businesses

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.

Our Top Picks for Best Merchant Cash Advance Providers

forafinancial
  • Ideal for plenty of industries
  • Approval not solely credit based
  • Early payoff discounts
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$750K
Loan Repayment
Loan Repayment 4-15 months
credibly
  • Simple application process
  • As soon as same day funding
  • Open to high-risk industries
Credit Score
Min. Credit Score 500+
Loan Amount
Loan Amount $5K-$400K
Loan Repayment
Loan Repayment 6-18 months
fundera
  • Connections to multiple lenders
  • Competitive rates
  • Soft credit check
Credit Score
Min. Credit Score 550+
Loan Amount
Loan Amount $5K-$5M
Loan Repayment
Loan Repayment Up to 30 years

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.

  • Advance features: the terms, payment options, and advance amounts available.
  • Application process: invasiveness of application information requirements, hard-pull or soft-pull credit score impact, and funding time.
  • Interest rates and fees: different types of fees (e.g. loan origination fees) as well as minimum/maximum interest rates.
  • Qualification process: minimum credit score, annual revenue, and business history requirements./
  • Customer support: accessibility to a live CSR rep, the degree of multi-channel support offered, and the availability of supplemental information and tools
  • Online user reviews: reviews on independent review sites like Trustpilot.
  • Perks and bonuses: specified service offerings like payment flexibility, advertising transparency, and advanced technology.
  • 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
    Offers fast approval if you’re approved
    High borrowing limit
    Payments come out automatically from your sales
    Do not require collateral to secure financing
    Cons
    Not ideal for cash-heavy companies with few card transactions
    High interest rates compared to other financing options
    Steep borrowing fee

    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.

    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
    Flexible credit score requirements
    Offers prepayment incentives
    Cons
    High advance amount (up to $400,000)
    Daily, fluctuating repayments can be hard to budget for
    Includes a $50 monthly administrative fee

    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 Credibly

    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
    Fundera works with a range of flexible lenders
    Rates and terms are competitive among lenders
    You’ll get connected to multiple lenders, rather than having to apply individually
    Only requires a soft credit check
    Cons
    Fundera-sourced loans can take longer to fund
    Eligibility criteria for Fundera-generated loans aren’t clear up front

    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 Fundera

    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
    Easy qualification, even with average or bad credit
    Connects you to a variety of lenders to compare offers
    Fast funding puts money in your account quickly
    Cons
    Loans do not come with specific use limitations on funds
    Bad credit loans may come with higher fees or factor rates

    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 Torro

    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
    You do not need to meet specific financial qualifications to use Lendio
    More lenient credit requirements
    Cons
    Merchant cash advances can be expensive in the long-term
    No definitive term lengths (determined by daily card sales instead)

    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

    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
    Allows for home businesses to get funding
    Low credit score requirements for easier approval
    Cons
    Won’t fund businesses with six NSF days in the past two months
    Won’t work with business owners with personal liens of $150,000+
    Requires applicants to own 50% of the business
    No funding available for startups
    Requires 3 existing credit accounts on your credit report

    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.

    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