The best merchant cash advance (MCA) companies will offer quick access to funds, flexible qualifications, and a simple application process. Generally, this type of financing is expensive and one that we only recommend as a last resort. That said, rates and fees should still be competitive when compared with other MCA lenders.
Here are our picks for the seven best merchant cash advance companies:
- Lendio: Best overall for rates, terms, and multiple financing options
- Sunwise Capital: Best for same-day and custom funding options
- Credibly: Best for easy documentation requirements
- GoKapital: Best for high-risk industries
- Reliant Funding: Best for low-revenue businesses
- Fora Financial: Best for newer businesses
- Libertas Funding: Best for high-revenue businesses seeking flexible repayment options
Best Merchant Cash Advance Companies at a Glance
Estimated Factor Rate | Estimated Starting APR | Maximum Funding Amount | Maximum Repayment Term | Required Credit Score | Required Annual Revenue | |
|---|---|---|---|---|---|---|
 | 1.08x | 18% | $2 million | 36 months | 500 | $96,000 |
 | 1.15x | 45% and up | $2 million | Varies | 500 | $200,000 |
 | 1.11x | 40% to 275% | $600,000 | 24 months | 500 | $180,000 |
 | 1.20x | 45% to 200%+ | $5 million | 18 months | None | $360,000 |
 | 1.10x | Varies | $400,000 | 15 months | 500 | $60,000 |
 | 1.15x to 1.35x | 35% to 185% | $1.5 million | Varies | Not stated | $240,000 |
 | 1.20x | 40% | $5 million | 12 months | 630 | $1.8 million |
Lendio: Best Overall for Rates, Terms & Multiple Financing Options
| |
Rates & Terms | |
Factor Rate | 1.08x and up |
Estimated APR | 18% |
Funding Amount | $5,000 to $2 million |
Repayment Term | 3 to 36 months |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | 500 |
Time in Business | 3 months |
Annual Revenue | $96,000 |
Why We Like Lendio
We selected Lendio as the best overall lender for MCAs because of its combination of competitive rates, terms, and qualification requirements. Notably, it also has some of the lowest credit score, time in business, and annual revenue requirements of this guide, just behind Reliant Funding.
As a broker, Lendio has a network of over 75 lenders which can provide you with multiple financing options with a single application. 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 in order to match you with a lender best-suited for your circumstances.
From a cash flow perspective, borrowers should know that when you 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.
If you’re looking for this specific type of financing, it’s labeled as a business cash advance on Lendio’s website. 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.
Sunwise Capital: Best for Same-day and Custom Funding Options
| |
Rates & Terms | |
Factor Rate | 1.15x and up |
Estimated APR | 45%+ |
Funding Amount | $10,000 to $2 million |
Repayment Term | Varies |
Funding Speed | As fast as same day |
Qualifications | |
Credit Score | 500 |
Time in Business | 1 year |
Annual Revenue | $200,000 |
Why We Like Sunwise Capital
If you’re in need of funding quickly, Sunwise Capital is an excellent option. Its team can issue decisions in just minutes, with only a few hours needed for funding. While providers like Credibly also offer quick access to funds, Sunwise offers higher funding amounts.
It can also offer flexible, tailored funding solutions for your specific needs. For these reasons, it makes our list of the best same-day and custom funding options. It 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.
Credibly: Best for Easy Documentation Requirements
| |
Rates & Terms | |
Factor Rate | 1.11x and up |
Estimated APR | 40% to 275% |
Funding Amount | Up to $600,000 |
Repayment Term | Typically 3 to 24 months |
Funding Speed | As fast as 4 hours |
Qualifications | |
Credit Score | 500+ |
Time in Business | 6 months |
Annual Revenue | $180,000 |
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. It made our list as the best option for easy documentation requirements since 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 over $100,000 only)
An added perk of working with Credibly is that it has the third lowest starting rate of those in our guide, behind Lendio and Reliant Lending. 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 pre-qualified and receive approval in as little as a few 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.
GoKapital: Best for High-risk Industries
| |
Rates & Terms | |
Factor Rate | 1.20x and up |
Estimated APR | 45% to 200%+ |
Funding Amount | $20,000 to $5 million |
Repayment Term | 3 to 18 months |
Funding Speed | 1 to 2 business days |
Qualifications | |
Credit Score | None |
Time in Business | 1 year |
Annual Revenue | $360,000 |
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. This level of flexibility makes it our top pick for businesses in high-risk industries.
One potential downside with GoKapital is that its funding speeds are slightly slower than the other lenders listed in here, whereas, with options like Credibly, you can get approval and funding in just a few hours. However, it is competitive when it comes to its rates, terms, and qualification requirements. For instance, it offers one of the largest funding amounts out of the MCA companies we chose, has no restrictions on what funds can be used for, and has flexible eligibility criteria that even allows funding for businesses with active tax liens.
Another benefit of getting an MCA with GoKapital is the flexibility to make payments on either a weekly or daily basis, depending on your preference. This can help your business’s cash flow depending on when you receive income from sales and other sources of revenue. To apply or learn more, visit the GoKapital website.
Reliant Funding: Best for Low-revenue Businesses
| |
Rates & Terms | |
Factor Rate | 1.10x |
Estimated APR | Varies |
Funding Amount | Up to $400,000 |
Repayment Term | Typically 3 to 15 months |
Funding Speed | As fast as 24 hours |
Qualifications | |
Credit Score | 500 |
Time in Business | 3 months |
Annual Revenue | $60,000 |
Why We Like Reliant Funding
Out of the individual providers on our list, Reliant Funding has the lowest annual revenue requirement, with similar qualification requirements to Lendio. It also requires just three months time in business, making it a viable option for borrowers who may not yet have large streams of cash flow—making it our best pick for low-revenue businesses.
With it, you have the ability to 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
| |
Rates & Terms | |
Factor Rate | 1.15x to 1.35x and up |
Estimated APR | 35% to 185% |
Funding Amount | $5,000 to $1.5 million |
Repayment Term | Varies |
Funding Speed | As fast as 24 to 72 hours |
Qualifications | |
Credit Score | Not stated |
Time in Business | 6 months |
Annual Revenue | $240,000 |
Why We Like Fora Financial
Fora Financial offers financing to businesses with limited operating history and can work with borrowers with bad credit. With no stated minimum credit score requirements and only 6 months’ time in business necessary, it’s our pick for newer businesses in need of financing.
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.
Libertas Funding: Best for High-revenue Businesses Seeking Flexible Repayment Options
| |
Rates & Terms | |
Factor Rate | 1.20x |
Estimated APR | 40% and up |
Funding Amount | $50,000 to $5 million |
Repayment Term | 3 to 12 months |
Funding Speed | As fast as same-day |
Qualifications | |
Credit Score | 630 |
Time in Business | Varies |
Annual Revenue | $1.8 million |
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. However, this lender has the highest credit score and annual revenue requirement on this list, so it’s best suited for high-revenue businesses.
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.
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 Lenders
The best merchant cash advance companies were selected using the following criteria:
- Factor rates, fees, and estimated APRs
- Application, approval, and funding speed
- Ease of application
- 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
MCAs can be quite an expensive form of financing and should generally be considered as a last resort for business owners having difficulty getting a traditional business loan. That said, if you can’t afford a MCA or are simply exploring all of your available financing options, consider the following alternatives:
- Accounts receivable (A/R) financing: A/R financing allows you to borrow against invoices you have issued to clients but haven’t yet been paid. You can see our top-recommended A/R financing companies to find the one 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. Our roundup of the leading invoice factoring companies can help you decide on a lender.
- 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: A business credit line 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 options, see our list of the top small business lines of credit.
- 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 lender 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.
Yes. Merchant cash advances are known to be one of the more expensive forms of financing, and we typically only recommend sourcing one if it’s your last resort. Generally, it’s costly since 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.
They can be a useful financial tool under the right circumstances. However, they are not a good idea for everybody and should only be considered if you’ve run out of other financing options. This is because it is a very expensive form of financing, with APRs often exceeding 100%. Since MCA companies expect payment to be made quickly, it can negatively impact your business cash flow.
Bottom Line
The best merchant cash advance lenders should have quick access to funding, flexible qualifications and repayment terms, and a simple application process. If you’ve decided that an MCA is right for you, this guide can help you compare rates, fees, and terms. Be sure to shop around for an MCA lender that meets your business needs and your budget before proceeding with this financing route.
