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