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Best Merchant Cash Advance Companies to Consider in 2022

Merchant cash advances give you near-instant access to cash and provide funding for emergency situations. Credit scores don’t matter as much, and there are no fixed monthly payments with merchant cash advances.

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

Reviewed by: Sarah Brooks, Personal Finance Writer and Editor

Fact Checked by: Dr. JeFreda R. Brown, DBA, CFEI and a highly respected financial expert


Many or all of the products featured here are from our partners who compensate us. This may affect which companies we write about and where the company appears on a page. However, any analyses, or reviews expressed in this article are those of the author’s alone, and have not been approved or endorsed by any partner.

A merchant cash advance is a form of lending where you pay back the loan with future debit and credit card sales. Rather than making monthly or weekly payments as you would with a traditional small business loan, the lender gets a small portion of each debit and credit card sale until the loan is paid back. Our team of financial experts reviewed and ranked the top online lenders to help you get funded. Read on to discover our choices for the seven best merchant cash advance companies.


Merchant cash advances may be a good option if you need access to capital immediately, as funds are typically in your account within one to two business days of loan approval. In this review, we highlight the rates, fees and terms of each lender and explain what makes them a good option. We also share potential downsides of each lender, and provide a methodology you can use to select the best option for your needs.


Best Merchant Cash Advance Companies for 2022 - Full Overview

1. Fora Financial - Best for Poor Credit

Fora Financial

Fora Financial is a direct 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 $750,000, 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.

Fast funding once approved
High borrowing limit
Low credit score requirement
No collateral
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 are ideal for businesses who need a large amount of capital in a short amount of time. Like all merchant cash advance lenders, fees can be steep, so this is something you need 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.

Main Features

Term Length No set term length
Repayment Period Based on credit card sales
Min-Max Amount $5,000 - $750,000
Borrowing Fee 10-30% of the loan
Origination Fee Up to 2.5%
Late Payment Fees $35
Minimum Annual Revenue $5,000 per month in credit card sales or $12,000 minimum in gross sales
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. Uncapped - Best for High Borrowing Limits


While some merchant cash advance providers charge pricey factor rates and hidden fees, Uncapped uses a revenue-based financing model with a transparent flat fee that is a percentage of the loan amount. And you can still benefit from the downside protection of repaying the loan from your sales.

Fees as low as 2%
No hidden costs
No prepayment penalties
Fixed-term and revenue-based options
Quick turnaround time
Borrow up to $10 million
Must have an online business model to qualify
Some state limitations
Must be established for 6 months
Minimum of $10,000 in monthly revenue

With Uncapped, you can borrow between $10,000 and $10 million at a flat fee ranging from 2% to 12% of the loan amount. You can repay the loan in fixed installments over a term of three to 24 months, or you can pay Uncapped 5% to 25% of your sales until the principal and fee are repaid. Either way, there are no prepayment penalties or hidden costs. There are also no minimum credit score requirements, but you’ll need to be an online business with at least six months of business history and at least $10,000 in monthly revenue to qualify.


Main Features

Term lengthVaries
Repayment 5% to 25% of revenue earned
Min - Max loan amount$10,000 to $10 million
Fixed Fee2% to 12%
Minimum Credit ScoreNone
Minimum Annual Revenue$120,000 and process more than 40% of payments online
Minimum Time in Business6 months

The Bottom Line

Uncapped offers an excellent alternative to traditional financing that provides downside protection without high interest rates. If you want a straightforward loan you can repay out of your sales or in installments, Uncapped is worth comparing.

Try Uncapped

3. Torro - Best for New Businesses


Torro offers startup loans, working capital loans in a form of merchant cash advances. With startup loans you make fixed monthly payments over a specified period of time. Merchant cash advances, however, are based on your future income. Rather than worrying about monthly payments, Torro takes a percentage of your credit card sales each day.

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.

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
Torro has a syndicated network of investors
High fees
Limited support

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, so long as you can prove your monthly revenue of $10,000 and that you’ve been in business for six months or more.

Min Features

Term Length 12-48 months, or until the loan is paid off
Repayment Period Varies
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)

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

4. Fundera by Nerdwallet - Best for Lender Marketplaces


Fundera is not a direct lender, but rather matches you to the right merchant cash advance company for your business. They’re extremely selective about who they partner with, allowing you to know you’ll only be offered the best merchant cash advances on the market today. Fundera also offers short-term business loans, invoice factoring, SBA loans, equipment financing, and business lines of credit.

Matched with quality lenders
Competitive rates and terms
Helpful customer support
Only requires a soft credit check
Loans can take longer to fund
Eligibility criteria not clear up front

Because Fundera doesn’t originate the loans, the features will vary between lenders. You can, however, use Fundera to compare loan terms, amounts, factor rates, revenue requirements, and more. To qualify for a merchant cash advance, you’ll need a minimum credit score of 550, be in business for two years, and have annual revenue of $180,000 or more.

Main Features

Term Length No set term length
Repayment Period Daily or weekly — usually around 15% of card sales
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 2 years
Interest Rate Factor rates starting at 1.09
Early Repayment Discounts None

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—allowing you to focus on your business, not your lender.

Try Fundera

5. Lendio - Best for Simple Application


Lendio is financing platform that helps customers and lenders connect. You don’t get financing from Lendio itself, but rather from one of its partners.

One of Lendio’s biggest advantages is how easy it is to apply. Simply fill out their cash advance application and submit four to six months of bank statements. You’ll hear back within 24 hours, and receive funding shortly after, if approved.

Easy application
More lenient credit requirements
Low revenue, low payments
High rates
No early repayment discount
Lendio gives a 7 out of 10 chance of getting approved for a loan

Lendio offers merchant cash advances from $5,000 to $200,000 with loan terms up to two years. While minimum qualifications will vary between lenders, you should aim for a minimum credit score of 550 and $10,000 in monthly revenue to increase your chances of approval.

Main 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
Minimum Annual Revenue $120,000
Minimum Time in Business 6 months
Interest Rate Factor rates from 1.2
Early Repayment Discounts No

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 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

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, making it a compelling option for some of the smallest businesses out there.

Allows for home businesses to get funding
Low credit score requirements
Fast funding once approved
High fees
No funding available for startups
Requires three existing credit accounts on your credit report

Merchant cash advances from Rapid Finance range from $5,000 to $500,000. Since payments are based on receivables, there is no fixed repayment term. Rather, you make daily payments based on your debit and credit card sales. To apply, you need just four things: A valid ID, a business bank account, three months of business bank statements, and three credit card processing statements.

Main Features

Term Length No set terms
Repayment Period Daily
Min-Max Amount $5,000 to $500,000
Fees Not disclosed
Minimum Annual Revenue $5,000
Minimum Time in Business 6 months
Interest Rate Factor rates from 1.15

The Bottom Line

Rapid finance can be a good option for small businesses in need of capital quick. 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.

7. Credibly - Best for Fast Funding


Credibly has been providing small businesses with financing since 2010, and has built a reputation for reliability and customer service in the years since. It takes just 10 minutes to fill out an application, and you’ll get a decision within 24 hours. If approved, you can receive your cash advance from Credibly in as little as 48 hours.

Fast decision and funding time
Flexible credit score requirements
Offers prepayment incentives
Blanket lien required
Daily, fluctuating repayments can be hard to budget for
Includes a $50 monthly administrative fee

Credibly offers merchant cash advances up to $400,000. Factor rates begin at 1.09, but may be higher depending on your application. To qualify, you’ll need a minimum credit score of 500, have been in business for at least six months, and have monthly bank deposits of $15,000 or more.

Main Features

Term Length No set term length
Repayment Period Daily based on credit card sales
Min-Max Amount Up to $400,000
Borrowing Fee No borrowing fee
Origination Fee 2.5% of the total loan amount
Minimum Annual Revenue $180,000
Minimum Time in Business 6 months
Interest Rate Factor rates from 1.09
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 need funding within 48 hours of approval. The lender is committed to the success of your small business, and has thousands of positive reviews to show for it.

Try Credibly

How We Choose the Best Merchant Cash Advance

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.

  • Loan features: The terms, payment options, and minimum and maximum amounts available are all important factors to consider when taking out a merchant cash advance.
  • Application process: Invasiveness of application information requirements, hard-pull or soft-pull credit score impact, and funding time all play a role in the application process.
  • Interest rates and fees: Different types of fees (e.g. loan origination fees) as well as minimum/maximum interest rates were taken into consideration.
  • Qualification process: Minimum credit score, annual revenue, and business history requirements will help you narrow down the right lender for your merchant cash advance.
  • Customer support: Accessibility to a live CSR rep, the degree of multi-channel support offered, and the availability of supplemental information and tools are something to consider.
  • Online user reviews: We looked at online reviews on independent review sites like Trustpilot.
  • Perks and bonuses: Specified service offerings like payment flexibility, advertising transparency, and advanced technology are a factor, too.


List of Main Features for the Best Merchant Cash Advance Companies

CompanyMin. Credit ScoreMin. Time in BusinessMin. Annual RevenueAdvance AmountFactor Rate
Fora Financial5006 months$150,000Up to $750,0001.1 - 1.13
Credibly5006 months$180,000Up to $400,0001.09
UncappedNot disclosed6 months$120,000Up to $10 millionAs low as 2%
Fundera550NoneNone$2,000 - $500,0001.15 - 1.48
Torro6806 months$120,000Up to $575,000From 1.15
Lendio5506 months$50,000$5,000 - $200,000From 1.2
Rapid FinanceNot disclosedNot disclosedNot disclosed$5,000 - $500,0001.11 - 1.25


What Is Merchant Cash Advance?

A merchant cash advance loan is 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 different way compared to conventional business lenders. In simple terms, a merchant cash advance requires your business to sell your future credit and debit card sales at a discounted figure. You then get access to a lump sum of capital, and payments are made based on future sales.

The holdback – the percentage of your daily card sales – will be sent directly to the lender via your card terminal provider, which means that you have no risk of missing payments.


Merchant Cash Advance Requirements

Since the lender knows roughly how much you can afford based on your credit card transactions, credit scores aren’t as important. Usually, those with scores of 500 or above will qualify. Monthly minimum revenue requirements vary considerably between lenders, but usually range between $2,500 and $15,000. Most lenders also want you to be in business for at least six months.

Applying for a merchant cash advance will not impact your credit score, allowing you to shop around before settling on a lender.


How to Apply for a Merchant Cash Advance

Generally, the application process for a merchant cash advance is much more streamlined than other types of lending. Here are the steps to applying for a merchant cash advance:

  • Step one - Submit basic personal details to your chosen lender, including the preferred borrowing amount.
  • Step two - The lender will ask for verification of your credit and debit card receipts, usually for the previous 12 months. You can provide this via your business bank statements or via records from your approved payment processor.
  • Step three - Lenders may ask for additional information, like your company structure and general financial health.
  • Step four - The lender will make a decision within a few hours of submitting your application. If approved, funding is usually dispersed within 24-48 hours.


Merchant Cash Advance Legal Issues

Some people have called the legitimacy of a business cash advance into question, claiming this type of alternative funding is illegal. In the U.S., the Federal Trade Commission (FTC) has launched a thorough investigation into cash advance loans due to potentially unfair contract terms imposed by online lenders.

However, the reality of the matter is that merchant cash advances are not meant to be viewed as loans, and are therefore almost wholly unregulated. They aren’t subject to usury laws or banking laws such as the Truth in Lending Act.

Because of this, lenders don’t need to take credit scores into account and borrowing amounts are almost entirely based on sales figures. This lack of regulation means interest rates and fees can be incredibly high and many companies can often end up trapped in cycles of unpayable debt. Always check your agreement carefully and make sure you’re confident of meeting the repayments.


Merchant Cash Advance Pros and Cons


  • Fast funding - Most lenders will be able to make an instant decision once you’ve submitted your documentation. This means small businesses can have access to a lump sum of cash within 24 hours of applying.
  • Unsecured lending - Almost all merchant cash advances are unsecured, meaning your assets aren’t at risk if you default.
  • Payments scale with sales - Most agreements will allow payments to fluctuate with sales, meaning that when your sales dip, so do your payments. This makes it easier to manage cash flows.
  • Generous borrowing amounts - Borrowing amounts range from $2,000 up to $10 million depending on the lender. Typically, the more monthly revenue you have, the more you’ll be able to borrow.
  • Easy application process - As long as you have the right documents on hand, you can finish an application in around 10 minutes.


  • High APR - The factor rates applied here often mean interest rates can run into triple digits. There’s no denying this is a convenient type of borrowing, but it’s very expensive. If you’re not careful, you could get trapped into a cycle of debt.
  • Cash flow issues - In some cases, small businesses may struggle to make daily deductions. Some might end up being unable to pay unexpected expenses or daily operating costs if a significant portion of sales go to repaying loans.


Alternatives to Merchant Cash Advances

The fees associated with merchant cash advances are high, making them one of the most expensive forms of borrowing. If you have decent credit, you may want to look into other forms of financing, as well.

Here are some alternatives to merchant cash advances worth considering.

Low (or Zero) Interest Credit Cards

  • Promotional interest rates may end up costing you less than factor rates.
  • Ideal for candidates with good credit
  • Can provide quick funding, especially if you get your card number right away
  • Requires you to repay your debt quickly to avoid interest charges

Learn more about Business Credit Card Funding >> 

Invoice Factoring

  • Ideal for businesses with outstanding invoices that need capital
  • Lenders own your invoices and pay you a percentage of their worth up-front
  • Factor charges are a fraction of what merchant cash advances cost
  • Generous borrowing amounts available

Here are the best invoice factoring companies of 2022 >>

Equipment Financing

  • Ideal for last-minute equipment purchases
  • Less flexibility with how you use the funds
  • Easy qualification, even with fair credit
  • No collateral required (purchased equipment serves that role)
  • Interest rates typically lower than merchant cash advance factor rates

Check out these top equipment financing lenders >>


Final Thoughts

The good news for borrowers is that there are a variety of options out there. For those with poor credit, or for whom time is of the essence, a merchant cash advance is one way to get money quickly. This option can be expensive, however, and may compound cash flow problems if you can’t keep up a steady amount of credit card transactions.

Brian T. O'Connor

Written by: Brian T. O'Connor

Copywriter & Content Marketer for Financial Services and Small Businesses

Brian is a small business writer, focusing on the best ways for entrepreneurs to get their business off the ground. Brian is the co-owner of Brunch Money, a digital strategy agency based in Connecticut.

More about me
Sarah Brooks

Reviewed by: Sarah Brooks

Personal Finance Writer and Editor

Sarah Brooks is a personal finance writer and editor with more than 10 years of experience. She specializes in personal and business loans, mortgages, auto loans, and credit cards.

More about me
Dr. JeFreda R. Brown

Fact Checked by: Dr. JeFreda R. Brown

DBA, CFEI and a highly respected expert in personal and business finance

Dr. JeFreda R. Brown is more than a financial consultant: she’s an avid teacher and subject matter expert who helps people—individuals and groups in a business setting—master the skills they need to achieve lasting financial wellbeing. As Founder and CEO of Xaris Financial Enterprises, it is her passion and life goal to help others develop and maintain financial wellness.

More about me

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